Catamaran Ventures, the family office of Infosys co-founder Narayana Murthy, has made new investments in India's manufacturing sector by investing ₹290 crore in two engineering companies–TD Power Systems and Vardhman Special Steels. The company's shareholding filings for the quarter ended June 2026 (Q3 FY26) reveal that it remains very much a manufacturing company and is still in the business of building high-quality export-oriented manufacturing businesses that have good long-term growth potential.
The bigger investment was made in TD Power Systems, where Catamaran Ventures acquired a 1.46% stake worth roughly ₹262 crore. The family office also acquired a 1.02% stake in Vardhman Special Steels worth around ₹28 crore.
The two investments, though considerably different in size, show Catamaran Ventures’ preference for companies with strong fundamentals, global partnerships and good engineering capabilities.
TD Power Systems is one of India’s leading producers of AC generators and electric motors for power plants in Bengaluru. It was founded in 1999 and has an international presence with various branches in the USA, Europe, Turkey and Japan as well as a long-standing manufacturing relationship with Toshiba Group for large turbine generators.
The company has been able to produce satisfactory financial performance in the last few years. Revenue has grown at 26 per cent CAGR during the past five years to ₹1,856 crore in FY26, and net profit increased by 40 per cent CAGR to ₹239 crore. Margin has also risen so much to nearly 18 per cent thanks to the operational efficiency.
TD Power Systems is almost debt-free with only ₹18 crore in borrowings coupled with reserves of over ₹1,000 crore. It has a good return on capital employed (ROCE) of 33% and a return on equity (ROE) of 25%. Its earnings growth has pushed up its stock price, more than double in the past year. It is currently on a very premium valuation with a price-to-earnings (PE) ratio of around 75 times (far higher than the industry median).
Catamaran Ventures also invested in Vardhman Special Steels, a manufacturer of special and alloy steel bars primarily used for automotive engine and transmission components. The company supplies leading automobile manufacturers including Toyota, Maruti Suzuki, Hyundai and Hero MotoCorp.
At the same time, Vardhman is strengthening its partnership with Aichi Steel, part of the Toyota Group (a company with a 25% stake in the company, in 2025). A total capital expenditure programme of ₹2,600 crore will also be allocated for the company in the future that will be followed by a new 500,000 tonne steel plant that will be operational by FY30 and a forging facility of ₹475 crore.
Unlike TD Power Systems, Vardhman trades at a relatively moderate PE ratio of around 22, which is largely in line with industry averages, and is an attractive value play for long-term investors.
Market observers say those investments are consistent with Catamaran Ventures’ long-standing investment philosophy. Rather than chasing speculative opportunities, the family office has historically favoured deeply rooted businesses with sustainable competitive advantages and a global export potential and prudent financial management.
TD Power Systems and Vardhman Special Steels fit that profile. They have relatively healthy balance sheets, have established partnerships with leading Japanese companies and operate in sectors that are likely to tap the benefits of India’s growing manufacturing ecosystem.
In fact, the latest investments reinforce Narayana Murthy's confidence in India's engineering and manufacturing capabilities and underline Catamaran Ventures' strategy of backing companies positioned for long-term value creation instead of short-term market trends.
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