Canbank Venture Capital Fund Ltd picks up Minority

Stake in Unlisted Rs 200 Cr, M/s Him Teknoforge Ltd

* CVCFL invest Rs. 30 crore in HIM Teknoforge for a minority
Equity stake. * HIM Teknoforge to use funds for its Capital
Expenditure plans.
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
HIMs 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 companys 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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