Motilal Oswal PE to invest ₹200 cr in Happy Forgings

Rajesh Kurup Mumbai | Updated on October 16, 2018 Published on October 15, 2018

Motilal Oswal Private Equity (MOPE) has committed to invest ₹200 crore in a Ludhiana-based Happy Forgings, a supplier of forged, machined transmission and engine components to the automotive sector.

The deal marks Happy Forgings’ first-ever PE fund raising. It plans to use the funds for greenfield expansion and addition of new forging presses.

MOPE will make the investment from its India Business Excellence Fund–III (IBEF-III), which recently raised ₹2,300 crore ($325 million).

“Manufacturing has been one of the focus areas of our fund, as it is expected to benefit from strong underlying growth in the Indian economy as well as significant export opportunities,” said Vishal Tulsyan, MD and CEO of MOPE. “The commercial vehicles and capital equipment industry, which are expected to grow 3-4 times over the next decade, will be the key beneficiaries of this trend.”

“Considering its leading position in the forging industry and strong automotive and non-automotive client base, Happy Forgings is well-positioned to capture the upcoming industry growth. Through this partnership with Happy Forgings, we intend to create a large, differentiated leader in India’s forging industry,” he added.

Set up in 1979 by Paritosh Kumar Garg, Happy Forgings is a crankshaft manufacturer whose product range also includes steering knuckles, transmission gears, suspension assemblies and locomotive parts.

Growth plans

“Partnering with MOPE will help accelerate the company’s aggressive growth plans and will help the company foray into new products like front axle beams, large engine crankshafts, oil and gas products. MOPE’s rich experience in automotive and non-automotive manufacturing companies will add a lot of value to our organisation,” said Garg, a promoter of Happy Forgings.

Motilal Oswal Investment Banking was the financial advisor to Happy Forgings.

MOPE, a subsidiary of diversified financial services group Motilal Oswal Financial Services Ltd, manages three growth capital funds. The firm typically provides funding in the range of ₹100–300 crore across various sectors.

Published on October 15, 2018
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