Global investment firm Carlyle has acquired a controlling stake in Indian auto component manufacturers Highway Industries and Roop Automotives.

Highway Industries and Roop Automotives are leading manufacturers of forged and precision-machined components.

The acquisition, funded by Carlyle Asia Partners, aims to consolidate and strengthen the companies' position in the electric, hybrid, and internal combustion engine (ICE) vehicle parts market. The founders of both companies will retain stakes and continue to be involved. Carlyle plans to leverage its global network and experience to expand the platform and enhance its offerings.

Amit Jain, Managing Director and Head of Carlyle India Advisors said: “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 are excited to partner with Highway and Roop to build this Platform.”

Investment from Carlyle Asia Partners

Carlyle completed the acquisition through a proprietary and exclusive transaction. The investment will come from funds affiliated with Carlyle Asia Partners (CAP). The combined entity, referred to as the Platform, will benefit from Carlyle's expertise and resources. Carlyle intends to further invest in the auto components sector and add synergistic assets to the Platform.

To enhance the capacity of the companies

“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,” said Mohit Oswal, Managing Director of Roop.

Speaking on the development, Umesh Munjal, Managing Director of Highway said: “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."