CanBank Venture backs India’s Vinyas Innovative Technology
Canbank Venture Capital Fund, the PE unit of Canara Bank, has invested INR100 million ($1.8 million) in Mysore-based electronic manufacturing services firm Vinyas Innovative Technologies.
According to The Economic Times, CanBank Venture Capital invested in convertible preference shares that grant it a 5% stake with the option of increasing it to 30% within six months. It is Vinyas' first round of institutional funding.
The capital will be used for the construction of a manufacturing facility at Mysore Industrial Park in Koorgally. The estimated cost of the project is around INR240 million, of which INR 140 million is being funded from internal sources. The facility is expected to be operational by April 1 this year.
Set up in 2001, Vinyas caters to the power electronics, defence, aviation and consumer electronics segment, among others. It counts state-owned defence undertaking Bharat Electronics, Larsen & Toubro and Krohne Marshall among its clients.
Since its founding, the organization has grown to a net worth of $6 million and has a workforce of over 600 people. It aims to reach $12 million in revenues in the current fiscal year.
Recent government estimates state that India's electronic manufacturing services industry has the potential to be worth $400 billion. The manufacturing sector as a whole accounts for 16% of the country's GDP.
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