Aavishkaar Capital has invested INR 43 Crores (USD 5 million) in Poshs Metal Industries Private Limited, a company specializing in the processing of auto-grade flat steel. The funding comes from Aavishkaar's USD 220 Million Global Supply Chain Support Fund, marking its seventh investment.
The investment will support Poshs Metal's expansion into Aurangabad, where the company is establishing a new processing facility to serve major automotive manufacturers. Poshs Metal has been an exclusive steel processing and distribution partner for Tata Steel in Western India for 25 years.
Asheer Kapoor, Promoter & Director of Poshs Metal, said the funding will enable the company to increase production capacity and serve customers more efficiently. The company's client base includes Tata Motors, Bajaj Auto, Mahindra, Volkswagen, and Volvo.
Abhishek Mittal, Partner-Credit at Aavishkaar Capital, cited the company's environmental and social governance practices as factors in the investment decision. These include minimizing waste, implementing efficient logistics, and delivering quality products on competitive timelines.
Founded in 1998 by Ashok Kapoor, Poshs Metal has developed several value-added services including custom steel blank production, in-house packaging, and scrap processing. The company has introduced sustainable steel pallet packaging technology as an alternative to wooden pallets.
The Global Supply Chain Support Fund was created in partnership with KfW, a German state-owned development bank. The fund focuses on supporting small and medium enterprises in global supply chains across Asia and Africa that demonstrate commitment to environmental sustainability and social inclusion.
Stephanie Lindemann-Kohrs, Global Head of Equity and Funds at KfW Development Bank, emphasized that the fund aims to enhance environmental and social standards in companies integrated into European supply chains, particularly in reducing carbon footprints and improving labor conditions in automotive manufacturing.
Aavishkaar Capital, the impact investing arm of the Aavishkaar Group, has raised eight funds with approximately USD 1.5 billion in assets under management. The company focuses on high environmental and social impact sectors across India, Emerging Asia, and Africa.
The Indian automotive sector faces a mix of opportunities and challenges including the transition to electric vehicles, sustainable mobility advancements, increasing competition, and rising costs. Companies like Poshs Metal that can adapt to these changes while maintaining strong supply chain relationships are positioned for continued growth in the sector.