India Resurgence Fund ("IndiaRF"),
promoted by Piramal Enterprises Limited and Bain Capital Credit has made an
announcement related to an investment of $830 million in Setco Group.
Setco Automotive Limited is a Gujarat-based
Group. IndiaRF is going to invest using a senior debt facility and a 35% equity
stake in SASPL. The proceeds of this investment will be used to promote the
working capital so that the business can grow on the back of an anticipated
recovery in the commercial vehicles market, repay debt facilities, and meet the
demand in the replacement market.
According to Shantanu Nalavadi, Managing
Director, IndiaRF, the company is pleased to enter into a partnership with
Setco Automotive which will help to enhance its market leadership. This
partnership will also drive a twofold strategy to restructure the balance sheet
of the company. The company is focused on providing long-term strategic
solutions that enable an effective turnaround to profitability.
According to Harish Sheth, Chairman &
Managing Director, Setco Automotive, the group is excited to partner with
IndiaRF. He also said that the group is looking forward to leveraging the
global expertise of the company in restructuring and turnarounds. He feels that
this partnership is going to bring significant strategic operational improvement
in both SASPL and Lava Cast.
Setco Group is a technology-driven automotive
company that focuses on the manufacturing and marketing of clutches for
commercial vehicles for OEMs. The group has the largest share of Medium and
Heavy Commercial Vehicles clutch business in India. SASPL has diversified into
the tractor market as well. It is backward integrated as well and manufactures
castings through state of art plants.
Source – Market Screener