Mumbai, India, April 19th, 2016 — Continuing its approach of investing in unlisted businesses with higher development possible Canbank Venture Capital Fund Ltd. (CVCFL) through 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 contains 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 Elements for end use in Agri-Machinery, Automotives, Railways, Defense and Oil & Gas sectors. The solution variety comprises of gears, axles, shafts, levers, flanges, assemblies, sub assemblies, non gear/spider kits, and so forth.
Explaining the cause for investing in the company, Mr. K Baskaran, Managing Director, Canbank Venture Capital Fund Ltd. (CVCFL) said, “The Organization envisages great company potential in widening its solution and consumer base by undertaking modernization-cum-technology upgradation and expansion at its existing plants. The proposed capex will support the business in meeting the demands of its current customers for the Machined Components. This will improve the value addition of HIM’s operations.” He further added, HIM becoming an established player in the Sector will get the inherent advantages of the same.
The Indian forging business has emerged as a significant contributor to the manufacturing sector of the Indian Economy, estimated at more than USD three billion currently, and approx. 20-25% of the size of the forging industry 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 searching for funds to expand/upgrade our operations to attain the complete capacities of the units and also to improve the Item worth/ branding apart from rising our share of organization from the current customers as effectively adding new Clients.”. He further adds that “HIM is in a position to offer you competitive rates due to its presence in excise-free of charge zone at Baddi (HP) and proximity to major manufacturers of Tractors and commercial vehicles who constitute about 75% of the company’s organization “. The funds from CVFCL shall be deployed towards modernization/further 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 technologies, established top quality processes, and all round engineering capabilities. The Firm is playing a important role in the agri-machinery , automobile and engineering industry. HIM has totally integrated facilities such as in-residence top quality assurance and testing infrastructure.
HIM caters to key OEM Clients which consists of 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 client base and recently the business has added other prominent buyers namely ZF Steering, Brakes India, which will add to the revenues and enhance the bottom-line.
The company is planning an IPO sometime in the next two-3 years. http://www.himteknoforge.com/
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