The Indian company said it plans to use the cash to expand its existing off-road tyre plant in southern India and build a new Greenfield plant in Gujarat.
Warburg teamed up with Ashok Mahansaria and his son Yogesh to buy Israel’s Alliance Tire Company in a $150m deal in 2007.
The private equity firm, which is the majority stakeholder in Alliance, bolted-on US GPX International Tire for $38.3m, expanding the companies Alliance brand to include Galaxy and Primex.
The company, which also has a manufacturing plant in Israel, sells its tyres in more than 120 countries across six continents, and was aiming to exceed a turnover of $500m in 2011.
Last December Warburg announced managing directors Niten Malhan and Vishal Mahadevia, had been named co-heads of the firm’s business in India.
Warburg has invested more than $40bn in about 650 companies since it was founded over 40 years ago.
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