The Hindu Business Line : ICICI Venture invests Rs 82 cr in Electrotherm

Ahmedabad March 20 Electrotherm (India) Ltd, the Ahmedabad-based engineering and manufacturing company with major strength in power electronics, has announced that ICICI Venture Funds Management Ltd has invested Rs 82 crore, through a private placement, to part fund its second phase of expansion plans of Rs 400 crore.

While ICICI Venture would subscribe to Rs 82 crore worth of the company's equity, the promoters would bring in Rs 58 crore to meet the equity portion, its Director, Mr Shailesh Bhandari, and ICICI Venture's Director, Mr Jayant Banarjee, told a news conference here.

Expansion Plan

Term loans worth Rs 200 crore and internal accruals of Rs 60 crore would meet the balance funding requirements of the proposed expansion plan. KPMG corporate finance was the sole advisor for the transaction.

The term loans have been sanctioned and disbursed and the company has already invested Rs 300 crore out of the total planned expenditure of Rs 400 crore.

Electrotherm, which successfully launched battery-run two-wheelers under brand-name of Yobikes last year, has seen its turnover of Rs 60 crore in 2004-05 jumping to Rs 345 crore in 2005-06 and it is expected to close 2006-07 at around Rs 650 crore. The company plans to roll out more than 1,50,000 two-wheelers next year at its Kutch-based unit, now under expansion.

Apart from the scooter plant, the facility would also have a waste-heat power plant, which would together make Electrotherm eligible for carbon credits.

For setting up these facilities, the company has embarked on a capital investment plan of Rs 530 crore, in two phases. The first phase of Rs 130 crore had been implemented with term loans and accruals.

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