Piramal Enterprises Limited, has financed Rs 400 Cr to Hema Engineering Industries Limited (“Hema”). Proceeds from this loan will be used to refinance existing term lenders and fund the company’s capex plans. The deal was made through Corporate Finance Group (“CFG”), erstwhile structured finance group, of Piramal Finance Limited.
Gurgaon based Hema Engineering is a 2 wheeler focused Tier-1 vendor of fabricated components to clients like Hero, TVS and Royal Enfield. It has seven existing manufacturing facilities across India and four new facilities are expected to commence in the current financial year.
Khushru Jijina, Managing Director, Piramal Finance Ltd. said, “Having committed to an in-depth study of the auto components space in the months leading up to our recently announced deals in the sector, we are pleased to now complete our third transaction within a span of just six months. The industry has grown at 15 per cent CAGR over the last 10 years, higher than the OEMs and continues to grow at a healthy pace. We draw comfort from Hema’s long standing relationship with major OEMs including its top three customers i.e. Hero MotoCorp, TVS and Royal Enfield and look forward to a long and mutually beneficial association in the years to come.”
Chandresh Jajoo, Managing Director, Hema Engineering said, “We are pleased to have initiated a relationship with Piramal given their ability to be a true longer term growth partner for our business. The funding comes at an opportune time coinciding with a significant ramp up in our operations as four new plants are due to commence in the current year with an additional plant planned for next year. The funding structure from Piramal Finance offers a comprehensive solution for us to complete the current capex cycle, rationalise debt repayments and ensure an overall balanced cash flow.” Motor bill sent to select committee of rajya sabha
The bill aims at bringing radical reforms in the transport sector, ranging from hefty fines for traffic rules violations to improving the licensing system and checking bogus licenses. The motor vehicles bill, which aims to usher in far-reaching reforms in the transport sector, referred to a 24-member select committee of the rajya sabha.
The committee will have to submit its report to the Rajya Sabha by the first day of the next session "without extension of time", Deputy Chairman P J Kurien said. The bill aims at bringing radical reforms in the transport sector, ranging from hefty fines for traffic rules violations to improving the licensing system and checking bogus licenses.