Global investment firm Carlyle has announced the acquisition of a controlling stake in Highway Industries Limited and Roop Automotives Limited. The deal, completed through a proprietary transaction, is part of Carlyle's strategy to invest in advanced manufacturing enterprises both in India and globally. The funds for this investment will come from Carlyle Asia Partners.
Highway and Roop are recognized for their manufacturing capabilities in forged and precision-machined components, steering system assemblies, transmissions, and other powertrain applications suitable for electric, hybrid, and internal combustion engine vehicles. Over the past 30 years, they have developed a diverse product range with over 1,500 products serving 55 customers across 17 countries.
The founders of Highway and Roop will retain stakes in the Platform Entity. Carlyle plans to collaborate with these companies to enhance operating synergies and expand their capabilities.
Amit Jain, Managing Director at Carlyle India Advisors stated: “We believe India offers a tremendous opportunity in the advanced manufacturing sector... We believe creating scale with consolidation will enable investments in technology... which will allow the Platform to deliver an enhanced value proposition for its customers."
Mohit Oswal of Roop remarked on the partnership: "Roop has been an industry pioneer... Our partnership with Carlyle and Highway makes us even stronger."
Umesh Munjal of Highway expressed confidence that "with Carlyle’s investment... we will deliver on our collective commitment to drive innovation."
Mr. Oswal is set to become Non-Executive Chairperson of the Board for the Platform Entity. Joining him on the board are Mark Blaufuss from Carlyle and Kishore Saletore.
KPMG, Trilegal, Kotak, Deloitte served as advisors to Carlyle during this transaction while Singhi Advisors along with KPMG advised Highway and Roop shareholders.
Carlyle has extensive experience investing globally in sectors like Advanced Manufacturing or Industrial having invested over US$32 billion across more than 125 deals as of December 31, 2024.