U.S. Firm Invests in Indian Supplier Avtec

New York City-based private equity firm Warburg Pincus LLC bought an unspecified minority stake in India's Avtec Ltd., a maker of powertrain and precision engineered auto components.

Terms of the deal were not disclosed. But New Delhi-based Avtec says the purchase will allow it to buy back the 30% stake owned by London-based private equity firm Actis Capital LLP and fund future growth.

Avtec, a unit of conglomerate C.K. Birla Group, collaborates with U.S.-based Allison Transmissions and France's PSA Peugeot Citroen. Avtec's customers include Daimler, Ford, General Motors, Mahindra and Tata.

Avtec is Warburg's second investment in India's auto sector. The firm previously acquired a stake in New Delhi-based castings firm Amtek Auto Ltd.