PG Electroplast board enables resolutions to raise Rs 77 crore

MUMBAI: PG Electroplast (PGEL), 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, 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 will produce air coolers, mobile phone parts, and other plastic components. The 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 users 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 molding, tool manufacturing, PU paint shop, PCB assemblies, and the final product assembly. The companies majorly manufacture 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.