Piramal Finance commits Rs 565 Crore in 2 auto component firms

Piramal Enterprises Limited through its subsidiary Piramal Finance Limited has financed RSB Group to the extent of Rs. 275 crore and Indoshell Mould Limited to the extent of Rs. 290 crore. The investments were made through the Corporate Finance Group (CFG), erstwhile Structured Finance Group, of Piramal Finance Limited.

RSB manufactures auto engineering products such as propeller shafts, gears, axles & machined products for engine components and construction equipment aggregates. The company has strong domestic presence with 11 manufacturing facilities spread across major auto clusters and caters to all the major OEMs in the commercial vehicles, passenger cars, construction and farm equipment.

Indo Shell is a two-wheeler focussed precision cast supplier and has a well-diversified customer base. The company has been consistent in producing high quality engine cylinder blocks at competitive costs and consequently enjoys a healthy order book from marque two-wheeler OEMs.

Khushru Jijina, Managing Director, Piramal Finance Limited, said “The auto component space has been on our radar as a focus area for a while now. As is standard practise across our platform, we committed to an in depth study of the sector over the past few quarters which, has culminated in announcing these first two transactions. The industry has grown at a 15% CAGR over the last decade, which is significantly higher than the OEMs themselves. Both RSB and Indoshell have long standing relationships with major OEMs and command higher wallet share of their respective customer set. We look forward to more such transactions as we further scale up our investment focus towards this sector.”