Global investment firm Carlyle announced it has completed the acquisition of a controlling stake in Highway Industries and Roop Automotives through a proprietary and exclusive transaction. The equity for the investment will come from investment funds affiliated with Carlyle Asia Partners (CAP).
Highway and Roop are among the leading players in manufacturing forged and precision-machined components, steering system assemblies, transmissions, and other powertrain applications for electric, hybrid, and internal combustion engine (ICE) powered vehicles.
Over the last 30 years, the Platform created a comprehensive product range of over 1,500 products, an extensive global client base of 55 customers across 17 countries, and an expansive manufacturing footprint of 12 plants and 14 international warehouses. Carlyle also plans to deepen its investments in the auto components space and will seek to add synergistic assets to the Platform.
The founders of Highway and Roop will continue holding stakes in the Platform, underscoring their commitment to the companies’ long-term success. Carlyle will work with Highway and Roop to help them leverage operating synergies and create capabilities and capacities to deliver enhanced value for their customers.
Oswal will serve as Non-Executive Chairperson of the Board for the Platform Entity. And Mark Blaufuss, Operating Executive at Carlyle with over 30 years of leadership experience in the automotive and manufacturing sectors; and Kishore Saletore, former Executive Director and Group CFO at Bharat Forge Limited, with over three decades of diverse industry experience, will join the Platform Entity’s Board of Directors.
KPMG, Trilegal, Kotak and Deloitte acted as advisors to Carlyle for the deal. And Singhi Advisors and KPMG acted as the financial advisors to Highway and Roop shareholders, respectively.
Carlyle’s buyout funds, including Carlyle Asia Partners, have deep experience investing in the Advanced Manufacturing or Industrial sector. As of December 31, 2024, they had invested over $32 billion of equity in over 125 deals globally, with approximately $1.1 billion of this in Asia.
KEY QUOTES:
“We believe India offers a tremendous opportunity in the advanced manufacturing sector, particularly in the auto components supply chain for both domestic and export markets. In our view, this provides a large-scale opportunity for the Platform. We believe creating scale with consolidation will enable investments in technology, talent and systems, which will allow the Platform to deliver an enhanced value proposition for its customers. We are excited to partner with Highway and Roop to build this Platform. Carlyle is well-placed to accelerate the growth of the Platform by leveraging our worldwide network and investments in the automotive sector globally.”
– Amit Jain, Managing Director and Head of Carlyle India Advisors
“Roop has been an industry pioneer in the manufacturing of steering components and assemblies. For over 30 years, we have built strong expertise in our target applications and established deep relationships with our customers globally. Our partnership with Carlyle and Highway makes us even stronger and allows us to provide holistic solutions to our customers and value-add to all stakeholders.”
– Mohit Oswal, Managing Director of Roop
“At Highway, we have been at the forefront of driving technology-led growth for our customers globally and in India. With Carlyle’s investment and the partnership with Roop, I am confident that we will deliver on our collective commitment to drive innovation and broaden offerings for our clients.”
– Umesh Munjal, Managing Director of Highway
