ChrysCapital picks minority stake in EMS firm Nash Industries

Nash Industries

• ChrysCapital acquires significant minority stake in Nash Industries
• Nash aims to scale globally amid India's manufacturing growth and trade shifts
• No IPO plans; focusing on global expansion and capability building.

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Private equity firm ChrysCapital has picked a "significant minority" stake in Bengaluru-based Nash Industries in its latest bet on India’s fast-evolving electronics and precision manufacturing space, backing the company at a time when global supply chains are being redrawn amid tariffs, free trade agreements and a renewed push for “Make in India for the world”.

Financial details of the deal were not disclosed. Moneycontrol first reported on September 10 that Nash was in talks with multiples private equity firms including ChrysCapital to raise around $150-200 million at a valuation of around $500 million. Avendus Capital acted as the financial advisor for Nash Industries.

For Nash, the decision to bring in a private equity partner marks an inflection point in a journey that began more than five decades ago as a sheet-metal components business. Nash promoters, chairman Sanjay Wadhwa and joint managing director Sandeep Wadhwa told Moneycontrol in an interaction that the timing reflects both a shift in India’s manufacturing environment and the company’s own readiness to scale globally.

“Manufacturing hasn’t been the favourite sector for several years. Over the last decade, that has changed dramatically,” said Sanjay, pointing to the Make in India push and the global “China plus one” strategy adopted by multinational customers. With multiple growth layers opening up, Nash felt the need for a strong partner to help build global-class systems, processes and leadership and to access international markets more decisively, he added.

Tariffs, uncertainty — and conviction

The investment discussions, however, unfolded against a turbulent backdrop. The prospect of a steep 50 percent US tariff on Indian exports had cast a shadow over several manufacturing deals, with some potential investors stepping back amid uncertainty.

Nash and ChrysCapital chose to stay the course.

Sandeep Wadhwa said the tariff levels being discussed were widely seen as unsustainable and that customers themselves expected a moderation. With alternative sourcing hubs such as China, Vietnam and Taiwan also facing tariff pressures, India’s relative competitiveness remained intact, he said. The eventual reduction of US tariffs on Indian goods to 18 percent, along with the India-EU FTA, has since eased customer decision-making and revived stalled conversations.

Design-led differentiation

Central to the investment thesis is Nash’s design-led manufacturing model, which sets it apart from traditional electronics manufacturing services (EMS) players. The company has built an in-house engineering and design team of around 150 people, working closely with global customers to co-develop products.

A key example is its long-term partnership with Intel, under which Nash designs and manufactures industrial motherboards in India. The collaboration involves a multi-year product roadmap and focuses on industrial applications rather than consumer electronics, the promoters said.

They added that this approach creates a differentiated value proposition that goes beyond cost arbitrage.

Sunrise sectors to drive growth

Nash’s revenue base is fairly evenly split across banking hardware, power solutions, data centre products, renewable energy and automotive, with about 60 percent coming from direct and indirect exports and the rest from domestic demand.

While automotive and banking hardware are mature segments, management sees disproportionate growth coming from data centres and clean energy — both globally and in India. These sectors are expanding rapidly, with customers scaling capacity and deepening supplier relationships.

The company’s customer base largely consists of US-headquartered firms or companies supplying to the American market, though management expects Europe to emerge as a new opportunity following recent trade agreements. Domestic demand is also expected to rise as Make in India gathers momentum across industrial segments.

Capex, consolidation and IPO timeline

On capital allocation, Nash said it remains open to both organic expansion and selective inorganic opportunities, though it has not pursued acquisitions so far. Capital expenditure will be guided by customer requirements, capacity expansion and entry into adjacent segments.

Despite the buzz around EMS and electronics manufacturing in India’s IPO market, the company ruled out any near-term listing plans. Management said the focus remains on building scalable capabilities and a globally competitive institution, with any public market plans emerging as a consequence rather than a driver of strategy.

Nash has grown at a compounded rate of around 25–30 percent over the last few years, with revenues having increased nearly fourfold over the past five years, reflecting a sharp acceleration.