Canbank Venture buys stake in Him Teknoforge for Rs 30 cr

Canbank Venture Capital Fund has picked up a minority equity stake in Chandigarh-based Him Teknoforge for a consideration of Rs 30 crore.
The VC firm acquired the stake through its Emerging India Growth Fund.
"Continuing our strategy of investing in unlisted companies with high growth potential, through our Emerging India Growth Fund, we have picked up a minority equity stake in Him Teknoforge (HIM) for a consideration of Rs 30 crore. This includes Rs 7.80 crore towards partial buyout of equity shareholding held by IFCI Venture Capital Funds Ltd," Canbank Venture Capital Fund Managing Director K Baskaran told reporters here.

HIM is a leading manufacturer of forgings and machined components for end-use in agri-machinery, automotives, railways, defence, oil & gas sectors. The product range comprises gears, axles, shafts, levers, flanges, assemblies, sub assemblies, non gear/spider kits, among others.
The company envisages good business potential in widening its product and customer base by undertaking modernisation-cum-technology upgradation and expansion at its existing plant at Baddi, Himachal Pradesh. The proposed capex will help the company in meeting the demands of its existing customers for the machined components, Baskaran said.
The forging industry, estimated at more than USD 3 billion currently, has emerged as a major contributor to the manufacturing sector of the Indian economy. Approximately 20- 25 per cent of the size of the forging industry is attributed to exports.

"We have been looking for funds to expand and upgrade our operations to achieve the full capacities of the units and also to enhance the product value and branding besides increasing our share of business from the existing customers as well adding new customers," HIM Executive Director Rajiv Aggarwal said.

The funds from Canbank Venture will be deployed towards modernisation and additional plant and machinery and tools at our existing forging and machining units at Pithampur (MP and Uttarakhand, Aggarwal said.
The company is playing a significant role in the agri- machinery, automobile and engineering industry. HIM caters to major OEM clients which includes Mahindra & Mahindra, Escorts Ltd and Ashok Leyland.

The company is also looking at raising money through an IPO in the next 2-3 years to fund its expansion plans, Aggarwal said.