October 28 2010
Earlier this year, the firm raised its first round of $15 million from BanyanTree Growth Capital.
DEG, a member of KfW Bankengruppe (KfW banking group), one of the Europe's largest development finance institutions, has taken a minority stake in Deepak Fasteners Ltd, a manufacturer of specialty industrial fasteners. The quantum of funding was not disclosed.
DEG invests in profitable companies across the sectors that contribute to sustainable development in the economy. DEF finances investments of private companies in developing and transition countries. Its current India portfolio stands at nearly Euro 380 million spread across 42 companies, Amit Goyal, Investment Manager at DEG’s office in Delhi told VCCircle. Among other disclosed investments of DEG in India are Electrotherm, the manufacturers of Yo Bikes.
This is the second round of institutional money flowing into Deepak Fasteners. Earlier this year, it raised its first round of $15 million from BanyanTree Growth Capital LLC, a Mauritius based private equity fund.
Promoted by the Kalra family of Ludhiana, DFL claims to be one of the leading manufacturers of specialty industrial fasteners used in hostile environments, where extremes of temperature, pressure and mechanical vibrations are encountered.
In 2008, DFL acquired the worldwide rights of the Unbrako brand from SPS Technologies, a subsidiary of PCC group of USA, along with a manufacturing facility in Shannon, Ireland. In India, DFL has three manufacturing facilities across Punjab and Himachal Pradesh.
Unbrako is credited with the invention of now common place engineering fasteners such as the socket head cap screw. Unbrako is the preferred supplier to F1 racing cars. Closer home, it supplied fasteners for the Bandra-Worli Sea Link project, Delhi Metro and Mumbai International Airport.
"Deepak's products support a wide range of high growth key infrastructure industries and we believe the company is in a good position to capitalise on the opportunities offered by the next round of growth in India and elsewhere," said Goyal.