Enzen Global Solutions to raise $50 mn

Second round of fund raising could go up to $80 million PE investor Monsoon Capital might look at part-exit

Enzen Global Solutions, the Bangalore-based consulting and services company working specifically in the energy and utilities market, plans to raise $50 million through the private equity (PE) route.

The company, expecting a top line of Rs 500 crore by the end of FY13, a 100 per cent growth compared with last year, is in discussions with a clutch of PE funds for the same, sources said.

Sources also indicated Monsoon Capital, the first PE investor in Enzen Global Solutions, established in 2006, might be exiting partly in the second round of funding.

Satheesh Kumar, chairman and managing director of Enzen Global Solutions, told Business Standard that while the company is looking to raise a minimum of $50 million, it is not in a hurry. “There have been lot of discussions with various investors, but it may take some time to finalise. Monsoon Capital is pretty happy with our performance and they aren’t pushing us to provide them an exit,” Kumar said.

According to investment bankers in the know, the deal is likely to close by the end of this quarter and the round of funding may go up to $80 million. “Energy management is a much sought-after segment and Enzen has developed a good practice. The company focuses on delivering significant value to all the stakeholders through redesign of value chain inefficiencies,” said an investment banker.

Enzen’s business portfolio includes the full range of consulting, strategy formulation and design, development and implementation services, process optimisation with value addition, focused on enhancing productivity at optimised cost. The spectrum of offerings include infrastructure development, loss reduction, revenue enhancement, IT solutions, system integration, audits, asset management, consultancy in policy and planning, project management, regulatory compliance, environmental management, besides others.

Enzen derives an equal share of revenues from India and Europe, while the US market is being opened up. “In the power sector, we were focusing on driving efficiencies in the distribution system, but now we are expanding into efficient generation solutions as well by acquiring a niche company in the US,” Kumar added. Enzen now has 75 utilities as customers globally for its range of consulting solutions.

Enzen works on a 15-18 per cent operating margins and employs about 3,000 consultants. According to Kumar, the next big revolution will be in the world of energy, as energy grids “are poised to get smart and interactive”. He added new nano sources throw up tantalising possibilities. “New methods are helping to offer smooth and uninterrupted quality power,” he said.

Also emerging on the horizon, according to him, are new ways of developing and accessing energy sources. “As the world gears up to make the transition to clean and green energy, the entire business model is poised for a make-over. It becomes imperative to know how best to deploy technology for optimum and sustained results. It is at this sweet spot we offer our consulting services,” Kumar said.