TVS Capital is expanding into electronics, defence and precision manufacturing, with plans to invest ₹3–4 billion per company under its latest fund.
Growth-stage private equity firm TVS Capital Funds is sharpening its focus on technology-led manufacturing, with plans to make larger investments in a select group of companies operating in high-growth sectors.
The firm is targeting areas such as precision manufacturing, electronic components for space and defence, smart meters, grid modernisation, specialty vehicles and other advanced manufacturing businesses. According to Krishna Ramachandran, managing partner at TVS Capital Funds, the strategy is to build deep expertise in specific manufacturing segments rather than invest across the broader industrial sector.
TVS Capital is deploying its fourth fund, which has a target corpus of ₹40 billion and is expected to reach nearly ₹50 billion, including co-investments. The firm has already invested around ₹10 billion and plans to deploy the remaining capital over the coming years.
To support this strategy, the firm has been developing sector-specific capabilities and advisory networks, following a similar approach it previously adopted in enterprise technology. Ramachandran said manufacturing sectors supported by government initiatives, particularly defence, space technologies and electronics, present significant opportunities for growth-stage investors.
The firm is also increasing its investment size. Under Fund IV, TVS Capital expects to invest between ₹3 billion and ₹4 billion per company, with an average cheque size of about ₹3.5 billion. It plans to complete two to three investments annually, focusing on businesses seeking capital to scale operations and strengthen governance.
Ramachandran said venture capital firms typically fund startups in their early stages, while growth equity investors provide capital and operational support as companies expand.
He added that exit opportunities for private equity investors have improved in recent years. TVS Capital has completed 37 investments and exited 27, including 14 through initial public offerings (IPOs). The firm is also exploring secondary share sales as an additional exit route, supported by regulatory changes and a maturing investment ecosystem. According to Ramachandran, investors are increasingly evaluating exits based on long-term returns and efficient capital deployment.
