March 2011
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Motilal PE Advisors invests in ElectroMech

Motilal Oswal Private Equity Advisors, a wholly-owned subsidiary of Mumbai-based Motilal Oswal Financial Services, has invested Rs 45 core in a private equity of Pune-based ElectroMech, India’s largest industrial crane manufacturer and customised material handling solution provider.

“We are investing in ElectroMech because its growth is based on its strong fundamentals, and it is also diversifying its customer base,” said Prakash Bagla, vice-president of Motilal Oswal Private Equity. He said the firm was focused to sustain a long-term competitive advantage and it was expected to deliver 30-40 per cent returns over the next three to five years.

“We will use the money for capital expenditure and funding the growth plan of the company,” said Tushar Mehendale, managing director of ElectroMech.

Last month the firm tied up with American firm Shuttlelift, a mobile gantry crane producer, to expand its product line by initially importing the new single beam and mobile gantry cranes from Shuttlelift factory in the US. These gantry cranes, which can lift and move 15 metric tonmes to 1,000 metric tonnes of load, carry a price tag of Rs 90 lakh to Rs 20 crore, he said.

Mehendale said the company was targeting to sell over 650 cranes this financial year, including exports to West Asia, Maldives, Sri Lanka, the Philippines and Africa. Last year it sold 550 cranes.
Source: My Digital FC

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