PE firm acris buys 10-13% in Auto parts co endurance tech for 71m

Global private equity firm Actis PE has picked up 10-13% stake in Indian auto component makerEndurance Technologies for $71 million (Rs 372.50 crore), said people close to the deal.

"Actis has a deep understanding of the automotive component industry through its investments in Avtec and Sandhar as well as Punjab tractors...Endurance as a company has a strong potential with a very high quality management team running the show, so we see an attractive prospect for this company," JM Trivedi, head of Actis South Asia, said.

Actis PE declined to comment on the exact stake purchase and Endurance Technologies was not available to comment on the same. Kotak Investment Bank was advisor to Endurance Technologies for the deal, said sources.

In 2010-11, Standard Chartered PE, with 13.7% stake in Endurance Technologies, had reportedly planned to sell its stake in the auto component maker through a proposed initial public offering. But, the company did not go ahead with the IPO due to rough market condition. However, it is unclear whether Actis bought the stake from Standard Chartered PE.

Endurance Technologies, a part of the Rs 3,200-crore automotive component major Endurance Group, has clients like Bajaj, Yamaha, Suzuki, Honda Motorcycles and Scooters and Royal Enfield. In passenger car segment, the company counts global car makers such as Daimler, Audi, Fiat and Porsche as customers.

Endurance Technologies manufactures aluminium die castings, suspensions, transmissions and brakes for motorcycles and high-end engine and transmission components for passenger and commercial vehicles. "I look forward to partnering with Actis. Their track record in emerging markets and the sector gives me a lot of confidence.

Endurance now has the opportunity to continue to build on its achievements with Actis, and as an investor I am sure we will," Anurang Jain, founder and managing director, Endurance Technologies, said in a press statement.

The company has a turnover close to Rs 2,100 crore and it has been growing at a compounded annual growth rate of more than 25-30% in the past few years.