Bain Capital invests in auto parts maker Dhoot Transmission | Company Business News

Bengaluru: US private equity firm Bain Capital had invested an undisclosed amount in Dhoot Transmission Group, an Aurangabad-based automotive component manufacturer.
Bain Capital did not disclose the terms and value of the transaction, which is subject to regulatory approval. A person familiar with the transaction said the investment would value Dhoot Transmission at over $1 billion and that Bain was acquiring a significant minority stake in the company.
A spokesperson for Bain Capital declined to comment on the investment terms.
Bain Capital said in a statement that it will leverage its global automotive expertise to support Dhoot Transmission’s growth and expansion, including through acquisitions and partnerships.
“Their customer-first approach and strong employee engagement has helped the group to build a leading auto-component business and together, we see significant opportunities to expand both organically and inorganically, accelerate exports, and enhance their global footprint,” said Saahil Bhatia, managing director at Bain Capital.
Bain Capital joins a growing list of private equity firms that have ramped up their auto portfolio recently. In August, Carlyle acquired Worldpac, an automotive aftermarket parts provider in North America, from Advance Auto Parts in a $1.5 billion deal.
Mint also exclusively reported in September that Carlyle was building a $400 million platform in India to acquire and merge auto component makers. It was looking to acquire at least two auto parts makers by the end of this financial year and two more in 12-18 months, the report said.
Bain Capital in November announced a strategic partnership with RSB Transmissions, a global manufacturer of automotive, construction, and off-highway equipment systems. Bain’s other investments include Hero MotoCorp, Porus Labs, 360one Wealth, CitiusTech, J.M. Baxi, and Quest Global.
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Dhoot’s diversification and global reach
Founded in 1999, Dhoot specializes in manufacturing wiring harnesses for two- and three-wheelers. The company’s advanced wiring harnesses also power heavy and light commercial vehicles, off-road vehicles, and farm equipment.
Over the past 25 years, Dhoot Transmission also diversified into electronics sensors and controllers, automotive switches, connection systems, and an array of products for electric vehicles, including charging guns, inlets, off-board chargers, wiring harnesses, and assembly of lithium-ion batteries.
Much of this growth was fueled by acquisitions and technology partnerships, the company said.
Dhoot has also expanded internationally and employs over 10,000 people across more than 20 manufacturing facilities in India, the UK, Slovakia, and Thailand.
“Bain’s strategic expertise and integrity make them the perfect partner to help us scale globally and pursue emerging opportunities that deliver value to our customers worldwide,” Rahul Dhoot, founder and chief executive of Dhoot Transmission, said in the statement.
Dhoot has acquired several companies in recent years. It bought Bengaluru-based San Electromec that specialises in wire harnesses and control panels in the highway and railway sector. It also acquired Parkinson Harness Technology, a manufacturer of supplies to makers of commercial, off-road and construction vehicles.
Dhoot also entered into a joint venture with US-based Carling Technologies, a switch-maker for heavy trucks and construction equipment, to make electrical and electronic components in India.
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