Transformer Manufacturing Company Seeking Loan in Ahmedabad, India

Company imports electrical steel, processes it at its factory in Ahmedabad and then supplies to transformers manufacturing companies. We import from vendors in China, North Korea and Japan. Have a regular of 70 transformer manufacturing clients in India, Middle East and Europe. Generate 70% revenue from domestic market and rest 30% through exports.

Since we are currently operating at low profit margins, we are looking to implement forward integration strategy by venturing into manufacturing transformers ourselves under own brand name. Seeking funds to set up the new factory & assembly line. We have identified a land of 1.5 lakh square feet to set up the factory for manufacturing the transformers. However, we are yet to enter into formal agreement to buy the land. This proposed facility is 10 kms away from our current factory.

Company has market presence since 29 years. Business owned assets include land, building and plant & machinery.

Current: Supplies electrical steel as raw material required for transformers manufacturing.

Future: Planning to start manufacturing transformers under own brand name.

Current facility: 1.25 lakh sq ft of facility owned by the company.

New proposed facility: It will be on 1.5 lakh sq ft land and will be bought in the company's name.