A clutch of private equity funds, including Lighthouse Funds, Multiples and Motilal Oswal Alternates, are evaluating a minority stake worth $70-100 million in industrial safety gear maker Karam, according to three people familiar with the matter.
The company has been in the market for some time and EY is advising Karam on the fundraising process, the people said. “The transaction is still undergoing due diligence, and no final decision has been made,” one of the people cited above said.
“The company is seeking an overall valuation of $600 million on the higher end, and this may evolve or change depending on the buyer,” a second person said.
All the people spoke on the condition of anonymity as the discussions remain confidential.
If the transaction goes through, it will mark Karam’s first external fundraise at a time when several promoter-owned businesses are increasingly turning to private equity investors to accelerate growth, professionalize operations and facilitate succession planning.
The planned fundraise comes amid rising investor interest in profitable manufacturing businesses, supported by the government’s Make-in-India push and efforts to build a diversified and resilient supply chain.
Lighthouse Funds, Multiples, Motilal Oswal, Karam and EY did not respond to Mint’s requests for comment till the time of publishing.
Market position
Founded in 1998 by Rajesh Nigam and Hemant Sapra, Lucknow-based Karam manufactures more than 100 products, including personal protective equipment (PPE) such as safety helmets, safety eyewear, hearing protection, face protection, hand protection, protective workwear, safety shoes and a wide range of fall protection equipment. The company serves sectors including healthcare, industrial safety and consumer markets.
Its strong market position is supported by substantial manufacturing capacity, a portfolio of more than 2,600 certified products and a diversified customer base across domestic and international markets.
The company also has a presence in more than 100 countries, according to a Crisil report published earlier this year.
Karam competes with regional players such as Mallcom and Udyogi, as well as multinational giants including 3M, Ansell and DuPont, according to industry reports.
Financial momentum
This has helped Karam deliver a 21% compound annual growth rate in operating income over the three fiscals through FY25. Operating income is expected to grow by another 5-10% in the near term, supported by healthy demand from both export and domestic markets.
The group also has a strong presence as an original equipment manufacturer (OEM) supplier to several safety brands across India and overseas.
Its operating income rose to ₹1,062 crore in FY25 from ₹814 crore a year earlier, driven by volume growth. Net profit, however, declined to ₹87.1 crore from ₹106.9 crore in FY24, according to the credit rating report.
In the first four months of FY26, the company reported operating income of ₹377 crore and is expected to achieve ₹1,100-1,200 crore for the full year, driven by continued demand from domestic and export markets, Crisil said.
Despite its growth, the business remains exposed to cyclicality in end-user industries. Around 50% of revenue comes from exports, while 15-20% of its raw material requirements are imported, providing a partial hedge against currency fluctuations.