Motilal Oswal to invest Rs. 450 million in ElectroMech

The Funds managed and advised by Motilal Oswal Private Equity Advisors Private Limited (MOPE), have committed to invest Rs. 450 million in ElectroMech Material Handling Systems (India) Private Ltd.
 
According to Raamdeo Agrawal, Chairman of MOPE, “Over the past 7-8 years, the gross capital formation in the economy as a percentage of GDP has increased from 25 per cent to 36 per cent.  With GDP in nominal terms expected to grow at 13-14 per cent coupled with investment of US$ 1 trillion infrastructure spending in the 12th 5-year plan, this would result in substantial demand for all products and the services required for the development and maintenance of infrastructure. This provides a very strong opportunity for companies like ElectroMech with a credible brand – built over the last 30 years of its existence, strong management team.”
 
Talking about their decision to invest in ElectroMech he further adds, “We have analysed a very strong inherent value in the company in the long run. One of our business evaluation tools measures if the company has consistently performed over time vs. its peers. We have realized that ElectroMech’s management is intelligent with business widening prospects and is focused to sustain a long-term competitive advantage. Thus we are optimistic about the future because of the strength of the company.”

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