Global Supply Chain Support Fund, managed by Aavishkaar Capital, a pioneer in impact investing and part of the Aavishkaar Group, today announced an investment of INR 43 Crores ($5 million) into POSHS Metal Industries Private Limited (Poshs). This marks the seventh investment from the Fund, which was established in partnership with KfW, the German state-owned development bank.
POSHS Metal Industries, founded in 1998 by Mr. Ashok Kapoor, specializes in the processing of auto-grade flat steel and serves some of the leading multinational corporations in the automotive sector. Headquartered in Western India, Poshs Group has maintained a longstanding partnership with Tata Steel for over 25 years as its exclusive and authorized steel processing and distribution partner in the region.
The Global Supply Chain Support Fund, a USD 220 million initiative from Aavishkaar Capital, focuses on supporting SMEs in Asia and Africa that are deeply integrated into global supply chains and are committed to environmentally sustainable and socially inclusive practices. The Fund aims to deliver strong financial returns alongside a positive social impact.
Commenting on the investment, Asheer Kapoor, Promoter & Director, POSHS Metal, said,
“This funding marks a crucial step in our growth journey as we expand our footprint in Aurangabad. The enhanced production capacity will allow us to serve our customers more efficiently while reinforcing our commitment to innovation and quality. The support from our investors reflects their confidence in our vision, and we look forward to accelerating our expansion plans.”
Abhishek Mittal, Partner-Credit, Global Supply Chain Support Fund, Aavishkaar Capital, shared,
“We are excited to invest in Poshs Metal Industries and support their next phase of growth through a state of the art processing facility in Aurangabad to further establish themselves as a leading value-added steel processing business for Western India. The Indian auto sector is expected to see a mix of opportunities and challenges with the advent of electric vehicles, sustainable mobility and technological advancements, while also facing increasing competition, global headwinds and rising costs. The company’s strong focus on Environmental, Social, and Governance (ESG) practices through minimum wastage and efficient logistics and a customer-centric approach to deliver quality products on time at a competitive price would be their key success driver going forward. Through the Global Supply Chain Support Fund, Aavishkaar Capital is proud to partner with POSHS Group, and look forward to empowering more such businesses with non-dilutive and flexible financial solutions that are better aligned with their growth ambitions.”
Stephanie Lindemann-Kohrs, Global Head of Equity and Funds, KfW Development Bank, emphasized the Fund’s environmental and social objectives, stating,
“The primary aim of KfW’s investment into the Global Supply Chain Support Fund on behalf of the German Government is to enhance environmental and social standards in companies that are integrated into European supply chains. With an increasing requirement for reduction in carbon footprint and improved labor conditions in automotive manufacturing, it is imperative to uphold fair labor practices and high environmental standards. The investment procedure of the fund adheres to rigorous environmental and social due diligence, thereby setting elevated standards for its investees.”
This investment will enable POSHS Metal to establish a state-of-the-art processing facility in Aurangabad, enhancing its production capacity and supporting its expansion strategy. The move is aligned with the Fund’s commitment to backing enterprises that prioritize ESG principles while scaling their operations.
Through this partnership, Aavishkaar Capital continues to strengthen its mission of providing non-dilutive and flexible financial solutions to businesses that contribute meaningfully to sustainable global supply chains.