PG Electroplast Limited — Capital/Financing Update 2021

May 25, 2021

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PG Electroplast Board passes enabling resolution to raise Rs 76.6 crore

• Money to be raised for capacity expansion at its Air conditioning plant in Pune.

• Round led by Baring Private Equity India AIF, Ananta Capital (promoted by the Taparia Family) and Patni family through CCD and Equity shares through preferential allotment.

Mumbai, May 25, 2021: PG Electroplast Limited (PGEL), one of India’s leading players in electronic manufacturing, plastic injection moulding and manufacturing, and printed circuit board assemblies, has enabled resolutions to raise Rs 76.6 crore from investors.

Baring Private Equity India AIF, Ananta Capital (promoted by the Taparia Family) and the Patni family office are participating through preferential allotment of Equity Shares of Rs 40.30 crores and Compulsorily Convertible Debentures (CCD) of Rs 36.30 crores in the company.

Through this funding, PGEL is planning to expand its plant situated in Pune which produces air-conditioners and cooler businesses and establish a new plant in Greater Noida which will produce air coolers, mobile phone parts and other plastic components. Total investment planned for the expansions is about Rs 100 crore for this year. PGEL recorded Rs 642 crores operating revenues for the fiscal FY2020, a growth of 25.4% over its revenues of Rs. 512 crores during the previous fiscal.

Vikas Gupta, Managing Director of PGEL said, “Through this growth focused funding, we plan to expand our production capacity in manufacturing of ACs and coolers. We want to triple the production capacity of AC manufacturing and other products too. The capacity expansion is in line with the growth envisaged in the segment and will also allow use to comfortably meet the PLI scheme criteria of the Government of India.”

PGEL has six existing manufacturing units spread across three geographic locations Greater Noida, Roorkee and Ahmednagar, with a presence in strong sectors like plastic moulding, tool manufacturing, PU paint shop, PCB assemblies and final product assembly. The company’s majorly manufactures washing machines, air conditioners and coolers for marquee clients like LG Electronics, Whirlpool, Haier, Llyod, Blue Star, Voltas, Carrier, Midea, Godrej, Lava, Flipkart, Reliance Retail, Jabil, Honeywell, Kohler, Jaquar, Orient and Crompton. In the last 4 years, PGEL has grown at 25% CAGR annually.

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About PG Electroplast

PG Electroplast [NSE:PGEL] is a trusted partner for Electronic Manufacturing Services and Plastic Moulding for leading consumer durable and automotive plastic companies in India. Company has one of the biggest capacities in Plastic Injection molding and has diverse capabilities across the value chain in the Electronic manufacturing services (EMS).

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