India's leading private

Frontline Strategy's IIGF invests in Railways and Auto OEM DTL Ancillaries

  • DTL, a custom roll forming company, is a leading supplier to Indian Railways and the Indian Automotive sector
  • DTL is led by an extraordinary founder, with a very strong operations team - the Company has been growing at 30%+ over the past 5 years
  • IIGF has made a total investment commitment of US$9.0m

Mauritius, 19 March 2012: India Industrial Growth Fund (IIGF), a private equity fund managed by Frontline Strategy Limited, has made a new investment in DTL Ancillaries Limited (DTL), a customized roll forming company, based out of Pune, Maharashtra. DTL was founded by Mr. Vijay Mohan Jain, who is currently the Chairman and Managing Director of the Company and is actively involved in extending the capabilities of the Company. He is ably supported by a very strong executive and operations team - jointly, they have helped the Company grow at more than 30%+ pa over the past 5 years. The Company is a leading supplier of roll formed parts and fabrications to the Indian Railways - recently, it became a Part-I supplier to the Railways. It is also a leading supplier, in its space, to the Indian Automotive Sector.

IIGF has committed to invest a total of US$9.0m in the Company in two tranches. The first tranche of investment has been completed.

Commenting on the investment, Mr. Vijay Mohan Jain, Managing Director, DTL said "It was an enriching experience for me and my team to work with an experienced Private Equity Investor Team of Frontline, lead by Mr. Atim Kabra and Mr. Supratim Basu. I can visualize that this capital infusion will provide the correct proportion of Debt-Equity so as to propel DTL into further growth, which we all at DTL like to keep close to 35% CAGR as in the past 5 years or so. I also extend my thanks to Yes Bank Limited for being an exclusive advisor to DTL on this transaction".

Atim Kabra, Director, IIGF said "DTL has all the ingredients necessary for a successful company viz. a visionary and hard working leadership team, technical capabilities, diversified product mix, innovative products and valued customer relationships. We hope to contribute our bit in assisting the company achieve greater heights."

Supratim Basu, Director, Frontline Venture Services said "It has been a pleasure working with the DTL Team in the run up to this investment - and I look forward to working very closely with the Company over the next few years, as well. DTL is virtually the perfect blend of risk-adjusted, growth investment that we seek in the manufacturing space in India, and I am very happy to be part of their journey going forward. "

YES Bank was the Sole Advisor to DTL Ancillaries for this transaction. Protiviti and J Sagar Associates were advisors to IIGF for the transaction..

About DTL Ancillaries DTL Ancillaries Ltd, incorporated in 1996, is one of the leading players in manufacturing customized Cold Roll Formed (CRF) sections and load body fabrication for Railways and Automotive sectors. The Company is promoted by a first generation entrepreneur having over 40 years of experience in this business and strong relationships in the Railway and Auto industry.

DTL has indigenously developed substantial technology expertise for manufacturing components using the CRF process and over the years has graduated to being a preferred supplier for CRF components across industries. The Company has a high quality and well reputed client base to which it supplies CRF sections and assemblies for railway wagons & coaches and load bodies and allied fabrication and panels for commercial vehicles, made of MS and SS. The Company has 3 manufacturing facilities in Pune, Maharashtra and is in the process of setting up its 4th facility, with a combined area of 300,000 sq ft for manufacturing CRF and Flexible CRF sections and assemblies, sheet fabrication and metal finishing products.

About Frontline Strategy Founded in 2000, Frontline Strategy Limited is an asset management company with a focus on private equity investments. Prominent investments of Frontline Strategy's first fund vehicle, Strategic Venture Fund (Mauritius) Ltd, include: CBay Systems & Services, Inc, an early-stage Frontline Strategy investment, and the largest provider of outsourced knowledge processing services for the global healthcare industry, after the acquisition of MedQuist, Inc; Astra Microwave Products, a manufacturer of high-end microwave and RF-based components for defense, space and civil telecom applications; Titagarh Wagons, India's leading private manufacturer of railway wagons; Alfa Transformers, a manufacturer of power, distribution and furnace (specialty) transformers; Shilpa Medicare, among India's leading specialty pharmaceutical manufacturers, primarily focusing on custom synthesis and oncology APIs.

IIGF's other investments are Krishna Saa Fabs Private Limited (a galvanizing/structural engineering firm), Shriram SEPL Composites Private Limited (a manufacturer of glass reinforced polyester composite pipes) and Tejas Networks Limited (an IP-based optical networking products company).

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