Monday, September 23, 2013: The South Asia-focused SME fund, SACEF, which is managed by the Global Environment Fund (GEF) has made an investment to the tune of Rs 750 million (Rs 75 crore) in Nashik-based industrial control/test and measurement products company, Rishabh Instruments.
Rishabh Instruments was founded in the year 1980s by Narendra Goliya, who is an Indian Institute of Technology and Stanford educated entrepreneur. His company made a revenue of around Rs 2250 million (Rs 225 crore). Lodha Capital Markets functioned as the exclusive financial advisor to this company in this transaction.
Earlier in the year 2011, Risabh Instruments had acquired a Poland-based company, Lunel SA for an amount $25 million.
“Rishabh’s products are at the core of GEF’s investment philosophy that energy measurement and monitoring drive resource efficiency,” Business Standard quoted Raj Pai, Managing Director, GEF Advisors India Pvt Ltd.
As of now, the market for Industrial Control Products in India is estimated at Rs 20 billion (Rs 2000 crore) and global market is estimated at $3.5 billion. The market for Test and Measuring Instrument is estimated at Rs 8 billion (Rs 800 crore). This market is dominated by some famous names like Yokogawa, Fluke, Tektronix, Agilent, Keithley and Gossen Metrawatt.
Moreover, major deals have been struck in this sector including acquisition by Schneider of Luminous Power Technologies, acquisition of industrial automation business of Messung Group by Mitsubishi Electric and the acquisition of the UPS business of Numeric Power Systems by Legrand.
GEF, which was set up in 1990 manages approximately $1 billion in aggregate capital. In the previous two decades it has made investments worth $100 million across nine deals in India via global fund. This firm has walked out from five of its portfolio companies and its investments comprises Integrated Cleanroom Technologies, Kalki Technologies, Greenko Group Plc and Saisudhir.