After Bain and Blackstone, Carlyle makes a big bet on this manufacturing sector

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Subscribe to enjoy similar stories. Global private equity firm Carlyle is building a $400 million platform in India to acquire and merge auto component makers, two people aware of the plans said. Carlyle may acquire at least two parts-makers by the end of this financial year and two more in the next 12-18 months, the people cited above said on the condition of anonymity, adding it will focus on companies catering to electric vehicles, as well as export-led companies.

“The firm is looking to build a business with a focus on auto components, especially in the precision machining and forging components in EVs," one of the two people cited above said. “It will look to acquire mid-size companies and integrate them," he added. Apart from EVs and exports, Carlyle will also make smaller investments in component makers for commercial vehicles.

The PE firm will look to secure controlling stakes in its investments, the people cited above said. Carlyle did not respond to a request for comment on Sunday. Since Carlyle has not found suitable large-sized businesses, it will buy smaller businesses to be integrated later, the people cited above said, in so-called roll-up mergers.

In August, Carlyle acquired Worldpac, a leading automotive aftermarket parts provider in North America from Advance Auto Parts in a $1.5 billion deal. “It is a thesis that they strongly believe in and are looking to replicate in other markets. Besides being a huge domestic consumption play, India can grow as an export hub, especially in the auto component segment and hence, this seems a lucrative opportunity," the second person added.