Carlyle forays into auto components in India, buys 2 companies

U.S.-based private equity giant Carlyle today announced the acquisition of a controlling stake in Highway Industries Ltd (Highway) and Roop Automotives Ltd. Equity for the investment will come from investment funds affiliated with Carlyle Asia Partners (CAP), the global investment firm says. The deal value, however, was not disclosed.

Highway and Roop manufacture forged and precision-machined components, steering system assemblies, transmissions and other powertrain applications for electric, hybrid and internal combustion engine (ICE) powered vehicles. Over the last 30 years, the two have built a product range of over 1,500 products, an extensive global clientele of 55 customers across 17 countries, and an expansive manufacturing footprint of 12 plants and 14 international warehouses.

Carlyle says it intends to deepen its investments in the auto components space and will seek to add synergistic assets to its new ‘platform entity’.

The founders of Highway and Roop will continue to hold stakes in the ‘platform’, underscoring their commitment to the long-term success of the companies, the statement says.

Carlyle says it will work with Highway and Roop to help them leverage operating synergies and create capabilities and capacities, to deliver enhanced value for their customers.

“We believe India offers a tremendous opportunity in the advanced manufacturing sector, particularly in the auto components supply chain for both domestic and export markets. In our view, this provides a large-scale opportunity for the Platform. We believe creating scale with consolidation will enable investments in technology, talent and systems, which will allow the Platform to deliver an enhanced value proposition for its customers,” says Amit Jain, Managing Director and Head of Carlyle India Advisors.

“Carlyle is well-placed to accelerate the growth of the Platform by leveraging our worldwide network and investments in the automotive sector globally,” says Jain.

Mohit Oswal, Managing Director of Roop, will serve as Non-Executive Chairperson of the Board for the Platform Entity. Additionally, Mark Blaufuss, Operating Executive at Carlyle with over 30 years of leadership experience in the automotive and manufacturing sectors; and Kishore Saletore, former Executive Director and Group CFO at Bharat Forge, with over three decades of diverse industry experience, will join the Platform Entity’s Board of Directors.

Roop manufactures steering components and assemblies. “For over 30 years, we have built strong expertise in our target applications and established deep relationships with our customers globally. Our partnership with Carlyle and Highway makes us even stronger and allows us to provide holistic solutions to our customers and value-add to all stakeholders,” says Oswal.

Carlyle’s buyout funds, including Carlyle Asia Partners, have invested over $32 billion of equity in over 125 deals globally in the advanced manufacturing or industrial sector as of December 31, 2024, with approximately$1.1 billion of this in Asia.