TPG invests in India's RR Kabel

The size of TPG's investment has not been disclosed, though reports in Indian media put the transaction value at more than INR6 billion ($83 million). Puneet Bhatia, co-managing partner of TPG Capital Asia, and Mitesh Daga, a principal at the firm, will join the company's board, according to a statement.

RR Kabel was founded in 1999 and is the flagship company of the RR Global conglomerate. It specializes in producing electrical wires and low-voltage cables for India's construction industry, and was the first cable-maker in India to introduce fire-retardant coating and Unilay construction, which allows the production of lighter, narrower cables.

In addition to its core cable manufacturing operations, the company recently launched a consumer appliances business to leverage its distribution network and brand strength. The new division will produce equipment including fans, lighting equipment, water heaters, and air conditioners, in addition to electrical components.

India's government hopes to rapidly expand the supply of affordable housing, with Prime Minister Narendra Modi having pledged last year to build 12 million new homes for the urban poor by 2022. This is expected to drive demand in supporting industries such as cables, and established, organized brands such as RR Kabel are seen as well-positioned to benefit. 

The TPG Asia team currently has $7.8 billion under management. The firm's India portfolio covers a range of sectors, including healthcare – with stakes in Sai Life Sciences and Manipal Hospital Enterprises – and financial services, where it has backed non-banking finance company Five Star Business Finance and microfinance lender Janalakshmi Financial Services.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• South Asia
• Industrials
• Expansion
• India
• manufacturing
• TPG Capital