IndiaRF Acquires Majority Stake in Ashok Iron Works' Casting and Machining Business

India Resurgence Fund (IndiaRF), an India-focused investment platform promoted by Piramal Finance and Bain Capital, has acquired a majority stake in Fine Edge Engineering Private Limited, which houses the iron casting and machining business of the Ashok Iron Works Group.

The transaction gives IndiaRF a controlling interest in the Belagavi-based manufacturer, which produces machined iron castings for industrial engines, farm equipment and automotive applications. Founded in 1974, the company operates four foundries with a combined installed capacity of 144,000 metric tonnes per annum (MTPA) and seven machine shops capable of producing around 600,000 parts annually.

Ashok Iron Works manufactures engine blocks, engine heads and transmission housings weighing between 20 kg and 5,000 kg. The company says it has the capability to manufacture machined engine blocks ranging from one-cylinder to 18-cylinder configurations and supplies both domestic and global original equipment manufacturers (OEMs).

According to the companies, the integrated casting and machining setup supports new product development and capacity expansion, while its customer base includes long-standing relationships with OEMs across multiple end markets.

IndiaRF said it intends to support the business through investments in capacity expansion, research and development, new product development and operational improvements following the acquisition.

Investec acted as the exclusive sell-side adviser to the Ashok Iron Works Group and its shareholders for the transaction.

"We will support the business through investments in capacity expansion, R&D, new product development and operational excellence, while building on its long-standing customer relationships," said Shantanu Nalavadi, Managing Director, IndiaRF.