Lizer Cylinders Gets $10 Million From South Africa’s Rand Merchant Bank
South Africa based private equity firm Rand Merchant Bank (RMB) Private Equity has invested $10 million in Lizer Cylinders Ltd, a company that manufactures CNG cylinders. Vishal Ramsinghani, Managing Director, Lizer Cylinders, said that the funds raised would be utilised to expand the company’s manufacturing capacity from current level of 200,000 to 400,000 CNG cylinders per annum.
Lizer is probably the second cylinder manufacturer to get private equity. The publicly listed Everest Kanto Cylinder Ltd had last year raised $22.5 million from TVG Capital Partners and CLSA Private Equity Management. The Mumbai-based company makes cylinders for industrial, medical and CNG industry.
The market for CNG is said to be on an upside with the fuel considered as a major substitute to oil. The CNG cylinder industry has witnessed CAGR of over 35 per cent during last five years, a release from the company said, which added that there is a “huge demand supply gap” in the industry. “Over the past few years, annual oil consumption has consistently been rising…Transportation consumes 65 per cent of oil production,” the release said.
Anand Rathi Financial Services Ltd was the sole financial advisors to Lizer Cylinders for this deal. Lizer is promoted by Ashok Ramsinghani.
South Africa based RMB is advised by Rosewood Investment Advisor Pvt. Ltd in India. It targets to invest $350-400 million in private equity and real estate investment opportunities by 2011 in India. It has so far committed to four investments in India and is focused on SME segment.
