Lizer Cylinders Limited today announced participation by South Africa based Rand Merchant Bank’s (RMB) private equity arm, FirstRand (Ireland) PLC, a leading foreign private equity investor. RMB is advised by Rosewood Investment Advisor Pvt. Ltd in India.
Anand Rathi Financial Services Limited was the Sole Financial Advisors to Lizer Cylinders for this deal.
Lizer is promoted by Mr. Ashok Ramsinghani who has extensive business experience of over 30 years in diverse industries. Mr. Vishal Ramsinghani – Managing Director, a business graduate from USA manages the day to day operations. Commenting on the participation, Mr. Vishal Ramsinghanisaid, “We are happy to have RMB Private Equity as financial partner, which would help us in achieving faster growth. The RMB – Private Equity has invested INR 400 Million (US $ 10 Million) in Lizer Cylinders. The fund raised will be utilized to further expand the Company’s manufacturing capacity from current level of 200,000 to 400,000 CNG Cylinders per annum.”
RMB is a 30 year old bank having head quarter in South Africa. Internationally, RMB operates through its parent company, the FirstRand Bank. The Bank has been making Private Equity Investments over last 18 years in South Africa, Australia, China, India and Brazil. RMB targets to invest US$ 350 to US $ 400 million in private equity and real estate investment opportunities by 2011 in India. It has so far committed to four investments in India and is aggressively focused on SME segment.
The world today is faced with number of major challenges like very steep crude prices, shortage of oil, environment issues, global warming, air pollution etc. Since CNG is a substitute to oil and helps to reduce pollution, CNG cylinder industry has witnessed CAGR growth of over 35% during last five years. Huge demand supply gap exists in this Industry. Over the past few years, annual oil consumption has consistently been rising and our ability to substitute oil in the transportation sector will contribute to the single largest impact in lowering world oil demand. Transportation consumes 65% of oil production.
Source: Money Control