Private equity firm Bain Capital is picking up a significant minority stake in Dhoot Transmission Group, marking its second investment in an Indian automotive component maker within five months.
The investment will help Dhoot to drive innovation, expand global reach, and capitalize on high-growth segments, Bain said in a statement. It didn’t disclose the amount it is investing or the size of the stake it will pick up.
The deal comes just months after Bain in September invested in RSB Transmission to help the auto component company pursue organic growth and acquisitions.
India's multi-billion-dollar auto components sector has seen increased private equity interest recently even though the broader auto industry is seeing a slowdown after coming out of the COVID-19 pandemic. Blackstone, Warburg Pincus, Carlyle and Kedaara Capital are among the other PE firms that have invested in the auto component sector.
Late last year, Carlyle struck a deal to pick up a stake in Gurugram-based auto parts maker Roop Automotive Ltd as part of a two-stage transaction that involves Roop first absorbing auto parts supplier Highway Industries Ltd.
Dhoot Transmission, which makes wiring harness for two- and three-wheeler vehicles as well as commercial vehicles, said Bain’s investment will fuel its market leadership and international presence through organic and inorganic routes.
"We see significant opportunities to expand both organically and inorganically, accelerate exports, and enhance their global footprint," said Rishi Mandawat, partner at Bain Capital.
Dhoot Transmission was founded in 1988 and is owned by Rahul Dhoot and his family. Apart from wiring harness, it makes electronics sensors and controllers, automotive switches, connection systems and a range of products for electric vehicles. The group employs more than 10,000 people across 20 manufacturing facilities in India, the UK, Slovakia, and Thailand.
Alvarez and Marsal, AZB & Partners, ERM, ICICI Securities, Kearney, Kirkland and Ellis, KPMG and PwC acted as advisors to Bain Capital. Singhi Advisors, Trilegal and Deloitte served as advisors to Dhoot Transmission.
