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Home arrow News arrow Business News arrow Motilal Oswal managed Fund to invest Rs 45cr in ElectroMech Material Handling
Motilal Oswal managed Fund to invest Rs 45cr in ElectroMech Material Handling Print E-mail
Written by Vijay   
Friday, 11 March 2011
Pune: ElectroMech Material Handling Systems (India) Private Ltd will receive an infusion of Rs. 45 crore from the India Business Excellence Fund (IBEF), which is managed and advised by Motilal Oswal Private Equity Advisors Private Limited.

"ElectroMech's vision is to be the largest industrial crane manufacturer in South Asia in the next 5 years in terms of volumes as well as value. As a result, ElectroMech has aggressive plans to become a Rs 7 billion company over the next 5 – 6 years," said Tushar Mehendale, Managing Director of ElectroMech.

ElectroMech is engaged in the business of design, engineering, manufacturing and installations of Electric Overhead Travelling (EOT) Cranes, Electric Wire Rope Hoists, Jib Cranes and Gantry Cranes. Over the past 30 years of its existence, company has supplied in excess of 4,000 cranes.

"The growth would come from expansion of product portfolio and entry into newer geographies like Africa, ME, etc," he said.

ElectroMech has tie-ups with ABUS & Stahl (EX) from Germany, Sibcranex from Russia, and Shuttlelift from USA; to bring in technology, diversify its product offering and increase customer reach. Since 2010, company has also started providing complete after-market sales and services required for cranes, hoists & related material handling systems of any make through its subsidiary Cranedge.

"Over the past 7-8 years, the gross capital formation in the economy as a percentage of GDP has increased from 25% to 36%.  With GDP in nominal terms expected to grow at 13% -14% coupled with  investment of US$ 1 trillion infrastructure spending in the 12th 5-year plan, this would result in substantial demand for all products and the services required for the development and maintenance of infrastructure. This provides a very strong opportunity for companies like ElectroMechwith a credible brand - built over the last 30 years of its existence, strong management team and a world class manufacturing facility," said Raamdeo Agrawal, Chairman of MOPE.

"We have analyzed a very strong inherent value in the company in the long run. One of our business evaluation tools measures if the company has consistently performed over time vs. its peers. We have realized that ElectroMech’s management is intelligent with business widening prospects and is focused to sustain a long-term competitive advantage. Thus we are optimistic about the future because of the strength of the company," he added.

The India Business Excellence Fund (IBEF), a US$ 125 million India focused Private Equity Fund, is being managed by MOPE. IBEF has an investment focus of providing growth capital to mid market companies, typically in the range of US$ 5-15 million, across sectors. The Fund has already made 12 investments across sectors such as food processing, bulk packaging, power transformers and power infra enablers, ITES, financial services, EMS, FMCG, auto components, etc.

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