Mumbai, India, April 19th, 2016 — Continuing its strategy of investing in unlisted businesses with higher development possible Canbank Venture Capital Fund Ltd. (CVCFL) by way of its Emerging India Development Fund, has picked up a minority equity stake in ‘Him Teknoforge Ltd’ (HIM) for a consideration of Rs 30 crore which involves Rs 7.80 Cr towards partial buyout of Equity shareholding held by IFCI Venture Capital Funds Ltd. HIM is a top manufacturer of Forgings and Machined Components for end use in Agri-Machinery, Automotives, Railways, Defense and Oil & Gas sectors. The product range comprises of gears, axles, shafts, levers, flanges, assemblies, sub assemblies, non gear/spider kits, and so on.
Explaining the reason for investing in the company, Mr. K Baskaran, Managing Director, Canbank Venture Capital Fund Ltd. (CVCFL) mentioned, “The Organization envisages great business possible in widening its item and buyer base by undertaking modernization-cum-technology upgradation and expansion at its existing plants. The proposed capex will aid the organization in meeting the demands of its existing buyers for the Machined Elements. This will boost the value addition of HIM’s operations.” He additional added, HIM being an established player in the Business will get the inherent rewards of the very same.
The Indian forging business has emerged as a main contributor to the manufacturing sector of the Indian Economy, estimated at a lot more than USD three billion at present, and approx. 20-25% of the size of the forging business is attributed to exports. HIM has a very good, progressive management which will take the organization to higher heights.
States Mr. Rajiv Aggarwal, Executive Director, HIM, “We have been hunting for funds to expand/upgrade our operations to accomplish the full capacities of the units and also to enhance the Item value/ branding besides rising our share of organization from the current customers as effectively adding new Buyers.”. He further adds that “HIM is in a position to supply competitive rates due to its presence in excise-free zone at Baddi (HP) and proximity to major companies of Tractors and commercial cars who constitute about 75% of the company’s organization “. The funds from CVFCL shall be deployed towards modernization/extra plant and machinery and tools & dies at its current forging and machining units.
HIM has come to be a name of repute over a period of time for its cutting edge technology, established good quality processes, and overall engineering capabilities. The Firm is playing a substantial part in the agri-machinery , automobile and engineering sector. HIM has totally integrated facilities which includes in-property good quality assurance and testing infrastructure.
HIM caters to major OEM Customers which contains Mahindra & Mahindra Ltd., Escorts Ltd., International Tractors,, Preet Agro, AVTEC, Indo Farm Industries & other folks in Agricultural sector and Ashok Leyland, SML-Isuzu, Bharat Gears, VE Commercials, Oerlikon Group, in Automotive Sector besides Indian Railways & Defense. HIM is persistently expanding its customer base and recently the business has added other prominent consumers namely ZF Steering, Brakes India, which will add to the revenues and enhance the bottom-line.
The company is organizing an IPO sometime in the subsequent two-3 years. http://www.himteknoforge.com/
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