Automotive components company RSB Transmissions has acquired Setco Auto Systems, a clutch technology company and subsidiary of Setco Automotive (SAL). Setco Auto Systems supplies clutch systems for medium and heavy commercial vehicles, as well as aftermarket drivetrain solutions.

Backed by Bain Capital, RSB Transmissions stated that this acquisition is a step in its strategy to enhance its presence in the automotive components sector and build a systems-led, multi-product platform.

In March 2026, the Setco Automotive board approved the transaction, which involved the sale of 41% (447,847 equity shares) of Setco to RSB for Rs185 crore. RSB is acquiring the remaining 24% (262,153 shares) for a consideration of up to Rs 255 crore in FY27.

The Setco promoters have signed a non-compete clause, which prohibits them from engaging in any business that competes with Setco Auto for a period of three years. In return, RSB will pay Rs 70 crore as non-compete consideration. The promoters will stop using the Setco brand and change their company name to Shilayan Industries.

RSB will acquire the entire stake of Setco Auto Systems held by the India Resurgence Fund – Scheme 1 and Scheme 2 (IndiaRF), which accounts for 35% of the paid-up share capital.

R.K. Behera, chairman of RSB Group, said the compelling strategic fit in operational capabilities, product offerings, and customer reach, noting multiple opportunities to drive synergies and create sustainable value for all stakeholders. He pointed out that Setco Auto’s expertise in clutch systems and its strong presence in both OEM and aftermarket segments complement RSB’s platform. The existing management team, led by CEO Neeraj Singhal, will continue to lead and develop the business, as stated by S.K. Behera, vice chairman and managing director of RSB Group.

Saahil Bhatia, a partner at Bain Capital, noted that India’s commercial vehicle sector continues to present attractive opportunities for platform building, driven by increased formalisation in the aftermarket and greater localisation in the OEM supply chain.

RSB Transmissions specialises in drivetrain systems for commercial vehicles, passenger cars, as well as construction and farm equipment, operating 18 manufacturing plants in India and two in Mexico.