Homegrown mid-market private equity firm CX Partners, which invests across healthcare, financial services, IT and consumer products and services sectors in the country, has struck a fresh bet in an aerospace components manufacturer.
The firm, commanding assets under management (AUM) of around $625 million, has now invested Rs 100 crore (around $12 million) in JJG Aero.
The Bengaluru-based manufacturer primarily focusses on the commercial aerospace segment with specialisation in seating, cargo, landing, electric and air management systems.
Its clientele includes companies like Boeing, Liebherr, Collins, Safran, Woodward and Parker.
This transaction was advised by Veda Corporate Advisors.
“The aerospace supply chain is facing all-time high demand from aircraft manufacturers, which the legacy vendors in the western world are struggling to meet. The global geopolitical issues, economic stability, and government support make India ideally placed to benefit from this,” said Anuj Jhunjhunwala, CEO of JJG Aero.
As for CX Partners, the firm was in the news last year because of its latest fund.
VCCircle reported in February 2023 that CX Partners had hit the road to raise nearly $300 million (then around Rs 2,300 crore).
The PE firm has been an investor in some marquee Indian names like Barbeque Nation, Sapphire Foods, Thyrocare Technologies, Ujjivan Financial Services, amongst others.
Commenting on the JJG transaction, CX’s managing partner Vivek Chhachhi said, “JJG Aero has demonstrated a CAGR of 35% over the last three years. This investment will enable JJG Aero not only to continue its growth through capacity addition but also to upgrade the quality of earnings by focussing on higher value-added components.”
The manufacturer posted revenue of Rs 39 crore and a profit after tax of Rs 2.4 crore for FY22, according to VCCEdge, the data intelligence platform of VCCircle.
The company's revenue in FY24 was Rs 138 crore and EBITDA was Rs 30 crore, it said.
