India Automotive Components Manufacturers Private Equity Fund-1- Domestic (IACM-1-D)
Carnation Auto India Pvt. Ltd
Carnation Auto is a category–creator from the ex MD of India's biggest automotive company. The company offers multi – brand auto servicing, and other auto related services under one roof. It aims to fill a huge gap between OEM workshops and existing neighborhood garages by offering transparency and value for money servicing.
Carnation has been rapidly expanding its customer outreach by spreading its network of state-of-the-art auto solution hubs in strategic locations pan India. It is simultaneously expanding coverage by forging alliances with premium automobile brands to offer after sales service, spares and accessories in the independent aftermarket.
IFCI Venture Capital has funded Carnation Auto’s growth through infusion of growth equity.
Sabarmati Gas Ltd.
Sabarmati Gas Limited is a company involved in the development and operation of City Gas Distribution network. The company has already started operations in a few districts in Gujarat, catering to to industrial as well as domestic, transportation and commercial needs.
The company is promoted by BPCL and GSPC, which provides a relatively assured gas supply to the company.
It holds the exclusive gas distribution licenses for a highly lucrative market and is anticipated to grow its distribution network and revenues manifold. This is a play on monopolistic utilities, expected to provide steady annuity kind of earnings.
Century Metal Recycling Pvt. Ltd.
Century Metal is one of the largest metal recycling company in the country. It is the first company in the country having liquid metal transfer model in the immediate vicinity of a big automobile player. The company also deploys the most advanced technology at par with world standards in metal recycling.
The company has significant entry barriers by way of setting up liquid metal transfer facilities in key client’s facilities, ensuring their sales. Coupled with management expertise and being part of a secular trend of increasing recycling needs and rising commodity prices, CMR Revenues have grown at a CAGR of over 40% over the last four years with EBITDA growing at a CAGR of almost 69%.
Satyam Cineplexes Ltd.
Satyam is a pioneer in bringing about the multiplex culture in the country. Favourable demographics coupled with rising discretionary spending, and a highly under-served market for quality cinema experience are key growth drivers for the multiplex business and Satyam is well positioned to leverage them. The company follows a strategy of focusing on locational advantages and offering premium cinematic experience, which has resulted in higher average ticket prices and occupancy compared to competition.
IFCI Venture is helping the company to evolve its business model to capture the opportunity available and grow from being a strong regional player to have a sustainable pan-India presence.
Marck Biosciences Ltd.
Marck Biosciences is one of the largest domestic manufacturers of parenteral fluids, eye care solutions, respiratory care solutions and other sterile formulations. The company has approvals for its products from several worldwide regulatory authorities enabling exports to 77 countries in various advanced and emerging markets.
Marck Biosciences has developed a strong distribution network that it leverages to regularly introduce new products that meet high quality standards, enabling strong growth over several years.
IFCI Venture Capital invested in Marck Biosciences in the form of growth equity to help expand its production facilities and enter new international markets through regulatory approvals and increased marketing efforts.
Electronica Machine Tools Ltd.
Electronica Machine Tools is a pioneer in the domestic market of Electric Discharge Machines. Over the decades, Electronica has established credentials in several international markets with increasing presence in additional geographies. Electronica offers a wide range of EDM products customized to meet requirements of various industry areas. Electronica’s industrial automation business provides automation solutions to the Automotive, Defense, Nuclear and other industries.
IFCI Venture is helping Electronica grow further through capacity expansion and widened outreach in additional international markets.
Deltronix India Ltd.
Deltronix is an auto component manufacturer, with existing relationships with several Indian and foreign automobile manufacturers such as Maruti, Hyundai, Tata, Ford, Fiat, Mahindra etc. The company is now starting its alloy wheel operations to tap the large demand supply gap in the country.
Also, with a distinct cost advantage, the company has strategically acquired a French company to tap into the lucrative EU market. This will help Deltronix expand its production capacities and global market reach.
This is a play on the outsourcing wave leveraging the cost arbitrage between developed and emerging economies using global knowhow.
HIM Teknoforge Ltd.
HTL manufactures gears, shafts, axles, crown wheels, pinions, couplings, sleeves, levers, linkages, for tractors and automobiles. The company is an OE supplier to many large manufacturers in automobiles, construction equipment manufacturers, tractor manufacturers, railways and defence. The promoter Mr. Vijay Aggrawal and Mr. Rajiv Aggrawal have around 30 years in forging industry.
The forging production has grown from a mere 440,000 tonnes in 2002-03 to roughly about 1.8 million tonnes in 2009 - 10. In the 2010-11 the forging industry had achieved a growth rate of over 27 per cent with a total production of 2.3 MT.
In order to get befitted from such growth, HTL proposed to upgrade existing forging and automotive components manufacturing facilities, set up new facilities and strengthen working capital. IFCI Venture Capital Funds Ltd. has part financed its expansion plan.
Lokesh Machines Ltd.
Lokesh Machines is engaged in machine tooling and auto component manufacture business. It’s customers include the major OEMs in the automobile sector.
To help negate the difficulties of a cyclical business, the company has strategically attempted to engage its customer base to make it captive, and to reduce the effect of volatility in its key raw materials using reduced inventories and JIT. As a result, over 60% of the company’s business is generated from repeat customers.
The company is well positioned to take advantage of growth in the automotive sector and is expected to perform even better in the next cycle of declining interest rates.