IndiaRF buys machine castings maker Fine Edge for Rs 2,000 cr

New Delhi: IndiaRF, backed by Piramal Finance and Bain Capital, has acquired a majority stake in Belagavi-based machine castings maker Fine Edge Engineering for about ₹2,000 crore, according to people familiar with the matter. The transaction is among the largest private equity investments in this segment of the engineering industry.

Fine Edge Engineering manufactures engine blocks, engine heads and transmission housings for automotive and industrial applications.

Its end-customers include global generator-set makers such as Cummins and farm equipment manufacturers including Escorts and Caterpillar.


IndiaRF managing director Shantanu Nalavadi confirmed the acquisition but declined to disclose the financial details.

"We are excited about the company's growth potential and see significant opportunities to further strengthen its capabilities and scale the business," said Nalavadi.

Engine blocks, engine heads and transmission housings are produced from metal castings manufactured in foundries. Fine Edge Engineering operates four foundries in Karnataka.

The acquisition comes amid a boom in data centre investments, which is expected to increase demand for diesel generator sets that provide uninterrupted backup power.

"We will support the business through investments in capacity expansion, R&D, new product development and operational excellence, while building on its long-standing customer relationships," said Nalavadi.

Fine Edge Engineering is part of Ashok Iron Works, promoted by Jayant Humbarwadi.

Investec was the exclusive financial adviser to the promoters of Fine Edge Engineering.

The company generates earnings before interest, tax, depreciation and amortisation (Ebtitda) of as much as ₹300-350 crore, according to people familiar with the matter.