Mumbai, India, April 19th, 2016 — Continuing its strategy of investing in unlisted companies with high growth potential Canbank Venture Capital Fund Ltd. (CVCFL) through its Emerging India Growth Fund, has picked up a minority equity stake in ‘Him Teknoforge Ltd’ (HIM) for a consideration of Rs 30 crore which includes Rs 7.80 Cr towards partial buyout of Equity shareholding held by IFCI Venture Capital Funds Ltd. HIM is a leading 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, etc.
Explaining the reason for investing in the company, Mr. K Baskaran, Managing Director, Canbank Venture Capital Fund Ltd. (CVCFL) said, “The Company envisages good business potential in widening its product and customer base by undertaking modernization-cum-technology upgradation and expansion at its existing plants. The proposed capex will help the company in meeting the demands of its existing customers for the Machined Components. This will enhance the value addition of HIM’s operations.” He further added, HIM being an established player in the Industry will get the inherent benefits of the same.
The Indian forging industry has emerged as a major contributor to the manufacturing sector of the Indian Economy, estimated at more than USD 3 billion currently, and approx. 20-25% of the size of the forging industry is attributed to exports. HIM has a good, progressive management which will take the company to greater heights.
States Mr. Rajiv Aggarwal, Executive Director, HIM, “We have been looking for funds to expand/upgrade our operations to achieve the full capacities of the units and also to enhance the Product value/ branding besides increasing our share of business from the existing customers as well adding new Customers.”. He further adds that “HIM is able to offer competitive prices due to its presence in excise-free zone at Baddi (HP) and proximity to major manufacturers of Tractors and commercial vehicles who constitute about 75% of the company’s business “. The funds from CVFCL shall be deployed towards modernization/additional plant and machinery and tools & dies at its existing forging and machining units.
HIM has come to be a name of repute over a period of time for its cutting edge technology, established quality processes, and overall engineering capabilities. The Company is playing a significant role in the agri-machinery , automobile and engineering industry. HIM has completely integrated facilities including in-house quality assurance and testing infrastructure.
HIM caters to major OEM Clients which includes Mahindra & Mahindra Ltd., Escorts Ltd., International Tractors,, Preet Agro, AVTEC, Indo Farm Industries & others 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 company has added other prominent customers namely ZF Steering, Brakes India, which will add to the revenues and improve the bottom-line.
The company is planning an IPO sometime in the next 2-3 years. http://www.himteknoforge.com/
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