Peepul invests $15 mn in Universal Power

Peepul Capital, a private equity fund with $325 million corpus, has invested $15 million in Universal Power Transformers, a manufacturer of power equipment based in Bangalore.

UPT is utilising the invested funds for expansion of its existing facilities, for shoring up working capital and for acquiring Moloney Electric Inc.

UPT's product range includes transformers, switchgears, batteries and unitised substations. The company manufactures distribution and medium range power transformers up to a rating of 30 MVA.

The company had recently entered the projects business. UPT has marquee customers like ABB, Larsen & Toubro, Kirloskar Group, ISMTL, BHEL, Infosys, Wipro, as well as large builders like Prestige, Embassy and builders in the north like Unitech and Ansals to name a few. The company has four manufacturing facilities in Bangalore and one in Haridwar with a sales office network in over 12 cities in India.

Moloney Electric is a manufacturer of liquid-immersed distribution transformers in Canada. Moloney Electric exports approximately 30 per cent of its products to the US, Caribbean and other international markets. It has three manufacturing facilities, located in Toronto, Spruce Grove and Sackville, in Canada. With the acquisition, the combined entity of UPT and Moloney is expected to have revenues of over Rs 400 crore.

Vipul Parekh of Peepul Capital said, "The investment is in line with Peepul's belief in India's power sector reforms and UPT's commitment to deliver power equipment products. With Peepul's investment, the company will be poised to take full advantage of the significantly large power equipment market."

Dhruva Talwalkar, MD, UPT, said, "We are confident that with the investment, UPT will continue to take advantage of the exploding market in India as well as global market."