RR Kabel logo (Photo: RR Kabel facebook page)
TPG, a global alternative asset firm, announced on Thursday that it has acquired a significant minority stake in R R Kabel
Limited, one of the leading building wires
and low-voltage cables
manufacturers in India, the investor said in a statement. The PE firm is investing over Rs 6 billion, according to sources close to the deal.
and RR Kabel will work to advance the company’s growth by enhancing its product portfolio and furthering its market position in new and existing geographies.
Headquartered in Mumbai, R R Kabel
has emerged as one of the leading and fastest-growing wires
manufacturers in India through its focus on superior product quality and innovation.
Leveraging its robust distribution network and brand strength, the company recently launched an adjacent consumer appliances business that includes fans, lighting equipment, switches, water heaters, and air coolers. Founded in 1999, R R Kabel
was the first company in India to introduce Fire Retardant
and UNILAY conductor technology. The wires
industry in India is estimated at Rs 360 billion.
“In TPG, we have found the right partner to help R R Kabel
reach the next level, as we look to strengthen our brand, expand our product offering, and develop our presence in more markets across India,” said Shreegopal Kabra, Managing Director of R R Kabel.
“Within the building materials segment, we have witnessed a growing consumer preference for established and organized brands like R R Kabel.
This, combined with India’s strong housing market, positions the company well for significant growth,” said Puneet Bhatia, Co-Managing Partner at TPG
Capital Asia. “The founder family has built an impressive portfolio, a resonant brand and a deep distribution network. We look forward to partnering with R R Kabel
in their next chapter.”
TPG’s investment in R R Kabel
builds upon the firm’s strategy of partnering with high-quality companies and founders to help grow and scale their businesses. For more than 15 years, the firm has been partnering with dynamic businesses across India, including the Shriram Group, Manipal Health and Vishal Mega Mart.
Steer Advisors acted as the financial advisor whereas Khaitan & Co acted as the legal advisor to R R Kabel.
AZB & Partners and Cyril Amarchand Mangaldas acted as the legal advisors to TPG
in the transaction. Puneet Bhatia and Mitesh Daga of TPG
will join R R Kabel’s Board of Directors.
R R Kabel
is the flagship company of RR Global founded by the Kabra family. The Group has a footprint across over 80 countries. R R Kabel
was the first Indian cable company to introduce Halogen free wires, produce 100% ROHS & REACH compliant product lines and obtained 27 International product certifications in its endeavour to reach out to the world market.