Billionaire N R Narayana Murthy's family office, Catamaran Ventures, is making significant strategic moves to capitalize on India's manufacturing revolution. The investment firm plans to deploy substantial capital in growth-stage precision manufacturing companies, betting big on the country's evolving supply chain ecosystem.
Patient Capital Strategy for Long-Term Growth
Deepak Padaki, President at Catamaran Ventures, revealed the firm's investment thesis in a recent interview. "Our thesis is based on the view that over the next 5-10 years in India, from a wealth and job creation perspective, the country needs to develop its supply chain for precision manufacturing," Padaki stated. This long-term perspective distinguishes Catamaran from typical venture capital funds that seek exits within five to six years.
The family office recognizes that manufacturing businesses, particularly in precision engineering, require longer gestation periods of 10-15 years to achieve meaningful scale. "We're more mid-market private equity when it comes to manufacturing. We thought about how we as a family office can put money into companies that is patient capital," explained Padaki, highlighting their distinctive approach.
Target Sectors and Investment Parameters
Catamaran has identified several high-potential sectors within manufacturing for focused investment. Their priority areas include:
- Aerospace components and defense manufacturing
- Electric vehicle supply chain including motors and electronic systems
- Medical devices and healthcare equipment
- Semiconductor companies and data center infrastructure
- Battery recycling for recovering rare earth materials
The investment firm is prepared to write cheques ranging from ₹50 crore to ₹250 crore, with exceptional cases seeing commitments up to ₹400-500 crore. This substantial capital deployment targets mature businesses that have achieved some scale and are ready for global expansion.
Current Portfolio and Pipeline Assessment
Catamaran's existing manufacturing investments demonstrate their strategic focus. The firm has backed Aequs, a precision aerospace component manufacturer, and SEDEMAC, a mechatronics maker. Both companies are now heading for initial public offerings, with SEDEMAC planning to raise up to ₹1,000 crore through an offer for sale.
Despite their enthusiasm for the aerospace sector, Padaki acknowledged that the pipeline remains thin beyond Aequs. However, the electric vehicle space shows more promising activity. "There's a lot of small component manufacturers in places like NCR (Delhi region) and Coimbatore that are promoter-owned who are switching to EVs because we already have a strong base in auto component manufacturing," he observed.
In the semiconductor domain, Catamaran is navigating what Padaki describes as a "dumbbell" scenario - with numerous early-stage startups on one end and massive fabrication plants requiring enormous investments on the other. The firm is strategically positioned to target companies in the middle ground seeking growth capital support.
Manufacturing Momentum and Valuation Realities
The broader investment landscape reflects growing confidence in India's manufacturing capabilities. Recent months have witnessed significant deals, including VIP Industries raising $206 million led by Multiples, Euler Motors securing $75 million from GIC and British International Investments, and Scimplify raising $40 million in a deal led by Accel and Omnivore Partners.
Padaki emphasized the need for realistic valuation expectations in the manufacturing sector. "Valuations need to see a shift. The reason many of these companies don't get high valuations is because people don't understand that these are ROCE businesses and not growth-at-all-costs businesses," he noted, referring to Return on Capital Employed as a key profitability metric.
Industry experts echo this optimism. Koushik Bhattacharyya, Managing Director and Head of Industrials Investment Banking at Avendus Capital, highlighted structural drivers including "import substitution, rising domestic consumption, and India's emergence as an export hub" for sectors like chemicals, auto, engineered solutions, aerospace, and defense.
Looking ahead to 2026, Catamaran maintains its selective investment approach, typically evaluating 10-12 companies to make 2-3 investments annually. This disciplined strategy, combined with their patient capital philosophy, positions the firm to play a significant role in shaping India's manufacturing renaissance while generating substantial returns for the Murthy family office.
