India: IFC to invest $30m in StanChart PE-backed Craftsman Automation

Visual from Craftsman website

International Finance Corporation (IFC), the private investment arm of the World Bank Group, is considering investing up to $30.7 million in Indian engineering firm Craftsman Automation Pvt. Ltd. (CAPL), it said in a disclosure dated April 13.

IFC first invested $37 million in CAPL in May 2010, while Standard Chartered Private Equity (SCPE) invested Rs 85 crore for a minority stake in CAPL in August 2012.

The fresh investment by IFC, in the form of long-term debt, will be used to part finance capacity augmentation and modernisation of the company’s existing facilities through the purchase of new machinery, the disclosure added.

Coimbatore-based CAPL is a manufacturer of high-quality complex precision engineered machined components, industrial gear boxes, sheet metal parts and assemblies for automotive and industrial customers worldwide.

The company has manufacturing facilities in Coimbatore, Pune, Sriperumbudur (near Chennai), Bangalore, Faridabad, Jamshedpur and Pithampur. The project expenditure will be incurred across all the manufacturing facilities of the company, IFC said.

S Ravi is the majority shareholder in CAPL with a 52.83 per cent holding. The other major shareholders are IFC and SCPE’s investment arm Marina III Singapore Pte Ltd., who in aggregate hold 29.56 per cent.

CAPL’s customer base includes companies such as General Electric, Daimler, Mitsubishi, Caterpillar, Siemens, Mahindra & Mahindra (M&M), Tata Cummins, and Tata Motors.

It also has a subsidiary in the Netherlands that sells marine products apart from having two joint ventures with Carl Stahl International GmBH of Germany for the manufacturing of market material handling equipment, and with Mitsubishi Corp of Japan for sales and service of laser cutting machines.

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