The company has recently raised $10-million from private equity firm, FirstRand (Ireland) PLC, to fund its expansion programme. FirstRand is the private equity arm of South Africa-based Rand Merchant Bank (RMB). The company's manufacturing plant is located at the Kandla Special Economic Zone in Gujarat and the expansion would take about 8-10 months to be complete. "At present, India has two-three major players in the CNG and industrial cylinder space. Once the expansion is completed, we will be one of the largest players in India," he said.
Worldwide, there are 10-12 companies manufacturing CNG and industrial cylinders, and Faber is the biggest player in the market. Today, with global warming a major concern coupled with steep crude prices and air pollution, CNG was a right substitute for oil, he said. "It helps to reduce air pollution and hence, the demand for CNG as well as CNG cylinders is increasing," he said adding that the company was confident of capturing a healthy market share.
On Lizer's marketing strategy, Ramsinghani said the company would go in for direct marketing. It has already appointed dealers in various regions. "The company also plans to target OEM automobile manufacturers in India," he said.
It is present in the export market and presently exports cylinders to the Middle-East and CIS countries. "We plan to tap more markets such as Malaysia, Bangladesh, Thailand and Indonesia," he said. Lizer's cylinders, made from seamless steel pipes, are of high quality, he added. The company's products find usage in cars, buses, trucks, three-wheelers and other types of vehicles.
Ramsinghani said the company would cater to the industrial segment as well, offering high-pressure industrial gas cylinders for needs of industrial gases like oxygen and hydrogen, amongst others. Its cylinders are also used in defence, hospitals and fire fighting.