Defense Instrumentation & Electrical Engineering
INVESTMENT OPPORTUNITY
APEX CONTROLTECH ENGINEERS
PROPRIETARY INVESTMENT MEMORANDUM | HYDERABAD, INDIA
M&A ADVISORY SERVICES PROVIDED BY:
CA Dhiraj Ostwal & Co.
YOUR VISION, OUR EXPERTISE— SEAMLESS M&A SOLUTIONS.
PRIVATE & CONFIDENTIAL
NOT AN OFFER FOR SALE
Company Overview & Milestones
Established in 1991 as M/s Galaxy Industrial Controls, the company has operated as a sister concern under the name Apex Controltech Engineers since 2014. A defense-focused B2G engineering firm offering turnkey electrical and instrumentation services for infrastructure and DRDO projects across India.
Core Service Lines
- Design, Supply, Calibration, Erection & Commissioning of Process Control Instrumentation Systems
- Addressable Fire Alarm Systems & Electrical Engineering in Construction
- HT/LT Cable Erection, Electrical Panels & Turnkey Project Installations
- Custom Design, Material Fabrication & Container Manufacturing
- Manpower Supply Services for Industrial Projects
Company Milestones
Certifications: ISO certified with all necessary government registrations including Udyam Registration and GST. Equipment is purchased or rented using the client's GST, enabling an asset-light operational model. Operates entirely at client locations with no need for a centralized production facility.
Asset Valuation & Structure
Asking Price
Full Sale – Asset-Light Business | Physical Assets: ₹7 Lakh | Overdraft to be Settled at Sale
Asset Breakdown
| Asset Category | Value | Details |
|---|---|---|
| Tangible Assets – Machinery | ₹7 Lakh | Winding machines, welding machines & related equipment |
| Intangible Assets | Included | ISO Certification, Udyam Registration, GST Registration |
| Existing Overdraft | ₹95 L – ₹1 Cr | To be settled at time of sale by current owner |
| ASKING PRICE (FULL SALE) | ₹8 Crore | Complete Turnkey Business Transfer |
Key Equipment / Resources
Note: The business follows an asset-light model as most work is carried out directly at project sites, with equipment provided by the clients. The real value lies in established client relationships, certifications, and project execution capability.
Financial Performance Analysis
Revenue & Profitability Trend
| Particulars | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Sales | 9,82,60,000 | 6,55,12,000 | 6,35,12,000 |
| EBITDA | 49,72,199 | 41,16,459 | 40,68,538 |
| PAT (Profit After Tax) | N/A | N/A | N/A |
Key Financial Highlights
Business Model: Revenue is project-based and varies by contract scale and timeline rather than staffing levels. The company operates exclusively in the B2G segment; key clients include DRDO and other public sector agencies across India. The improving EBITDA margin (5.06% → 6.40% → 11% current) reflects strong operational efficiency gains.
Existing Liabilities & Payment Terms
Outstanding Overdraft
Proposed Transaction Structure
| Payment Stage | Percentage | Terms |
|---|---|---|
| Initial Payment | 25% | Required for deal confirmation |
| Balance Payment | 75% | As per mutually agreed timeline |
Legal Framework: Final terms, payment schedule, and warranties to be formalized through legal agreement between parties. All transactions subject to proper documentation and regulatory compliance. The existing overdraft of ₹95 lakh to ₹1 crore will be fully settled at the time of sale.
Service Offerings & Operational Capabilities
Comprehensive Instrumentation & Electrical Services
Full Service Scope
- Conceptual System Design & Engineering: Including supply, installation, testing, commissioning, feasibility studies and general/project records.
- Process Understanding: Plant/machinery philosophy, preparation of PFD and P&ID, control room/analyzer room layout.
- Technical Specification: Field instruments, PLC, DCS, Fire Alarm Systems — inspection & expediting included.
- Installation & Commissioning: Supervision of installation testing, planning & scheduling of I&C jobs, preparation of loops and P&ID with plant logics and ESD.
- Cable & Earthing: Cable schedule, JB schedule, cable termination preparation, plant earthing system with reference to DCS/field instruments/UPS.
- Plant Database & AMC: Preparation of plant point database; annual maintenance contracts for plants and systems.
Complete Equipment Set Supplied
- Pressure Transmitters
- Insulated Heating Wires
- Temperature Transmitters
- Vortex Flow Meters
- Air Headers
- Signal Cables & Control Cables
- Electrical Cables
- Panel Base Frames
- Addressable Fire Alarm Control Panels & Detectors
- Electrical Panels & Instrumentation Cables
Investment Highlights & Strategic Value
Why This Opportunity?
Growth Potential
- Exclusive Government Access: Active contracts with 15–17 government-linked clients across various project sites, including DRDO.
- Asset-Light Scalability: Equipment is purchased/rented using the client's GST — minimal capex required for growth.
- Diverse Project Types: Resources (5–10% margin), Erection (30–40% margin), Instrumentation (40–50% margin) — high-value segment focus.
- Experienced Team: 250+ professionals including project managers, site engineers, I&C teams, mechanical, electrical, and chemical engineers.
- Proven Delivery: Multiple projects completed ahead of target dates for NFC, IOCL, HPCL, Air Liquide, and RINL clients.
- Retirement-Driven Sale: Owner's exit creates rare opportunity to acquire a decades-old defense engineering franchise at an attractive valuation.
HIGH MARGIN POTENTIAL: Instrumentation projects yield 40–50% margins — significant value creation available
Market Opportunity & Competitive Advantages
Industry Positioning
Hyderabad is a major hub for defense and public sector engineering. With established government relationships, deep domain expertise in control & instrumentation, and a proven track record spanning three decades, the company holds a significant competitive moat in the B2G space.
Strategic Advantages
| Advantage | Description |
|---|---|
| Government Relationships | Deep-rooted ties with DRDO, NFC, IOCL, HPCL, BPCL, RINL, Air Liquide and other PSUs |
| Asset-Light Model | Client-provided equipment via client GST minimizes capital risk and maximizes returns |
| International Project Experience | Projects executed in Qatar, Algeria, Australia, South Pars — strong global credibility |
| Proven Execution | Consistently completed projects ahead of target dates across multiple government agencies |
| Quality & Compliance | ISO certification and Udyam registration with full regulatory compliance |
Executed Project Highlights
Operational Readiness & Team Structure
Current Operations Status
✓ Fully Operational – Actively Serving 15–17 Government Clients
- Continuous project operations across multiple government and defense sites
- Full workforce of 250+ professionals currently deployed
- Regular project fulfillment to established PSU and DRDO client base
- All equipment functional with client-site deployment model
- Transportation vehicles available for shifting panels, cables & manpower between sites
- No major capital expenditure required — asset-light model in place
Manpower & Team Structure
| Role | Quantity | Notes | Status |
|---|---|---|---|
| Project Manager | 1 | — | In Place |
| Site Engineers | 3 | — | Active |
| I&C Team | 15 | — | Deployed |
| Mechanical Engineers / Supervisors / Technicians | 4 / 6 / 40 | — | Fully Operational |
| Electrical Engineers / Supervisors / Technicians | 4 / 6 / 30 | — | Fully Operational |
| Instrumentation Engineers / Supervisors / Technicians | 4 / 6 / 35 | — | Fully Operational |
| Chemical Engineers, Supervisors & Operators | 50+ | — | Active |
| TOTAL MANPOWER | 250+ | Ready for Handover | |
Immediate Readiness: The business requires no capital expenditure for immediate operations. All systems are project-ready, allowing new ownership to continue operations from day one with the existing client pipeline and team.
Transaction Details & Investment Structure
Complete Business Sale
Full sale including all business assets, client contracts, certifications, and workforce — seller to settle existing overdraft
What's Included in the Sale
- Tangible Assets – Machinery (₹7 Lakh)
- ISO Certification & Udyam Registration
- GST Registration & Business Licenses
- Existing Government Client Relationships (15–17 PSU Clients)
- Active Project Pipeline
- 250+ Trained Workforce
- Channel Partner Agreements
- Office Infrastructure (500 Sq.Yd Rented Facility)
- Proprietary Project Execution Methodology
- 3-Decade Brand Goodwill in Defense Engineering
Transaction Terms
Initial Payment
25%
Required for deal confirmation
Balance Payment
75%
As per mutually agreed timeline
Available Documentation
| Category | Documents Available |
|---|---|
| Legal Documents | ISO certification, Udyam Registration, GST Registration, Proprietorship deed |
| Financial Records | Multi-year audited financials, Bank statements, Overdraft documentation, Tax returns |
| Technical Details | Project execution records, PO documentation, Completion certificates, Client references |
| Operational Records | Active client contracts, Manpower records, Channel partner agreements, Site deployment logs |
Due Diligence & Next Steps
Investment Process
• Preliminary Q&A session
• Non-binding term sheet discussion
• Site visit scheduling
• Financial records review
• Legal documentation verification
• Client contract assessment
• Payment terms finalization
• Transition support details
• Legal agreement drafting
• Initial payment (25%)
• Asset transfer documentation
• Operational handover
Schedule a Site Visit
Arrange a comprehensive facility tour to assess operations, meet the team, and review active government project contracts
Key Investment Highlights Summary
- Fully Operational: Active business with 15–17 government clients and ongoing project pipeline
- Proven Track Record: 30+ years of engineering excellence with ISO & Udyam certifications
- Exclusive B2G Access: Deep-rooted relationships with DRDO, NFC, IOCL, HPCL, BPCL, RINL and other PSUs
- High Margin Potential: Instrumentation projects yield 40–50% margins; erection 30–40%
- Asset-Light Model: Minimal capex requirements — revenue driven by expertise, not infrastructure
- International Credibility: Projects executed in Qatar, Algeria, and Australia
- Immediate Handover: Seamless transition with skilled 250+ member team in place
NEXT STEPS: STRATEGIC M&A INQUIRY
We look forward to partnering with you to unlock this investment opportunity.
CA DHIRAJ OSTWAL & Co.
Your Vision, Our Expertise— Seamless M&A Solutions.
**Private & Confidential:** This document contains confidential information and is not an offer for sale.
Defense Instrumentation & Electrical Engineering | Private & Confidential