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TA Associates completes minority investment in Tega Industries Ltd

TA Associates, a leading growth private equity firm, today announced it has completed a minority investment in Tega Industries Ltd, a designer and producer of consumables for the mining industry. Terms of the investment have not been disclosed.

Headquartered in Kolkata, India and founded in 1976, Tega offers a range of products and services used in mining, mineral processing, screening, grinding and material handling. Tega’s primary offering is customized wear-resistant mill liners that are used for grinding and sizing of mineral ores. Tega has manufacturing facilities in India, South Africa and Chile, with sales and support offices in 14 countries and customers in 62 countries.

“We’re delighted that TA Associates is investing in Tega at such an exciting time for the business,” says Madan Mohanka, CEO and Founder, Tega Industries Ltd. “We are pursuing a variety of growth strategies, including increasing share in existing markets, entering new geographies and expanding our range of offerings. We are confident TA will prove a valuable partner in these endeavors.”

Dhiraj Poddar (pictured), Director, TA Associates Advisory Pvt Ltd, says: “We are pleased to invest in a company with a record of impressive growth and profitability, and a stable and experienced management team. Tega is a recognised leader in rubber mill liners, which are a critical component in driving efficiency, saving costs and determining overall product quality. The company has embarked on an acquisition-led growth strategy and, given its well-established and highly reputable brand, we anticipate continued global opportunities for Tega.”

The overall mill liner industry is estimated at more than USD $1 billion and has historically been dominated by steel liners.

“Rubber liners offer several advantages over steel, including a significantly lower overall cost, and therefore continue to gain market share,” says Naveen Wadhera, Director, TA Associates Advisory Pvt Ltd. “The remainder of the mining consumables market offers additional opportunities for Tega, which is increasing its addressable market through the introduction of new ancillary products. With a well-earned reputation for product quality and durability, and after sales service, Tega has established a strong presence in a healthy marketplace and is well positioned to continue its impressive growth.”

TA Associates has more than four decades of investing experience, focusing on profitable growth companies. TA’s previous investments in India include Dr Lal PathLabs, GlobeOp Financial Services, Idea Cellular and Micromax Informatics Limited.

Khaitan & Co and Goodwin Procter LLP provided legal counsel to TA Associates, and Argus Partners served as legal counsel to Tega. Avendus Capital Private Limited provided financial advisory services to Tega. TA Associates Advisory Pvt. Ltd. provided advisory services on the investment.

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