Funds managed and advised by Motilal Oswal Private Equity Advisors Private Limited (MOPE), have committed to invest Rs. 450 million in ElectroMech Material Handling Systems (India) Private Ltd, the largest manufacturer of work shop duty cranes in India and which offers probably the widest range of product spectrum in the cranes industry.
ElectroMech is engaged in the business of design, engineering, manufacturing and installations of Electric Overhead Travelling (EOT) Cranes, Electric Wire Rope Hoists, Jib Cranes and Gantry Cranes. Over the past 30 years of its existence, company has supplied in excess of 4,000 cranes.
ElectroMech has tie-ups with global leaders in the industry like ABUS & Stahl (EX) from Germany, Sibcranex from Russia, and Shuttlelift from USA; to bring in technology, diversify its product offering and increase customer reach. Since 2010, company has also started providing complete after-market sales and services required for cranes, hoists & related material handling systems of any make through its subsidiary Cranedge.
ElectroMech is led by its young and dynamic MD Tushar Mehendale. Tushar, a second generation entrepreneur, stepped into current role at a young age of 24 in 2000. Over the last ten years he has catapulted ElectroMech into one of the largest players in India in terms of number of cranes produced and sold.
According to Mr. Raamdeo Agrawal, Chairman of MOPE, “Over the past 7-8 years, the gross capital formation in the economy as a percentage of GDP has increased from 25% to 36%. With GDP in nominal terms expected to grow at 13% -14% coupled with investment of US$ 1 trillion infrastructure spending in the 12th 5-year plan, this would result in substantial demand for all products and the services required for the development and maintenance of infrastructure. This provides a very strong opportunity for companies like ElectroMechwith a credible brand - built over the last 30 years of its existence, strong management team and a world class manufacturing facility.”
Talking about their decision to invest in ElectroMech he further adds, “We have analyzed a very strong inherent value in the company in the long run. One of our business evaluation tools measures if the company has consistently performed over time vs. its peers. We have realized that ElectroMech’s management is intelligent with business widening prospects and is focused to sustain a long-term competitive advantage.Thus we are optimistic about the future because of the strength of the company.”
“ElectroMech has been able to generate a strong brand recall in a highly commoditized product like cranes. This has helped the company to not only diversify its customer base but also helped in approaching customers for its services business.”
According to Mr. Tushar Mehendale, Managing Director of ElectroMech, “ElectroMech’s vision is to be the largest industrial crane manufacturer in South Asia in the next 5 years in terms of volumes as well as value. As a result, ElectroMech has aggressive plans to become a Rs 7 billion company over the next 5 – 6 years. The growth would come from expansion of product portfolio and entry into newer geographies like Africa, ME, etc.”
“The investment banking firm Innoven, led by Mr. Pradip Dubhashi & Ms. Madhu Dubhashi; has advised us in evaluating our options to make the right decision. ElectroMech has partnered with MOPE considering the track record of the promoters behind the fund and most importantly their ability to understand the unique features pertaining to India and the Indian markets.”
About ElectroMech
ElectroMech is a leading brand in engineering, manufacturing and servicing Industrial Overhead Cranes, Gantry Cranes, Electric wire rope hoists and customized material handling solutions. ElectroMech’s strong tradition of design and manufacturing capability coupled with its tie-ups with ABUS & Stahl (EX) from Germany, Sibcranex of Russia and Shuttlelift of USA, enables it to provide world class hoisting solutions across several industry verticals. For more information, visit www.emech.in
About Motilal Oswal Private Equity Advisors Pvt. Ltd.
Motilal Oswal Private Equity Advisors Pvt. Ltd. (MOPE) is a wholly owned subsidiary of Motilal Oswal Financial Services Ltd. (MOFSL), a diversified financial services group with businesses in securities, Asset Management, Private Equity and Investment Banking. MOPE has launched the India Business Excellence Fund (IBEF), a US$ 125 million India focused Private Equity Fund being managed by MOPE. IBEF has an investment focus of providing growth capital to mid market companies, typically in the range of US$ 5-15 million, across sectors. The Fund has already made 12 investments across sectors such as food processing, bulk packaging, power transformers and power infra enablers, ITES, financial services, EMS, FMCG, auto components, etc.
