An Industrial Manufacturing-Capital Goods (Industrial Equipment and Assembly Machinery) entity from India is looking to raise strategic funding.
BUSINESS BRIEF
- The company is a registered MSME that was Incorporated in 1991. They are involved in the manufacturing of CNC Machines that are in turn used to manufacture precision parts required for several sectors (viz. automotive, defense, aerospace, electronics, etc.).
- The company is showing steady growth and strong market presence due to its superior in-house IP and timely technological partnerships with an Italian CNC major in 2008 and JV with a Czech CNC company in 2016. The peak revenue for the company stood at Rs. 41.8cr in FY 2016-17.
- There was a need to increase capacity to cater to the increasing orders, due to which, between the period of 2017-19, GM invested around Rs. 17cr in increasing capacity and in-house R&D – this increased capacity by 347% to potentially achieve a peak revenue of 432 crores.
- The company still has strong goodwill in the market and without any marketing and sales effort, they currently have active ‘Purchase Orders’ worth Rs. 15cr.
- The domestic sales pipeline is of Rs. 25cr+ but due to lack of working capital, the company is unable to take these orders.
- In addition to the above, they have a confirmation from a US-based buyer/distributor that is seeking an agreement from GMPL to deliver around 120 machines annually with an approximate value of $10mn+ per year.
- Given the strong interest and the active orders in hand, the company is seeking an infusion of capital of min Rs. 15-18 cr to start delivering the orders and be in a position to take additional work.
Proposal
Capital Requirement
INR 15 Cr
Funding Route
Private Equity, Strategic Investor
Extent Of Dilution
Upto 26 %
Share Holding Pattern
Promoter Group
100%
Non-Promoter Share Holder
0%
Reason For Raising Capital
Inorganic Growth
Business Operation Information
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