Mumbai, March 5 -- Italian fasteners manufacturer Fontana Gruppo has agreed to acquire a majority stake in Indian auto component maker Right Tight Fasteners Pvt Ltd as part of its expansion strategy in India. The deal involves Nashik-based Right Tight taking over Fontana's Indian operations, following which Fontana will purchase a 60% stake in the merged entity for approximately Rs10 billion ($114.4 million), according to a source familiar with the transaction.
Fontana currently operates in India through Aurangabad-based BG Fastening and Engineering Industries Pvt Ltd. With this acquisition, Right Tight's management will oversee the combined company, which is set to become one of the largest fastener manufacturers in India. Mid-market investment bank Lodha Capital acted as the exclusive financial advisor to Right Tight for the transaction.
Fontana CEO Giuseppe Fontana stated that the acquisition aligns with the company's long-standing localisation strategy, aimed at building local facilities and organisations in key markets to serve them more effectively. He highlighted India's growing economy and strategic importance as a gateway to the broader Far East market.
Founded in 1979 by Balbir Singh Chhabra, Right Tight Fasteners (RTF) specialises in manufacturing high-strength bolts and nuts. The company supplies major automotive and industrial players, including Tata Motors, Mahindra & Mahindra, Ashok Leyland, Bajaj Auto, TVS Motor, Royal Enfield, and Ola Electric. Operating four factories across India, RTF caters to the automotive, agricultural, industrial, and construction sectors.
In the fiscal year 2023-24, RTF recorded net sales of Rs 7.2 billion ($82.4 million), marking a significant increase from Rs 6 billion ($68.7 million) in the previous year. The company's EBITDA rose to Rs 1.05 billion ($12 million) from Rs 8.1 billion ($9.3 million) during the same period.
Fontana, which has a global presence spanning 32 locations across Europe, the Americas, and India, operates 21 production plants and employs over 5,000 people. The company generates annual revenues of €1 billion ($1.1 billion).
This transaction comes amid increased deal activity in India's auto components sector. Recently, private equity firm Carlyle entered the Indian auto parts market with the acquisition of a controlling stake in a newly merged component manufacturer. Additionally, Bain Capital invested in RSB Transmissions in 2024, while Warburg Pincus acquired a majority stake in another auto parts firm. Fontana's investment in Right Tight further highlights India's growing importance in the global auto components industry.
Published by HT Digital Content Services with permission from Construction World.