The Hindu Business Line : Virgo Engineers raises $10 m from Tano India

Talking to presspersons, Mr V.R. Jayaraman, Director and Chief Operating Officer, said the company was planning to utilise these funds for infrastructure and capacity expansion in India as also set up a manufacturing facility in Europe.

Italy unit

He said the company was building a manufacturing plant in Italy, which is a hot bed for valve manufacturing, with an investment of Rs 7 crore. This facility would manufacture high-end valves, which would have a diameter above 24 inches up to 60 inches. The company, which has its facility at Hinjewadi in Pune currently, manufactures valves up to 24 inches.

He noted that it is also expanding its manufacturing capacity and testing facilities at its new plant in Hinjewadi.

Overseas expansion

Mr Jayaraman said it was also looking at acquisitions to the tune of around $10 million to increase its range of speciality valves such as cryogenic valves for LNG. It is also setting up an office in Canada and thinking of establishing presence in different parts of Africa and Asia.

Commenting on the funding, he said Tano, a part of the global investment firm Tano Capital, is an India focussed private equity fund, that provides expansion capital to mid market companies across sectors.

The Mumbai-based Enam Financial Consultants were advisors to the Pune-based company.

Mr Amit Dand of Tano India Advisors Pvt Ltd, said the company has so far invested in four companies, which included areas of power cables, consumer services, and pharmaceuticals and Virgo is the fourth customer.

The fund has invested more than $20 million across these four companies, he said while adding that the corpus of the fund is expected to reach $120 million by the end of the year, which would be invested in India over the next 18 months.

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