Poshs Metal Industries is a western India-based auto-grade flat steel processing company. The company has received INR 43 crore investment from Global Supply Chain Support Fund which is managed by Aavishkaar Capital along with KfW (Germany’s state owned development bank).
This is the 7th investment from the USD 220 million (~INR 1,881 crore) fund which supports small and medium enterprises (SMEs) in Asia and Africa that are part of global supply chains and are committed to environmentally sustainable and socially inclusive practices.
Strategic Expansion in Aurangabad
The new funds will be used by Poshs Metal to set up a new steel processing facility in Aurangabad, a strategic location that aligns with its ongoing efforts to scale up and enhance its service capabilities to key Original Equipment Manufacturers (OEMs).
“This is a big milestone in our growth journey as we expand in Aurangabad. The enhanced production capacity will allow us to serve our customers more efficiently while reinforcing our commitment to innovation and quality,” said Asheer Kapoor, Promoter and Director at Poshs Metal.
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Decades of Industry Experience and Partnerships
Founded in 1998 by Ashok Kapoor, Poshs Metal has evolved into a prominent steel service centre catering to Tier I automotive manufacturers. The company maintains a 25-year exclusive partnership with Tata Steel for processing and distribution in Western India and serves a marquee list of clients including Tata Motors, Bajaj Auto, Mahindra, Volkswagen, and Volvo.
Its value-added offerings include:
- Customization of steel blanks to OEM tooling specifications
- In-house packaging
- Scrap processing and compacting for Tata-approved vendors
- Introduction of sustainable steel pallet systems to replace traditional wooden pallets
Investor Confidence and ESG Alignment
Abhishek Mittal, Partner-Credit at Aavishkaar Capital, highlighted Poshs Metal’s strong alignment with the fund’s Environmental, Social, and Governance (ESG) principles:
“The company’s focus on minimizing wastage, efficient logistics, and a customer-centric approach positions them well for growth in a rapidly evolving automotive sector. We are proud to partner with Poshs Metal and look forward to empowering their next phase with non-dilutive, flexible capital solutions.”
The investment is expected to solidify Poshs Metal’s leadership in the Indian auto components ecosystem, particularly as the industry undergoes a shift towards electric vehicles and sustainable mobility.
KfW’s Role in Elevating Standards
Stephanie Lindemann-Kohrs, Global Head of Equity and Funds at KfW Development Bank, emphasized the fund’s mission:
“Our investment aims to enhance environmental and social standards in companies integrated into European supply chains. Poshs Metal’s sustainable operations and adherence to high ESG benchmarks align with these goals.”
KfW’s involvement ensures rigorous due diligence in environmental and labor practices, aligning financial support with long-term impact.
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Aavishkaar Capital: Impact Investing
Aavishkaar Capital, the impact investing arm of the Aavishkaar Group, has a strong history with over USD 1.5 Billion (~INR 12,827 crore) in assets under management across eight funds. Their Global Supply Chain Support Fund is a game changer for transformative SMEs that are part of more sustainable and inclusive supply chains.
Other notable investments from the fund include companies in agriculture, financial inclusion, and essential services such as Electronica Finance, AgroStar, Go Desi, Newtrace, and Zouk.
Conclusion
The INR 43 crore investment in Poshs Metal Industries is a big deal for the Indian steel processing industry. With a focus on innovation, environmental responsibility and operational excellence, Poshs Metal is going to be a key player in shaping the future of Indian and global automotive supply chain.
As they scale up in Aurangabad, expect more capacity, better service and deeper integration with ESG aligned global value chains.