Webasto plans $500M IPO for India unit
What's the story
German car parts supplier Webasto is planning an initial public offering (IPO) for its Indian subsidiary, Webasto Roofsystems India. The company is looking to raise between $400 million and $500 million through the proposed public issue, which could value the Indian unit at around $2 billion, as per Economic Times. The move comes as part of Webasto's strategy to capitalize on the growing demand for sunroofs in India's booming automotive market.
Market dominance
Webasto's presence in India's automotive market
Webasto, a global leader in openable roof systems, has established a strong foothold in India. The company serves major automakers such as Mahindra & Mahindra, Tata Motors, Hyundai Motor India, and Kia India. The growing demand for sunroof-equipped passenger vehicles has prompted Webasto to expand its manufacturing capacity in the country.
Expansion plans
New plant in Haryana to boost production
Along with its existing plants in Pune and Chennai, Webasto is setting up a new facility in Haryana. The plant, which will be located between Manesar and Kharkhoda, is expected to have an annual capacity of around 500,000 units. This expansion comes as a response to the continued growth of sunroof sales in India.
Financial growth
Strong financial performance of Indian subsidiary
Webasto Roofsystems India reported a 31% jump in revenue to ₹946.5 crore in FY25, up from ₹720 crore in FY24. The company also posted a net profit of ₹31.4 crore, compared to a loss of ₹9.1 crore last year. The firm has invested over $110 million in its Indian operations since 2019 and plans to invest a total of $174 million by 2030.
Global performance
Webasto Group's global performance in FY25
The Webasto Group reported a global revenue of $4 billion in FY25, a decline of 7.4%. The roof systems business remained the largest segment, contributing about $3 billion or 79% of the total revenue. Battery systems and Thermo Management contributed around $300 million (8%) and $500 million (13%), respectively.
Industry trend
Growing trend of IPOs in India's automotive sector
Webasto's proposed IPO comes as a part of a growing trend in India's automotive sector. Component manufacturers and vehicle technology companies are looking to tap into strong domestic demand, rising exports, and increasing investor interest in manufacturing businesses. Private equity firm Carlyle is also planning a $500 million IPO for its Indian automotive platform Highway Roop Precision Technologies by mid-2027.