Actis buys a US$71 million stake in Endurance, one of India’s largest privately held auto component manufacturers22/12/11

Actis, a leading private equity investor in emerging markets, today announced an investment of US$71 million (INR 3,725m) in Endurance Technologies Limited (“Endurance”). The Endurance group, a leading Indian auto component manufacturer, consists of Endurance Technologies and its subsidiaries HTTS (India), Amann Druckguss (Germany), Endurance Fondalmec (Italy) and a joint venture with Magnetti Marrelli in India.

Endurance manufactures aluminium die castings, suspensions, transmissions and brakes with a specific focus on the motorcycle and scooter market and high end engine and transmission components for passenger and commercial vehicles. It is amongst the largest Indian auto components businesses and has a proven track record of growth. The majority of the company’s revenues come from two-wheeler and three-wheeler vehicle manufacturers including industry leaders such as Bajaj, Yamaha, Suzuki, Honda Motorcycles and Scooters and Royal Enfield. In the passenger car segment, the company counts global marquee names such as Daimler, Audi, Fiat and Porsche as customers. Endurance is competitive on a global scale, with 19 manufacturing facilities, strategically located at key auto hubs in India, Germany and Italy.

India is increasingly becoming a centre for quality and competitive sourcing for global Original Equipment Manufacturer (“OEM”) majors. With the world’s youngest population, increasing disposable income, weak public transport infrastructure and the ultimate aspiration of the emerging consumer class to own a means of transport, India is an attractive and high growth market for the automotive industry; and has the second largest market for motorcycles after China. The auto component industry in India is expected to grow from US$30bn today to US$110bn by 2020.

Endurance has an experienced, highly capable management team, led by Founder and Managing Director, Anurang Jain; under his able leadership, the company has benefitted from partnering with private equity, and sees a valuable role for Actis in the years to come.

Commenting on the deal JM Trivedi, Head of South Asia at Actis, said: “Endurance is an impressive business with robust credentials. Actis has a deep understanding of the automotive industry gained through our investments in Punjab Tractors, Avtec and Sandhar. We are excited to partner with Anurang Jain and look forward to working with the company as it continues to grow and develop.”

Anurang Jain, Founder and MD of Endurance added: “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 to date – with Actis as an investor I am sure we will.”

Kotak Investment Bank advised the company on this transaction.