TRANS-CONTINENTAL VENTURE FUND (TCVF) INVESTS IN AHCPL
The capital infusion is to meet the increased working capital requirements due to strong growth in demand
TCVF today announced an investment in AH , an auto parts company specializing in critical high tolerance sheet metal components. TCVF is a fund focusing on high quality emerging companies that invests around USD 1 million per transaction.
AH is one of the few companies in India manufacturing sheet metal pulleys. The Company’s strong engineering and design skills make it the preferred vendor for various auto and non-auto companies. It is an approved tier I vendor to leading Indian auto manufacturers such as Tata Motors, Mahindra and Mahindra, Eicher as well as large multinational players such as John Deere, CLAAS, Navistar, etc. AH will use the funds to ramp up operations at its new plant in Chakan.
Post the transaction, TCVF will be represented on the board by Mr. Jayendra Shah and Mr. Ashesh Shah.
In a statement, Ashesh says, “AH with its strong engineering skills, expert management and favorable location is set to benefit from both the domestic and export markets. The Company’s products are highly engineered, and require rigorous design, approval and testing. This lends defensibility to the AHCPL’s business.”
Existing set of investors in AH, based out of India and UK have also participated in the current round.
Mr. Sandeep Sampat, MD of AH, states, “TCVF has been our constant growth partner and have supported us whenever we needed expert advice. They helped us in negotiating international supply agreements that resulted in substantial value enhancement for AH.”
- KEY DRIVERS OF GROWTH IN AUTO DEMAND
- Pick up in Infrastructure spend by government
- Growing demand for transportation of goods
- Emergence of India as low cost manufacturing destination
- Increased exports
As a result of all the above, auto components Industry in India is growing at rapid speed. According to the Automotive Component Manufacturers Association of India (ACMA), the Indian auto-components industry is expected to register a turnover of US$ 66 billion by FY 15–16.
TCVF is a SEBI Registered Category I Alternative Investment Fund (AIF) that invests in emerging and early stage companies in India. The Fund is sector agnostic, and other investments include companies in technology and manufacturing.
The Fund is managed by Trans-Continental Capital Managers LLP. Investment Committee consists of Mr. Ashesh Shah (who is also the Chief Investment Officer and a seasoned Investment professional) and Mr. Jayendra Shah (who is senior Chartered Accountant and partner at N A Shah Associates)