Bengaluru-based Nash Industries India Private Limited is in talks with various private equity firms including The Carlyle Group and ChrysCapital to raise around $150-200 million, people aware of the development
Nash Industries is a contract manufacturing and engineering-solutions provider, which specialises in industrial design, precision engineering, and assembly services. The company serves customers across multiple industries such as automotive, aerospace, off-highway vehicles, banking hardware, display systems, electrical and power protection, healthcare and defense.
The sources cited above added that Nash Industries is looking to dilute a significant minority stake of around 30 percent to 40 percent for the proposed fundraise. Investment bank Avendus Capital is advising Nash on the fundraise, they added.
The company is eyeing an enterprise valuation of around $500 million for the fundraise, proceeds of which will be used for capacity expansion, the sources added.
Emails sent to Nash Industries and ChrysCapital did not elicit a response till the time of publication. Carlyle declined to comment on Moneycontrol’s query.
Growing investor appetite for manufacturing businesses
Nash Industries plans to raise up to $200 million from private equity investors comes as Indian manufacturing businesses are witnessing increased appetite from investors, both in public and private markets, driven by the Indian government’s push to support domestic manufacturing, amid shifting global supply chains.
On the public market side, electronics manufacturing services firm Syrma SGS Technology Limited raised around Rs 1,000 crore through a qualified institutional placement (QIP) in August. In July, CG Power and Industrial Solutions Limited raised Rs 3,200 crore in its QIP.
Earlier this week, ILJIN Electronics India Private Limited, the electronics subsidiary of Amber Group, announced that it had raised Rs 1,200 crore in funding from ChrysCapital and InCred Growth Partners Fund. ILJIN specializes in manufacturing bare printed circuit boards (PCB) and PCB assembly for industries such as consumer durables, automotive, telecom, healthcare, renewable energy, aerospace, defense among others.
Amber Enterprises itself plans to raise around Rs 1,500 crore through a QIP, Moneycontrol reported on July 16.
Nash Industries portfolio
With multiple facilities in Bengaluru, Pune and Chennai, Nash Industries serves diverse sectors including automotive, aerospace, defense, healthcare, banking hardware and electrical systems. Its operations cover tool design, sheet-metal stamping, fabrication, piping, bus bar production and surface treatment, along with dedicated assembly and welding lines.
Beyond traditional manufacturing, NASH has built a design and innovation arm through Nash Tech Labs, which focuses on electronic design, product engineering and integration of Industrial Internet of Things solutions. This division develops products ranging from banking hardware like ATMs and receipt printers to medical equipment such as radiography and radiotherapy devices, as well as connected car technologies and smart manufacturing solutions.
In recent years, the company has also expanded into the energy space. Through its subsidiary Nash Energy, it has set up a 600 MWh lithium-ion phosphate (LFP) cell manufacturing facility in Bengaluru, aimed at supplying EV makers and stationary storage systems. The group has also entered into strategic collaborations, such as the one with Hitachi Power, wherein Nash supplies brushless DC motor controllers.
In FY24, the group reported a consolidated revenue of Rs 1,235 crore, compared to a revenue of Rs 1,116 crore in the previous financial year, according to an April 30 credit rating report by Crisil.
The group’s consolidated profit dropped to Rs 76.6 crore in FY24, from a profit of Rs 93.9 crore a year ago, the Crisil report shows.
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