StanChart PE close to investing $40m in Endurance Systems

MUMBAI: Standard Chartered Private Equity (SCPE) is close to investing about $40m in Pune-based Endurance Systems (India). The unlisted auto component manufacturer is later expected to hit the primary market with its initial public offering (IPO), said sources.

SCPE officials declined to comment, but sources said the deal was arranged by KPMG and would be signed shortly. Endurance officials were unavailable for comment.

Endurance Systems manufactures shock absorbers, front forks and clutch assemblies at its production unit in Aurangabad, and currently supplies its entire production output to auto major Bajaj Auto. The company now plans to begin supplies to other two-wheeler manufacturers in India, and has entered the generic spares market for the purpose.

It has manufacturing facilities at Aurangabad and Pune. “In the next five years, our company will be the largest auto accessories manufacturer in the country with a wide range of products under one roof. We will also be one of the largest exporters of automobile parts. Though multilocational, we shall maintain connectivity for the flow of technical and financial information,” an Endurance System official said.

Endurance is also focusing on the booming exports markets. It has a dedicated plant for exporting front forks in CKD condition, and is currently exporting to European markets. It is also exporting shock absorbers to South-East Asian Countries and Europe.

As part of an expansion plan, a sister company of Endurance has been set up in Aurangabad — Endurance Transmissions India — which recently acquired 15 concurrent licences of SSA Baan. This company manufactures gear boxes for two-wheelers.