The Hindu Business Line : Actis invests $23 m in auto components firm Sandhar

Actis has already made significant investments in the Indian auto sector and will bring its network of relationships and expertise to Sandhar as the components firm pursues its acquisition plans both within and outside India.

New Delhi , Dec. 29

UK-BASED private equity firm Actis has invested $23 million in the holding company of auto components firm Sandhar Locking Devices Ltd (SLDL).

SLDL is a leading manufacturer of components for both two and four-wheel automobiles with headquarters in Gurgaon.

According to Mr Jayant Davar, Managing Director of Sandhar Group, the company plans to utilise the funds to ink a domestic acquisition in the components space.

"We are on the verge of completing the acquisition of an auto components firm for about Rs 100 crore. This would be one of the largest acquisitions in the auto components industry domestically. We would be announcing the acquisition in the next few days," Mr Davar said, declining to divulge further details.

Industry sources, however, pointed out that SLDL might acquire an auto components unit from a large south India-based automotive group.

According to Mr Donald Peck, Managing Partner of Actis, "Companies like Sandhar have a huge growth opportunity in both domestic and export markets".

SLDL at present has collaboration with Honda of Japan and manufactures a range of components including locks, mirrors and sheet metal parts. It has immediate plans to expand into assembly of wheels and rims.

The company supplies to all leading OEMs in India (Hero Honda, Honda Cars, TVS etc) and also exports to major Japanese OEMs. The holding company of SLDL, Sandhar Technologies Ltd is estimated to have a turnover of about $ 100 million this year.

SLDL also has plans to come out up with an IPO in the next couple of years.