Business Investment Opportunity

Shailesh Waghmare – 9650013256

Shailesh.waghmare@apohanconsultants.com
Arun Joshi – 9810481325
Arun.joshi@apohanconsultants.com

An open die forging company (non-automotive) in Pune is looking for new equity investment
of around INR 16 crore (Approx. USD 2.25 Mn) for X% equity in a phased manner. Strategic
& financial investors may contact Apohan Corporate Consultants Private Limited on the
contact details provided here.

Apohan Corporate Consultants Private Limited shall act as sell side advisors through an
M&A advisory contract dated 14-01-2020 and are looking for equity investors through
this communication. Entities expecting success fees from sellers or seller’s advisors are
requested to kindly excuse.

Area Description
Communication Metal companies, strategic investors, financial investors,
intended for: investment banks, M&A advisors to investors or financial
intermediaries / individuals (& investors interested in equity like
instruments) directly knowing the interested buyers.
Strategic buyers This is an appropriate opportunity for strategic investors in
forging, steel mills, specialty metals, stainless steel shaft
manufacturers and exporters, component manufacturers for: oil
& gas machinery /railway axles/ railway gear boxes/ railway
motor shafts/ metro axles/ defence machinery/ sugar plant
machinery/ cement plant machinery; bright bar manufacturers,
 hydraulic cylinder / jack manufacturers, mining & crushing
industries, power generators, pump and fan industries.
Financial It is an opportunity for Indian & international financial investors
investors interested in benefitting from turnaround of a high potential
company with 5-6 years investment horizon.
Unique  Very low per tonne capital cost
Attraction
Points  High cost advanced metallurgical products
 High technical entry barriers.
 One of the only 20 open die press forging players in India.
 One of the most compact & most cost-effective plants.
 Promoted by technocratic entrepreneur with 25 years of
forging project setup experience of 16 greenfield projects
from concept to commissioning. Ability to set-up many
such new projects.
 Ability to undertake new metal industry projects.
 Only company in India to manufacture metro axles and
getting successfully tested from a Czech Republic
company
 Capable to handle most critical metals like stainless steel
ss310/316/304/410/413/17-4PH/H11 etc.
 Capable of handling 4500 kgs single piece forging.
 Growth potential: metro axles, turbine components,
export markets, gulf market.
Integrated services from design to utility.
Sector Metal forging industry
Established 2010
Company The company commenced commercial operations in 2012. It is
Profile owned by two shareholders and managed by three promoter
directors. They are top suppliers of forged products &
 equipment in India. It is listed in Trade India’s list of verified
sellers offering supreme quality of forged shafts, forged bars,
forged squares, etc. The promoter of the company has vast
experience of more than 25 years in forging industry. The
company has inhouse design & engineering capability of its
products.
In capability & potential terms, the company is in the league of
excellent players like Bharat forge, Kalyani Forge Ltd, Mahindra
Forging, etc. The company plans to utilize 100% manufacturing
capacity, i.e., 400 Tons per month with some capital & working
capital investment from current level of 150 Tons per month.
Products:
• Forging, Heat Treatment and Machining Services
• Metallurgical and Metrological Lab Testing Services
• Packing and Transportation Services
• All Services under one umbrella
Solutions:
• Supply of Forged, Machined and NABL Tested
components
• Significant supply chain management experience -
devise complete solutions for customers

Financial status:
The company could never get sufficient working capital since
beginning due to the entrepreneur being first-generation. It
could never operate beyond the break up capacity utilization
worsening the situation. Hence, the company is under asset
reconstruction company control.
Products Cross block, hollow shaft, tubular shaft, spool, wheel, plate,
flange shaft, plain shaft
Application Power sector project companies, gear manufacturers, sugar
industries for plants, heavy material handling industries, various transmission
products: parts manufacturers, steel plants’ equipment manufacturers,
 forging companies, steel mills, speciality metal manufacturers,
stainless steel shaft manufacturers and exporters;
Component manufacturers for: oil & gas machinery /railway
axles/ railway gear boxes/ railway motor shafts/ metro axles/
defence machinery/ sugar plant machinery/ cement plant
machinery;
Bright bar manufacturers, hydraulic cylinder manufacturers,
jack manufacturers, mining & crushing industries, power
generators, pump and fan industries.
Operational  Forging, normalizing, rough machining, hardening &
Capabilities tempering, testing.
 Handling capacity: 100 kg – 4500 kg single piece,
1000mm-4500mm length, 100mm- 450mm diameter
shafts, wheels, rectangular blocks and customized
shapes.
 Capability to achieve products having flawless ultrasonic
testing of 1.2 FBH.
 Forging done on hydraulic press instead of hammer
having capacity of 1000 tons.

Existing Capabilities:
1. Maximum height/outer diameter = 450mm
2. Maximum length = 4.5 m
3. Shaft - Dia: 140 to 450 mm, Length: 4.5m, Weight: 4.5
Ton max
4. Gear Blank/Crane - Wheel - Dia: 400 to 1100 mm,
Thickness: 400 mm, Weight: 1.5 Ton
Block - Square: 140 to 450 mm, Length: 4.5 m, Weight: 4.5 Ton
max
Esteemed Metso minerals India Pvt Ltd., GL&V India Pvt. Ltd.,
Clients BONATRANS India Pvt. Ltd., Global-tech India Pvt. Ltd.,
Kirloskar EBARA Ltd., Premium transmissions Ltd., L&T
defence, SMS India Pvt. Ltd., AZAD Engineering Pvt. Ltd.,
Jindal Steel & power Ltd., Placebo Transmission Pvt. Ltd.,
Mahindra CIE Ltd., Bharat forge Ltd., Kalyani Carpenters
Special Steel Pvt. Ltd. and other 130 clients.
Goodwill, L & T Defence – Business partner award.
awards,
recognitions
Plant & Open die forging setup:
Machinery
• 1 Press: 1000 Tons
• 1 Reheating Furnace – 10 MT
• 2 NHT Furnace with polymer quench tank
• 1 Bandsaw Cutting Machine- Dia. 500mm
Major equipment:
 Hydraulics Press 1000 T
 Manipulator 4.0 t
 Forging Furnace 10 T/Batch
 Electrical Installation 450 KVA
 Oil Quenching System
 Swage Dies and Tools
 Tempering Furnace
Other essential utilities & storage
Real Estate 6000 sq. feet usable space.
3rd party leasehold land with MIDC.
Employees Total employees:35
Officer staff:10
Engineers: 6
Workers/Operators:19
Certifications, ISO 9001:2015 certified company.
permits &
Product standards: IS/DIN/SAE/ASTM/BS.
licenses
ERP enabled
Litigation None
Financials Peak turnover: 10 Cr (2018-19),
(Possible peak turnover 40 Cr @ EBIDTA margin: 40%)
 ARC debt 3.17 Cr, Other debt 0.8 Cr
Investment Total: Around Rs. 16 Cr in a single phase
Payment to ARC = 3.5 cr, Other suppliers = 0.5 cr, Capital
investment = 3 cr, working capital = 9 cr. It would be a debt free
company operating at handsome profitability & full capacity.
Investment In 3-6 months
timeframe
Reason for part Release of personal securities, extinguishment of ARC tag,
sale of business capacity expansion with minor investment, working capital for
100% capacity utilization, project development for new
opportunities.
Corporate Consent of all directors & shareholders obtained. Requisite
process corporate consultations, board resolutions are under process.
Investment NCND, buyer due diligence, negotiations, term-sheet, seller due
Process diligence, investment contract, statutory & reporting
compliances & integration.
Buyer’s Incorporation, POA to represent the buyer, net worth statement,
documents liquidity statement, investment timeframe & internal process
Required flow – as applicable
Consulting Non-exclusive till NCND between investor & the client company.
Mandate

Apohan Corporate Consultants Pvt. Ltd.

Address: Office No. 11, First Floor, Shriram Complex, Model Colony Road,
Shivajinagar, Pune, Maharashtra, India -411016
(Landmark – Fergusson College)
Landline: +91 20 25650005
E-mail: arun.joshi@apohanconsultants.com
shailesh.waghmare@apohanconsultants.com
Website: www.apohanconsultants.com
Profile: https://www.linkedin.com/company/apohanconsultants