The firm has diversified into multi-product manufacturing divisions and has presence in 15 countries across the globe.
Mumbai-headquartered Pawar Electro Systems Pvt. Ltd has received funding of Rs 25 crore (approximately $4 million) from SIDBI Ventures, the private investment arm of Small Industries Development Bank of India (SIDBI), according to a statement.
Founded in 1997 by K.R. Pawar, Pawar Electro Systems is a global laboratory, Blood Banking and medical cold chain equipment manufacturer and exporter. The firm has diversified into multi-product manufacturing divisions and has presence in 15 countries across the globe.
The PE firm has invested the capital out of its India Opportunities Fund, which has a corpus of Rs 600 crore. The Fund is registered with Securities and Exchange Board of India (SEBI) as a Venture Capital Fund and has been structured as a unit scheme to make primarily equity or equity-related investments in the growth oriented businesses established in India. The Fund will seek a strategic stake in the funded companies with board representation and other rights as venture capital investor.
According to Pawar, the fund raised will mainly be used for expansion and automation of its manufacturing facilities having production area of over 60,000 sq ft.
The company produces a complete range of indigenously produced blood bank and medical cold chain equipment under its own brand named ‘Jove Automation’, the statement said.
Bonanza Corporate Solutions Pvt. Ltd. was the exclusive financial advisor for the deal.
SIDBI has three funds apart from India Opportunities Fund, which was established in August 2011 with a life of 10 years. The other three funds are Samridhi Fund, SME Growth Fund and National Venture Fund For Software and IT Industry (NFSIT).
India Opportunities Fund was floated to provide growth capital to MSMEs operating in emerging sectors such as light engineering, clean-tech, agro-based industries, logistics, infrastructure, educational services, IT/ITES, etc.