Carlyle’s Strategic Acquisition of Highway Industries and Roop Automotives

Recently, Carlyle, a US-listed investment firm, has successfully acquired a controlling interest in the auto component manufacturers, Highway Industries and Roop Automotives. This acquisition, supported by equity from the investment funds linked to Carlyle Asia Partners, aims to bolster Carlyle’s involvement in producing precision-machined auto components for electric, hybrid, and internal combustion engine (ICE) vehicles. As part of the structure, the founders of both Highway and Roop will retain their ownership stakes in their companies and collaborate with Carlyle to harness operational efficiencies and enhance capabilities, as stated by the companies.

Amit Jain, Managing Director and Head of Carlyle India Advisors, remarked that there is a significant opportunity awaiting in India’s advanced manufacturing sector, particularly within the auto components supply chain that serves both domestic and export markets. He highlighted this as a major opportunity for growth for the platform.

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Future Developments Following the Acquisition

Amit Jain further added that consolidating their operations will yield greater scale and enable investments in technology, expertise, and infrastructures. This strategy is expected to enhance the value proposition for customers significantly. The partnership with Highway and Roop presents an exciting opportunity to develop this platform, and Carlyle is ideally positioned to accelerate its growth by leveraging its global network along with its automotive sector investments.

Executive Leadership in the Newly Formed Entity

Mark Blaufuss, Operating Executive at Carlyle, alongside Kishore Saletore, who previously held the position of Executive Director and Group CFO at Bharat Forge Limited, will join the board of directors for the combined entity. This strategic acquisition aligns with Carlyle’s ambition to strengthen its footprint in advanced manufacturing and the industrial sector.

As of December 31, Carlyle Asia Partners has achieved significant milestones with over $32 billion in equity investment spread across 125 deals, including approximately $1.1 billion specifically in Asia.

Also Read: Carlyle gets CCI nod to acquire 68.9% stake in Roop Automotives

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