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VIKRAN Engineering & Exim: Powering Growth with Strategic Investments

Infrastructure investments


VIKRAN Engineering & Exim: Powering Growth with Strategic Investments

VIKRAN Engineering & Exim Private Limited, a thriving EPC (Engineering, Procurement, and Construction) company based in Thane, Maharashtra, announced the successful closure of its Pre-IPO placement round, securing a substantial investment of approximately USD 10 million. The strategic investors include India Inflection Opportunity Fund (IIOF) and renowned value investor Ashish Kacholia, along with a few others. This infusion of funds is set to propel VIKRAN’s growth trajectory, making waves in the dynamic sectors of electrification, water supply, irrigation, and railway infrastructure.

Investment Details and Stake Acquisition:

India Inflection Opportunity Fund committed INR 45 crores, while Ashish Kacholia and other investors injected INR 36.5 crores into VIKRAN. The collective investment amounts to USD 10 million, securing an approximately 11% stake in the company. The pivotal role of Pantomath Capital Advisors Private Limited as the sole investment banker underscores the strategic nature of this financial move.

VIKRAN’s Pioneering Presence in EPC Projects:

VIKRAN Engineering has emerged as a frontrunner in value-added projects within the realms of electrification, water supply, irrigation, and railway infrastructure. The company’s impressive growth trajectory has positioned it as a significant player in the EPC space, with a robust presence across 22 states in India, including key regions like Uttar Pradesh, Andhra Pradesh, and Madhya Pradesh.

Promoted by Rakesh Markhedkar, an alumnus of IIM Bangalore & BITS Pilani, VIKRAN boasts a seasoned leadership team, including Mr. Avinash Markhedkar, Nakul Markhedkar, Vipul Markhedkar, and Kanchan Markhedkar. Their collective expertise spans various domains, contributing to the company’s success.

Strategic Vision and Professional Management:

With a vision to be a leader in the specialized EPC segment, VIKRAN is committed to constant improvement and innovation. The organization, built with professional management and a robust internal control system, has earned commendable credentials and eligibility in the infrastructure sector. VIKRAN’s unique proposition is further fortified by its well-integrated supply chain and a capable in-house Design & Engineering team comprising 850 professionals.

Mr. Rakesh Markhedkar, MD of VIKRAN, articulated, “Our core business strategy has always been delivering the project ahead of the schedule.” The implementation of SAP systems across over 100 site locations in India underscores their commitment to real-time information access, efficiency, and transparency.

A Strategic Partnership for Future Growth:

India Inflection Opportunity Fund’s entry into VIKRAN signifies a pivotal moment for both entities. Madhu Lunawat, CIO of IIOF, expressed enthusiasm about the investment, stating, “With unparalleled execution capabilities backed by a professional team, a clear vision, and a strong promoter pedigree, we are quite excited about the potential for growth in VIKRAN.” The partnership aligns with India’s ambitious plan to become the 3rd largest economy, with a GDP of approximately USD 8 trillion.

Mr. Rakesh Markhedkar welcomed IIOF on board, stating, “With IIOF partnership, we are confident in our ability to navigate the complexities of the market and seize opportunities that will yield mutually beneficial returns. Together, we can build a future of prosperity and growth.”

Financial Performance:

VIKRAN reported a revenue of Rs. 526 crores in FY23, achieving a commendable CAGR of 25% between fiscal years 2021 to 2023. Notably, the company maintained robust financial indicators, with EBITDA margins of 14.4% and PAT margins of 8.2%, ranking among the best in the industry. The impressive return ratios included a Return on Equity of 28% and Return on Capital Employed of 25%.

As VIKRAN continues to power ahead with strategic investments and a steadfast commitment to excellence, the EPC industry in India stands to witness a transformation. With a vision for leadership, a professional management team, and a strategic infusion of funds, VIKRAN Engineering & Exim is well-positioned for sustained growth and success in the evolving infrastructure landscape.

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