The Hindu Business Line : Duke Equity plans to raise $300 m for Indian auto sector

Duke Equity, a London-based private equity fund, is looking at raising $300 million for investments in the automotive sector in India in 3-5 years. In the first year, the company is seeking to raise $20-50 million.

The company has already invested in Pune-based Autoline Industries, Noida-based Harig Cranskshafts and in the Indian arm of Belgium-based Stokota.

Speaking to newspersons, Mr Gopal Patwardhan, Managing Partner, said it would be investing $1.8 million in Stokota's Indian arm for setting up a facility at Chakan in Pune. The total project cost is about $5.5 million, the rest being contributed by Stokota Belgium and its Indian arm.

The Indian arm has licenses for sales of all 55 products of Stokota and has already begun commercial operations of the trailers and trailer tippers business in the country.

Currently, the tippers and tipper trailers are being assembled at the Autolines Industries facility.

Stokota would complete the product with their hydraulics and finishing touches.

The joint venture for the contract manufacturing between Autolines and Stokota commenced in January this year and commercial production of tippers and tipper trailers began in June.

Some 100 vehicles have been sold so far, fetching revenues of Rs 8 crore. Stokota is looking at making India the production hub for its global requirements by 2009.

Autolines investments

Commenting on the other investments, Mr Patwardhan said $9 million has been invested in Autolines over the course of two years.

Autolines is also entering the market with an IPO slated for early January. He said that the amount has been locked in for a period of three years; the fund would not exit the company.

Autolines is a supplier of sheet metal components and sub-assemblies and manufactures various parts for passenger cars, sports utility vehicles, commercial vehicles, tractors and two- and three-wheelers.

Mr Patwardhan said Duke has invested $1.5 million in Harig Crankshafts and kept aside $4.5 million for additional investment.

Harig is a manufacturer of crankshafts and stub axles for commercial vehicles and tractors.

It has a current annual capacity of 1,80,000 crankshafts and 1,20,000 stub axles.

Duke's current plan is to help Harig serve the aftermarkets in Europe and the US, which are pegged at $8 billion.

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