Mysuru-based N Ranga Rao & Sons Pvt. Ltd (NRRS), which makes incense sticks under the Cycle Pure brand, has sold a minority stake to Motilal Oswal Private Equity Investment Advisors Pvt. Ltd for an undisclosed amount.
Motilal Oswal PE said in a statement that it had made the investment through its third fund, India Business Excellence Fund-III.
This is the first time that NRRS is raising private equity capital.
Apart from incense sticks, the firm also manufactures and markets items under different brand names such as Om Shanthi (puja products), Lia (agarbathies, room fresheners and car fresheners), Stop-O (odour fighters) and IRIS (lifestyle home fragrances).
Vishal Tulsyan, managing director and chief executive officer of Motilal Oswal PE, said that NRRS was almost double the size of its nearest competitor.
Originally a partnership firm established in 1948, NRRS was incorporated in December 2014. It is part of Mysuru-based NR Group.
Motilal Oswal Private Equity
Motilal Oswal Private Equity is the PE arm of Motilal Oswal Financial Services Ltd. It is looking to make the final close of third fund at $325 million (Rs 2,000 crore). The firm said in the statement that it marked the second close at around Rs 1,370 crore.
A top executive had told VCCircle in January that the firm was targeting a final close by June.
Motilal Oswal PE is currently making investments through its third fund and has already invested in Ahmedabad-based non-banking finance company (NBFC) MAS Financial Services Ltd, according to its website.
The PE firm had raised $115 million in a growth capital fund in 2007 and mopped up $155 million in its second fund in 2012. The first fund invested in 13 companies while the second struck 11 deals.
The PE firm has been steadily exiting several of its investments from its previous two funds.
It has so far exited Parag Milk Foods, Mrs Bector’s Food Specialties, Electromech, AU Financiers, Minda Industries, Power Mech Projects, Resurgere Mines & Minerals, InTarvo Technologies, Effort BPO, IMP Powers, and Time Technoplast.
In November last year, Motilal Oswal PE logged out completely from its nearly decade-old investment in contract electronics manufacturer Dixon Technologies (India) Ltd, marking one of its most profitable exits.