GEF to invest Rs 75 cr in Nashik-based Rishabh Instruments

MUMBAI: Global Environment Fund ( GEF), an energy and environment focused private equity firm, will invest around Rs 75 crore in Nashik-based industrial equipment products company Rishabh Instruments, said people involved in the transaction.

Rishabh Instruments, founded in 1980 and with revenue of Rs 225 crore in 2013, intends to use the funds to expand in an organic and inorganic manner.

“With increased automation across the sector, we are bullish for the sector and our aim would be to transform our company from product-based company to solution provider entity,” said Narendra Goliya, CMD of Rishabh Instruments.

“With GEF on board, we are aiming to introducing new products and also” expand abroad.

Mumbai-based boutique investment banking firm Lodha Capital advised Rishabh Instruments on the deal.

“Company’s products such as energy measurement and monitoring drive resource efficiency are at the core of GEF's investment philosophy,” said Raj Pai, managing director, GEF Advisors India. “GEF is excited to partner with Rishabh as it has a strong team and long execution record.”

US-headquartered GEF has approximately $1 billion in aggregate capital under management. The fund had invested in Reva Electric Car Co. in 2006 and exited during the company’s acquisition by Mahindra & Mahindra in 2010.

Currently, the fund has other investments in India, including Integrated Cleanroom Technologies, Kalki Technologies, Greenko Group Plc and Saisudhir Infrastructures.

According to the people connected with the sector, the Industrial Control Products (ICP) market in India is around Rs 2,000 crore, while the test and measuring instrument market in India is close to Rs 800 crore.