Piramal Finance sanctions Rs. 400 crore to Hema Engineering
Piramal Finance Limited, subsidiary of Piramal Enterprises Limited, has financed Rs 400 Cr to Hema Engineering Industries Limited. 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, 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 7 existing manufacturing facilities across India and 4 new facilities are expected to commence in the current financial year.
Mr. 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 6 months. The industry has grown at 15% 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 3 customers i.e. Hero MotoCorp, TVS and Royal Enfield and look forward to a long and mutually beneficial association in the years to come.”