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Canbank Venture Capital Fund has invested ₹10 crore to acquire a 25 per cent stake in Jaipur-based Shera Energy, producer of copper and aluminium products having diversified industrial use. The investment was made through a preferential allotment.
The company is in the process of setting up the fourth plant in Rajasthan through its subsidiary Shera Metal with capital outlay of ₹28 crore and enhance its product offerings in the export market from the new plant that will be commissioned next month.
Naseem Sheikh, Managing Director, Shera Energy, said the fresh money raised would be used to bring down debt of ₹85 crore and reduce the interest outgo substantially. The company is also planning to tap the capital market with an IPO in 2017.
“We have secured fresh orders from the US, Thailand, Dubai and UAE. Exports are expected to touch 1,000 tonnes a month by end of this year compared to 600-700 tonnes currently,” he added.
100 to 7,000-tonne capacityFrom a humble beginning of winding wire products of just 100 tonnes a year in 2003, Shera Energy has enhanced its capacity to 7,000 tonnes.
With the new plant commissioned, the company will start producing high-quality copper and aluminium tubes.
The company expects its turnover to double to ₹600 crore by FY18. In order to optimise its export capability further, Shera Energy plans to invest ₹50-60 crore to set up another plant near a port city in FY17.
“There is enough opportunity in the global market for quality products. In fact, we have managed to replace supply from China in six places in UAE. However, our next plant would depend on the currency movement as most of the machinery is imported,” he said.
Well managed: Canbank VCS Thiruvadi, Managing Director, Canbank Venture Capital, said the company is well managed by technocrat promoters operating in the field of metal fabrication, and who own modern manufacturing facilities with focus on high-quality precision. On its overall business, he said, “Of the ₹435 crore raised through the Emerging India Growth Fund in 2011, we have already invested ₹200 crore in 11 companies and have issued term sheet for the rest with the disbursement target of August.”
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