Motilal Oswal invests $27m in India auto player

This is the first institutional funding round for Happy Forgings, one of India’s largest manufacturers of crankshafts and a major producer of transmission components and suspension assemblies. The company will use the new capital to add product lines, expand its manufacturing facilities, and purchase new equipment.

Founded in 1979, Happy Forgings has a forging capacity of 60,000 metric tons and machining capacity of 20,500 metric tons. It serves customers in the railway, tractor, and industrial equipment industries, as well as commercial vehicles.

MOPE is investing from India Business Excellence Fund III (IBEF III), its latest investment vehicle which launched in 2017 with a target of INR23 billion ($325 million). The fund is expected to make 10-12 investments in sectors targeted by its predecessors such as financial services, healthcare and consumer, along with a growing focus on industrial businesses.

“Manufacturing has been one of the focus areas of our fund as it is expected to benefit from strong underlying growth in the Indian economy as well as significant export opportunities,” said Vishal Tulsyan, managing director and CEO of MOPE, in a statement. “Considering its leading position in forging industry and strong automotive and non-automotive client base, Happy Forgings is well-positioned to capture the upcoming industry growth.”

This is the third investment by IBEF III, following a commitment last year to non-banking finance company (NBFC) MAS Financial Services and an investment in April in incense and fragrance products maker Cycle Pure.

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• Topics
• South Asia
• Industrials
• Expansion
• India
• Motilal Oswal Private Equity
• Growth capital
• manufacturing
• automobiles