Deals

"Singhi Advisors has been an imperative link for us in the transaction. We commend Singhi's inputs in every stage, be it discussing valuations, monitoring the due diligence exercise, documentations, etc thereby making the entire process a smooth path for us. We are bullish on this sector in India and hope to have Singhi Advisors advise us on all our future investments in this sector.We hereby wish the team at Singhi a marvelous future."
Management Board, Gaji Mercentile

Completion Date
July 2010

Transaction Type
Acquisition

Transaction Value
$43 million

Lead Partner
Mahesh Singhi
Telephone + 91 22 6634 6666

Background
Singhi Advisors acted on behalf of Gaji Mercantile in acquiring Bharat Wire Ropes Limited - India’s second largest steel wire rope manufacturer. The wire ropes manufactured by the Company are used in critical applications in industries like Oil & Gas, Shipping, Mining, Railways, Electrical Transmission etc. Its clientele comprises of all top A-list clients both in the government and private sectors such as the Army, Navy, Airforce, Railways, Port Trusts, Electricity Boards and PSUs like BHEL, NTPC, ONGC, BEML, SAIL, Shipping Corporation etc. Amongst its top private sector clients are Kone Elevators, Bajaj Electricals, Suzlon, etc. It enjoys a monopoly in some of its product range, especially for the Railways.
It manufactures wire ropes and strands of varied sizes and dimensions ranging from 0.5 mm upto 76 mm dia and of single continuous length. The ropes are manufactured in both galvanized as well as ungalvanised Carbon Steel variants and also Stainless Steel wire ropes, Copper wire ropes, etc and of various core such as steel, fibre, jute, etc, depending on the customer requirements.
The company’s products are approved and manufactured in compliance with all the major Indian as well as international safety standards considering the magnitude of its end-user industry and is also ISO 9001/ 2000 certified.
The company recorded a turnover of INR 900 mln during FY10 and has grown with a CAGR of 23% in the past 3 years. With the current order book position of around INR 1000 mln, the company is poised to achieve a turnover of about INR 1500 mln in FY11.
Gaji Mercantile is a company into trading & investments promoted by first generation HNIs wanting to foray into manufacturing in high-growth industries like Bharat Wire.
Singhi have been the sole advisors to this Transaction.

What Difference Did We Make?
Singhi, as exclusive advisor to Gaji, provided absolute project leadership and management for the entire course of the deal. Singhi successfully led from the front and carried out negotiations in the key area of valuations and business agreements and actively and completely hand-held Gaji through the entire transaction including due diligence exercises, legal documentation/ agreements, share transfer etc., and finally the successful closure of the deal thus driving Gaji's proposed foray into the manufacturing sector.