The company said the investments were made through the Corporate Finance Group (CFG), erstwhile Structured Finance Group, of Piramal Finance.
“The CFG has diversified over time both in terms of sector and offerings. CFG is now sector agnostic and offers capital across the risk curve including senior debt, acquisition finance, promoter finance, private equity exits alongside its previous focus on mezzanine investments,” the company said in a statement.
CFG started with focus on infrastructure which includes roads and renewable but over the last two years has funded corporates across cement, entertainment, security management and packaging. It typically targets borrowers who face constraints from traditional channels owing to the current stress in the banking system.
“The auto component space has been on our radar as a focus area for a while now. As is standard practise across our platform, we committed to an in depth study of the sector over the past few quarters which, has culminated in announcing these first two transactions,” said Khushru Jijina, Managing Director at Piramal Finance.
The industry has grown at a 15% compounded annual growth rate over the last decade, which is significantly higher than the OEMs themselves, he added.
RSB Group manufactures auto engineering products such as propeller shafts, gears, axles & machined products for engine components and construction equipment aggregates, Piramal Enterprises stated. It has a strong domestic presence with 11 manufacturing facilities spread across major auto clusters and caters to all the major original equipment manufacturers (OEMs) in the commercial vehicles, passenger cars, construction and farm equipment, it added.
Indo Shell is a two-wheeler focussed precision cast supplier and has a well-diversified customer base. Piramal Enterprises said the company has been consistent in producing high quality engine cylinder blocks at competitive costs and consequently enjoys a healthy order book from marquee two-wheeler OEMs.