Fasten Your Seatbelts! Italian firm to acquire Nashik-based Right Tight Fasteners

In one of the largest foreign investment deals in India’s auto parts industry, Fontana Gruppo is buying a majority in Nashik-based Right Tight Fasteners (RTF) that will give the Italian company a bigger presence in the Asian market. Both companies confirmed the deal to ET but did not disclose the terms. A person aware of the details said Fontana is investing close to Rs 1,000 crore for 60% stake.

The deal has been structured in two parts. RTF is acquiring Fontana Gruppo’s existing operations in India, BG Fastening, after which the Italian company will purchase 60% of the combined entity, the person said. The money has been transferred but some minor approvals are yet to come, he said. RTF’s current management team will run the combined entity in India.

RTF, India’s second-largest producer of automotive fasteners, supplies parts such as nuts, bolts and screws to Tata Motors, M&M, Ashok Leyland, Bajaj Auto, Royal Enfield and Ola Electric among vehicle companies.


The proceeds from the stake sale will be utilised to fund growth plans of RTF. In addition to expanding operations in the Indian market, RTF plans to scale up its international presence by leveraging this partnership with Fontana Gruppo.

Other major foreign investments in India’s auto component sector in the last five years included Cummins Inc's acquisition of a 26% stake in Automotive Axles for about $76 million in October 2022, and Abdul Latif Jameel Company’s purchase of a 35.80% stake in Greaves Electric Mobility for $150 million in May the same year, as per a report that consultancy firm PwC prepared for the Automotive Component Manufacturers Association.

“The acquisition of RTF aligns perfectly with our long-standing localisation strategy, building local facilities and organisations in key markets to better serve those same markets,” Fontana Gruppo chief executive Giuseppe Fontana said in a statement to ET. “India represents a growing economy of significant interest due to its scale and potential, and it serves as a gateway to the entire Far East.”

RTF managing director Balbir Singh Chhabra said the merger would create “substantial synergies” for both parties. “By combining our operations, we will leverage a common customer base and enhance our geographic presence, ultimately resulting in greater operational efficiencies and mutual growth benefits,” he said.

RTF operates four manufacturing facilities in Maharashtra, Tamil Nadu and Uttarakhand, and supplies to automotive, agricultural, industrial, and construction sectors.

“We have expanded our capacity in Pantnagar and Chennai, and in the near future, we plan to establish a facility at Sanand, where we have already acquired land. This expansion strategy is designed to bolster both our domestic and export capabilities,” Chhabra said.

Lodha Capital Markets was the financial advisor to RTF and its promoters, while EY was financial advisor to Fontana Gruppo. The Catalyst, operating adviser to RTF, facilitated the process.

As many as 27 million passenger vehicles, commercial vehicles and two-wheelers were sold in the country last fiscal year. Sundaram Fasteners, RTF and Sterling Tools are the top three companies in the automotive fastener segment. Fasteners are used in every part of vehicles such as doors, seating, steering systems, gears, chassis and axle. Besides, they are used to make capital goods, in development of railways, shipbuilding projects, defence and electronics industry.

Fontana Gruppo operates in 32 locations across Europe, the Americas and India. It generates annual revenue of 1 billion euros.