Tata Capital to buy minority stake in Standard Greases

The deal has received approval from the Competition Commission of India (CCI). According a filing, Tata will subscribe to new shares in the company via the Tata Capital Growth Fund (TCGF) and Singapore-based Alpha TC Holdings. Each entity will hold an 8.68% stake.

Established in 1983, Standard manufactures and processes greases and lubricating oils for use in automobiles and hydraulics. The business has five plants in operation in western India - two in Tarapur; two in Silvassa; and one in Turbhe.

The deal was signed in June, after which Tata Capital and Alpha TC Holdings approached the CCI for its approval on July 18.

The investment is the first to be made this year by the $240 million TCGF. The vehicle typically targets growth capital investments in companies that derive a large portion of their revenues from operations in India, investing between $10 million and $25 million per transaction. The fund had previously co-invested with Alpha Holdings in group firm Tata Technologies, where the two had brought in around $30 million together.

Tata Capital manages private equity and venture capital funds with cumulative assets under management (AUM) of about $1 billion. Its five funds include TCGF, Tata Capital Healthcare Fund, Tata Capital Innovations Fund, Tata Capital Special Situations Fund and Trust and Tata Opportunities Fund.

 

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• Topics
• South Asia
• Industrials
• Expansion
• India
• Tata Capital
• manufacturing
• Growth capital