Piramal Alternatives, the fund management arm of the Piramal group, has invested Rs 125 crore (around $13.2 million) in JRG Automotive Industries.
The Gururam-headquartered JRG Automotive manufactures powertrain-agnostic injection-molded parts for two-wheelers and passenger vehicles. The company is promoted by first generation entrepreneur Pawan Goyal and his family, and operates eight manufacturing facilities across key automotive manufacturing hubs in North, West and South India.
The investment, made through the Piramal Alternatives India Credit Opportunities-II, will be leveraged to fund capacity expansion and strategic growth initiatives, including expanding the company’s product portfolio, Piramal Alts said in a press note.
Piramal Alternatives India Credit Opportunities-II has made four investments so far, including the latest in JRG Automotive Industries. The sector-agnostic fund invests in high-growth mid-market opportunities with a time horizon of three-to-four years. The first credit opportunities fund, which has a size of Rs 2,100 crore, has made 17 investments from which it has exited 13.
“JRG’s longstanding relationships with leading automotive OEMs, its track record of increasing content per vehicle, commitment to quality, and strategic expansion into new product categories position it well for sustained growth,” Kalpesh Kikani, CEO, Piramal Alternatives said in the note.
Piramal Alternatives has $1.6 billion in assets under management. The firm has launched various strategies such as performing credit, fund of funds and growth capital.
It has also launched an India Resurgence Fund in partnership with Bain Capital Credit. The control-led turnaround investing platform invests in debt and equity in mid-to-large sized companies in India.
