By 22 December, 2011

Private equity firm Actis has invested $71 million in privately held auto component maker Endurance Technologies Ltd, the investment firm has said on Thursday.

The auto component making firm is part of the Aurangabad-based Endurance Group, which has various business arms engaged in the auto ancillary business including HTTS (India), Amann Druckguss (Germany), Endurance Fondalmec (Italy) and a joint venture with Magnetti Marrelli in India. The group was set up by first-generation entrepreneur Naresh Chandra in 1985 as Anurang Engineering Co. Pvt Ltd for manufacturing aluminium die casting products.

The group specialises in aluminium casting (including alloy wheels), suspension, transmission and braking products, and has an annual revenue of $ 564 million (Rs 2,483 crore) from domestic operations and approximately $165 million (Rs 727 crore) from overseas operations for the year 2010-2011, according to its website. It currently has 19 plants across India, Italy and Germany.

The majority of Endurance's revenues come from two-wheeler and three-wheeler vehicle manufacturers, including leading companies like Bajaj, Yamaha, Suzuki, Honda Motorcycles & Scooters and Royal Enfield. In the passenger car segment, the company has customers like Daimler, Audi and Fiat.

Commenting on the deal, JM Trivedi, head of Actis (South Asia), said, “Endurance is an impressive business with robust credentials. Actis has a deep understanding of the automotive industry, gained through our investments in Punjab Tractors, Avtec and Sandhar.”

The auto component industry in India is expected to grow from the current $30 billion to $110 billion by 2020, Actis has said in a Press statement. The emerging markets private equity investor has been increasing its investments in Asia, Africa and Latin America. It currently has $4.6 billion funds under management globally.

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