India Resurgence Fund (IndiaRF), a joint venture between Piramal Finance Ltd and Bain Capital, has acquired a majority stake in Fine Edge Engineering Pvt. Ltd., which houses the iron casting and machining business of Ashok Iron Works Group, the companies said in a statement on Friday.
While the companies did not disclose the transaction value, a person with direct knowledge of the matter said the deal is valued at about ₹2,000-2,200 crore.
The acquisition comes as investors increasingly back India's industrial manufacturing ecosystem amid rising global demand for heavy-engine components, localization of supply chains and capacity expansion by original equipment manufacturers (OEMs).
“IndiaRF is excited about the company’s growth potential and sees significant opportunities to further strengthen its capabilities and scale the business,” said Shantanu Nalavadi, managing director of IndiaRF.
"We will support the business through investments in capacity expansion, R&D, new product development and operational excellence, while building on its long-standing customer relationships. The company is also well positioned to benefit from growing demand for high-horsepower engine applications, particularly as the global data centre build-out accelerates," he added.
Manufacturing strength
Founded in 1974, Ashok Iron Works Group manufactures machined iron castings through an integrated casting and machining platform in Belagavi, Karnataka. The company operates four foundries with a combined capacity of 144,000 MTPA and seven machine shops capable of producing 600,000 parts annually.
It manufactures engine blocks, engine heads and transmission housings weighing between 20 kg and 5,000 kg, and is among the few companies capable of manufacturing and machining engine blocks across 1-cylinder to 18-cylinder configurations.
Its products cater to industrial engines, farm equipment and automotive applications, the company said.
Ashok Iron has a diversified customer base spanning global and domestic OEMs and serves as a single-source supplier across several large-engine-block categories. Its competitive position is supported by strong design and manufacturing capabilities, enabling the production of complex large-format castings. Its integrated casting-and-machining platform further strengthens its ability to support customers through new product development and capacity expansion.
Fund strategy
“Over the past four decades, we have built a strong position in the iron casting and machining industry, supported by long-standing customer relationships, strong R&D capabilities and a focus on meeting our customers' evolving requirements,” said Jayant Humbarwadi, joint managing director of Ashok Iron Works Group.
Investec acted as an exclusive sell-side advisor to the Ashok Iron Works Group and its shareholders.
Meanwhile, IndiaRF is currently investing from its second fund, primarily in control situations with a focus on providing capital solutions and driving operational turnaround for businesses to reach their potential.
Its investor base also includes global institutional investors and prominent international and domestic family offices. It targets businesses with strong growth prospects in themes linked to consumption and infrastructure as well as harnessing India’s strong industrial and manufacturing potential.