Warburg Pincus to invest in imperial auto, India’s largest manufacturer of fluid transmission products

Mar 8, 2022

Stone Plant Investments B.V., an affiliate of Warburg Pincus, a leading global private equity firm, has acquired a majority stake in Imperial Auto Industries Limited and its affiliated companies (“Imperial” or the “Group”).

Imperial, founded in 1969, is India’s largest manufacturer of fluid transmission products (“FTP”) for automobile and off-highway sectors. The Group, which generates revenues of approximately Rs. 2,200 crores, offers a diversified product portfolio that includes rubber hoses, metal/nylon tubes and hose assemblies, as well as a rapidly growing portfolio of battery cooling products used in electric vehicles. The Group has over 20 manufacturing facilities across India, Germany, and the US through which it serves industry leading OEMs in both domestic and overseas markets. The Group has a product library of over 25,000 SKUs used across a wide range of FTP applications and seeks to be a one stop provider for all its customers.

As the industry leader in India, the Group is well positioned to capitalize on domestic demand revival.  Further, Imperial is making significant strides in capturing the large export opportunity presented by recent disruptions of US and global supply chains, due to its global cost leadership position and execution track record. Imperial is also playing to the EV trend and developing battery cooling products by leveraging its core capabilities in fluid transmission. The Group will continue to be led by the current CEO and promoter, Mr Tarun Lamba, who will drive the business going forward in partnership with Warburg Pincus.

Mr. Tarun Lamba, Managing Director and CEO, Imperial, said “This is a very interesting time in the auto industry, and we are excited to partner with Warburg Pincus to help us strengthen our position as a leading global FTP components supplier out of India. This investment will help us fund our future growth plans which include capacity expansion, creation of best-in-class facilities for domestic and export clients and acceleration of EV related product development.  Our association with Warburg Pincus should enable us to further attract high quality talent to Imperial and bring new capabilities to the market.”   

Mr. Viraj Sawhney, Managing Director, Warburg Pincus India, said “Imperial has a highly customer centric approach which has helped it become the undisputed market leader in the FTP segment in India. We are impressed by the Group’s long track record of growth, a very diversified and high-quality global customer base and industry leading return metrics. We look forward to supporting Tarun and the team and leveraging the Imperial platform to build a leading diversified Indian auto components player serving both automotive and off-highway markets including electric vehicles.”

EY acted as the sole financial advisor to Imperial.

About Imperial Auto Industries Limited:

Imperial Auto Industries Limited is India’s largest integrated manufacturer and assembler of fluid transmission products. The organization was established as a small-scale enterprise in 1969 in Faridabad, Haryana, India and has now expanded to over 20 facilities across India, Germany and the US. The company serves all the major OEMs in India across passenger vehicles, two wheelers, commercial vehicles, construction equipment and agricultural equipment and has a growing portfolio of marquee export customers. For more information, please visit Imperial Auto.

About Warburg Pincus:

Warburg Pincus is a leading global growth investor. The firm has more than $73 billion in private equity assets under management. The firm’s active portfolio of more than 235 companies is highly diversified by stage, sector, and geography. Warburg Pincus is an experienced partner to management teams seeking to build durable companies with sustainable value. Founded in 1966, Warburg Pincus has raised 20 private equity funds and 2 real estate funds, which have invested more than $100 billion in over 1,000 companies in more than 40 countries. The firm is headquartered in New York with offices in Amsterdam, Beijing, Berlin, Hong Kong, Houston, London, Luxembourg, Mumbai, Mauritius, San Francisco, São Paulo, Shanghai, and Singapore.