Carlyle Acquires Controlling Stake in Highway Industries and Roop Automotives

Global investment firm Carlyle has completed the acquisition of a controlling stake in Highway Industries Limited and Roop Automotives Limited through a proprietary transaction, marking its expansion in India's auto components manufacturing sector. The equity investment will come from funds affiliated with Carlyle Asia Partners.

The transaction, announced in Mumbai and New Delhi on February 13, combines two manufacturers of forged and precision-machined components for electric, hybrid, and internal combustion engine vehicles. The merged platform operates 12 manufacturing plants and 14 international warehouses, serving 55 customers across 17 countries with over 1,500 products.

The founders of both Highway and Roop will retain stakes in the combined entity. Mohit Oswal from Roop will serve as Non-Executive Chairperson of the board. The board will also include Mark Blaufuss, Operating Executive at Carlyle, and Kishore Saletore, former Executive Director and Group CFO at Bharat Forge Limited.

Amit Jain, Managing Director and Head of Carlyle India Advisors, cited India's potential in the advanced manufacturing sector, particularly in auto components supply chain for domestic and export markets, as key drivers for the acquisition. The firm plans to leverage operating synergies and expand capabilities to enhance customer value.

The deal reflects Carlyle's growing interest in India's manufacturing sector. The investment firm's buyout funds, including Carlyle Asia Partners, have invested over US$32 billion in more than 125 deals globally in the advanced manufacturing sector as of December 31, 2024, with approximately US$1.1 billion invested in Asia.

Highway Industries, known for technology-led growth, and Roop Automotives, a manufacturer of steering components and assemblies, bring three decades of industry experience to the merged platform. The combination aims to strengthen their market position and broaden offerings for global clients.

KPMG, Trilegal, Kotak, and Deloitte served as advisors to Carlyle for the transaction, while Singhi Advisors and KPMG acted as financial advisors to Highway and Roop shareholders respectively. The deal value was not disclosed in the announcement.