Kotak PE invests $25m in Minda Corporation

The deal was realized in two tranches, with KPEG paying $800 million for an initial shareholding in 2011, followed by a second tranche worth $45 million.

"From our perspective, auto components happen to be a growing opportunity, especially as the two-wheeler segment continues to do well," KPEG CEO Nitin Deshmukh told VCCircle. "We continue see good number in auto sales, especially in rural areas, and in terms of aspirations of moving to luxury cars."

Minda Corp is the flagship unit of the Ashok Minda Group (formally Spark Minda), which split from the Minda Group in 1996.

India's status as a center for competitive sourcing for global original equipment manufacturers is growing, driven by its young population, increasing disposable income and weak public transport infrastructure. The local auto component industry is expected to grow from $30 billion to US$110 billion by 2020.

Valuations in this sector picked up in 2011, spearheaded by Navis Capital's $100 million buyout of Classic Stripes, a Mumbai-based manufacturer of graphics used on automotive vehicles, last June.

In December, meanwhile, Actis invested INR3.7 billion in Endurance Technologies, one of India's largest privately held auto component manufacturers. The company manufactures aluminum die castings, suspensions, transmissions and brakes, which target the motorcycle and scooter market.

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• Topics
• South Asia
• Expansion
• Industrials
• automobiles
• India
• Growth capital
• Kotak Investment Advisors
• Actis Capital
• Navis Management