December 2011
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PE firm Actis Advisors invests $71 mn in auto component maker Endurance

Actis Advisors Pvt. Ltd, an emerging-markets focused private equity (PE) firm, has acquired a minority stake worth $71-million (Rs371.6 crore) in Aurangabad-based auto component maker Endurance Technologies Ltd.
Founded in 1985 as Anurang Engineering Co. Pvt. Ltd, Endurance is a manufacturer of aluminium die casting that includes alloy wheels, suspension, transmission and braking products for two- and three-wheelers and passenger and commercial vehicles.
The Endurance group consists of Endurance Technologies and its subsidiaries HTTS (India), Amann Druckguss (Germany), Endurance Fondalmec (Italy) and a joint venture with Magnetti Marrelli in India.
The company posted revenues of Rs2,483 crore at its domestic operations and around $165 million (Rs727 crore) at its overseas operations for the year 2010-2011.
Around 73.5 per cent of its domestic revenues come from two-wheeler and three-wheeler vehicle manufacturers such as Bajaj Auto, Yamaha, Suzuki, Honda and Royal Enfield Motors, with Bajaj Auto and Fiat being its top customers.
In the passenger car segment, Endurance has customers like Porsche, Daimler, Fiat and Audi.
Endurance, run by founder and managing director Anurag Jain, has 19 plants across India, Italy and Germany.
The PE arm of Standard Chartered had invested $50 million in Endurance in 2007. It had planned to offload its stake through an initial public offer in 2010, when Endurance planned an IPO, but the company did not proceed with this floatation.
Commenting on the deal, J M 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.”
”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,” said Jain.
India is increasingly becoming a centre for quality and competitive sourcing for global Original Equipment Manufacturer (OEM) majors. 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 $30 billion today to $110 billion by 2020, according to industry estimates.
Source: Domain B

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