Mumbai: Piramal Alternatives has invested ₹125 crore in JRG Automotive Industries India Pvt. Ltd., with the funding aimed at expanding manufacturing capacity, diversifying the auto component maker’s product portfolio and supporting strategic growth initiatives.
The investment was made through Piramal Alternatives’ India Credit Opportunities Fund II, or PCF II, and represents the fund’s fourth transaction, the fund management division of the Piramal Group said on Tuesday.
JRG Automotive manufactures powertrain-agnostic injection-moulded products for two-wheelers and passenger vehicles. The company plans to use the capital to strengthen its infrastructure and manufacturing capabilities while pursuing both organic growth and strategic acquisitions.
PCF II is a sector-agnostic fund focused on high-growth, mid-market companies, typically with an investment horizon of three to four years.
Piramal Alternatives said its first fund, with a corpus of ₹2,100 crore, has been fully invested across 17 companies. It has successfully exited 13 of those investments.
“We are excited to partner with JRG’s strong management team in their growth journey. JRG’s longstanding relationships with leading automotive OEMs, its track record of increasing content per vehicle, commitment to quality, and strategic expansion into new product categories position it well for sustained growth,” Kalpesh Kikani, CEO of Piramal Alternatives, said.
Founded in 2012, JRG Automotive operates eight manufacturing plants and supplies injection-moulded plastic components to automotive manufacturers across the two-wheeler and passenger vehicle segments.
The company has also formed strategic joint ventures with global automotive component manufacturers, allowing it to enter new product categories and expand the range of components it supplies to original equipment manufacturers.
JRG has sought to increase the value of components supplied per vehicle while securing orders for new vehicle platforms — an important strategy in a components industry where getting more parts into each vehicle can be just as valuable as putting more vehicles on the road.
“India’s automotive industry is entering a decade of strong growth across domestic and export markets. We are delighted to partner with Piramal Alternatives, whose investment is a strong endorsement of our vision. It enables us to scale our capacity, infrastructure, and manufacturing capabilities. This funding will accelerate our growth, both organically and through strategic acquisitions, as we build a world-class auto components supply chain to meet rising global demand and better serve our OEM partners,” Pawan Goyal, MD, JRG Automotive Industries India Private Limited, said.
Piramal Alternatives provides investment solutions across different parts of the capital structure and works with companies seeking funding for expansion and other strategic requirements.
The transaction comes as Indian auto component manufacturers increase capacity, widen their product portfolios and pursue global supply opportunities. For JRG Automotive, the ₹125-crore investment provides additional financial room to scale its operations while navigating an industry being reshaped by new vehicle platforms, evolving technologies and increasingly demanding global supply chains.
