The promoters of Chamundi Die Cast Pvt. Ltd., which manufactures components primarily for the auto industry, are exploring a stake sale to raise up to ₹1,500 crore and have appointed KPMG as an advisor for the process, according to two people familiar with the matter.
“The company is looking to raise about ₹1,200-1,500 crore to accelerate growth and professionalize operations,” one of the people cited above said. A second person confirmed that KPMG is advising the company and that several private equity funds have been approached.
“The deal has been in the market for quite some time and had not picked up pace due to global uncertainties. But it has now been relaunched again,” the second person said.
Both people spoke on the condition of anonymity.
If the transaction goes through, it would mark the company’s first external fundraise at a time when several promoter-owned businesses are increasingly turning to private equity investors to accelerate growth, professionalize operations and facilitate succession planning.
Emails sent by Mint to Chamundi’s managing director, Yasin Khan, and KPMG did not elicit a response till the time of publishing.
Manufacturing magnet
The planned fundraise follows rising investor interest in profitable businesses in areas such as manufacturing, driven by the government’s Make-in-India push and the need to create a diversified and resilient supply chain.
Some recent deals include Bengaluru-based semiconductor firm led by TPG Growth and Bain Capital’s investment in Aurangabad-based automotive component manufacturer Dhoot Transmission.
Prior to this, Bain announced a strategic partnership in 2024 with RSB Transmissions, a global manufacturer of automotive, construction, and off-highway equipment systems. In the same year, Mint also reported on in India to acquire and merge auto component makers.
The Chamundi story
Established in 1985, Chamundi is promoted by Ghouse Khan and his two sons, Yasin Khan and Farhan Khan.
The company is known for its high-quality machined aluminium castings and offers end-to-end capabilities spanning design, manufacturing, melting, CNC machining, powder coating and assembly.
With manufacturing facilities in Tumkur, Karnataka, and Ranipet, Tamil Nadu, Chamundi has benefited from a steady flow of repeat orders from major automotive customers and the continued addition of globally reputed clients, Crisil said in a report last year.
Customer stickiness is also high in the industry because switching vendors involves lengthy approval cycles and time-consuming qualification processes.
Growth challenges
However, with around 40% of its revenue coming from the US market, Crisil flagged the possibility of moderate revenue growth and margin pressure due to export tariffs and broader global uncertainties.
The ratings agency also noted that intense competition from original equipment manufacturers and large global auto-component companies could continue to constrain scalability, pricing power and profitability.
Even a slight variation in prices can have a significant impact on operating margins, as procurement accounts for a substantial share of production costs.
Chamundi, which derives nearly 61% of its revenue from its top three customers, posted an operating income of ₹440.69 crore in FY25 as compared with ₹423.26 crore, a year earlier. Its profits narrowed to ₹72.48 crore from ₹92.06 crore in FY24, Crisil said in the report.