CA Dhiraj Ostwal
Engineering & Mechanical Company — Acquisition Opportunity
ACQUISITION MEMORANDUM
ENGINEERING & MECHANICAL COMPANY
ACQUISITION OPPORTUNITY IN ENGINEERING SPACE · 100% SALE
The Company
Est. 1986 · Mechanical & Electrical Engineering
Turnkey projects across Power, Steel, Cement & Petrochemicals · ~500 employees · ISO Certified · 40+ years of track record
Financials (FY25)
Revenue ₹15.14 Cr · PAT -₹1.98 Cr
FY23 Revenue ₹22.17 Cr · FY23 EBITDA ₹2.57 Cr · Net Worth ₹21.15 Cr (FY23) · Order Book ~₹25 Cr
The Opportunity
100% Stake Acquisition
Promoters divesting due to succession issues · Willing to support transition · Strong client base: JSW, Tata, Siemens, SAIL & more
INVESTMENT ADVISORY SERVICES PROVIDED BY:
CA Dhiraj Ostwal
YOUR VISION, OUR EXPERTISE — STRATEGIC INVESTMENT SOLUTIONS
PRIVATE & CONFIDENTIAL
NDA REQUIRED FOR COMPANY IDENTITY
01 · Company Overview
Company Overview
About the Company
- Founded in 1986, promoted by first-generation technocrats with deep domain expertise
- Largely focused on Mechanical & Electrical Engineering Construction Works
- Provides customised, cost-effective turnkey solutions tailored to individual client needs
- Handles the complete project cycle — from dismantling, packaging, transportation to re-installation and commissioning
- Equipped with tools and equipment of international standards for accurate, timely execution
- ISO Certified with a strong emphasis on quality control and site safety
Sectors Served
Power
Steel
Cement
Petrochemicals
Key Differentiator: Unlike the industry norm of outsourcing to sub-contractors, the company keeps all personnel on its own rolls or as contract labour — ensuring total control, guaranteed efficiency, and timely project completion.
Key Snapshot
Year of Incorporation
1986 (40+ years)
Headcount
~500 Employees
Order Book
~₹25 Crore
Shareholding
Family 1: 50% · Family 2: 50%
Quality Certification
ISO Certified
Deal Type
100% Stake Acquisition
02 · Services Rendered
Comprehensive Engineering & Mechanical Services
Turnkey Projects
End-to-End Project Execution
- Turnkey machinery installation & commissioning
- Design, detailed engineering, erection and commissioning
- Setting up entirely new plants / production lines at new or existing locations
- Industrial relocations within India and abroad
- Complete project cycle: dismantling → packaging → transportation → re-installation → trial run
Piping & Structural
Fabrication, Erection & Piping
- Site fabrication, erection, welding, stress relieving, testing and commissioning of industrial piping
- Low and high pressure piping — mild steel, high carbon steel, stainless steel and alloy steels
- Site fabrication and erection of structures
- Piping installation for utility and hydraulic systems
Electrical & Control Systems
Electrical Installation & Commissioning
- Installation of transformers, panels, motors, cable laying, termination and testing
- Installations / modifications for control systems (electrical & mechanical)
- Erection of static and rotating equipment
- Overhauling of electrical and mechanical machinery
Specialised Services
Maintenance, QA & Heavy Lifts
- Contract maintenance shutdown services
- Planning heavy lifts for machine parts, project cargo and other equipment
- Non-destructive testing: radiography, ultrasonic, magnetic particles, hardness testing
- Relocating equipment within existing premises
Total Control Model: Company does not sub-contract. All personnel on company rolls or as contract labour, enabling meticulous planning, streamlined sites, guaranteed efficiency, and maximisation of profits.
03 · Financial Performance
Financial Performance — Past 3 Years (INR Crore)
Revenue — FY 2025
₹15.14 Cr
Financial Year 2025
Revenue — FY 2024
₹12.33 Cr
Financial Year 2024
Revenue — FY 2023
₹22.17 Cr
Financial Year 2023
EBITDA (INR Crore)
| Financial Year | EBITDA (₹ Cr) |
|---|---|
| FY 2025 | — |
| FY 2024 | — |
| FY 2023 | ₹2.57 Cr |
PAT (INR Crore)
| Financial Year | PAT (₹ Cr) |
|---|---|
| FY 2025 | -₹1.98 Cr |
| FY 2024 | ₹0.95 Cr |
| FY 2023 | ₹1.53 Cr |
Historical Performance (Rs Lakhs) — FY17 to FY23
| Metric | FY17 | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 |
|---|---|---|---|---|---|---|---|
| Revenue (₹ Lakhs) | 1,153 | 938 | 1,528 | 1,307 | 957 | 1,560 | 2,100 |
| EBITDA (₹ Lakhs) | 26 | -34 | 128 | -159 | 60 | 179 | 257 |
| PAT (₹ Lakhs) | -26 | -43 | 91 | -199 | 18 | 15 | 220 |
| Net Worth (₹ Lakhs) | 1,889 | 1,846 | 1,937 | 1,738 | 1,756 | 1,895 | 2,115 |
Revenue grew to ₹2,100 Lakhs in FY23 with PAT of ₹220 Lakhs — a strong recovery from pandemic-impacted years. Net Worth has been consistently maintained above ₹1,700 Lakhs throughout the period.
Context on Financials: Peak turnover of ₹3,039 Lakhs achieved in FY2012-13 with EBITDA of ₹771 Lakhs. Post-founder passing, orders were taken selectively. The company has since re-focused, rebuilt its order pipeline, and is on a strong recovery trajectory.
04 · Order Book & Client Relations
Present Status & Blue-Chip Client Base
Current Order Book
Unexecuted Orders
~₹25 Cr
Executable over 12 months
Pipeline (Under Discussion)
~₹10 Cr
Contracts under negotiation
- Orders received from JSW, Jindal Stainless, Welspun Corporation, BALCO
- Unexecuted order book of ~₹25 Crore provides 12-month revenue visibility
- Additional pipeline of ~₹10 Crore with Jindal Steel (Orissa) and other companies
- Strong repeat business from marquee clients — validation of quality & reliability
Key Client Relationships
Abul Khair Group
ACC Limited
Bharat Forge
Hindalco (Aditya Birla)
Hyundai Heavy Industries
Mahindra Ugine
Nippon Kokan (NKK)
REMI Metals Gujarat
SAIL
Siemens
Tata Group
Welspun Corp Ltd
05 · Team & Organisation
Experienced Leadership & Deep Technical Team
Key Team Members
| Designation | Experience |
|---|---|
| Director / Sr. Vice President | 40 Years |
| President / Deputy | 35 Years |
| Asst. General Manager | 25 Years |
| General Manager | 20 Years |
| Project Manager | 25 Years |
| Sr. Engineer | 25 Years |
| Sr. Engineer | 20 Years |
| Asst. Engineer | 16 Years |
| Engineer | 10 Years |
| Engineer QA/QC | 9 Years |
Team Strengths
- ~500 employees across multiple active project sites
- Team built by inducting experienced personnel from well-known industrial houses across disciplines
- Project managers with cumulatively centuries of experience who mentor junior engineers
- Junior engineers trained on-the-job to manage sites independently
- Top management freed to focus on strategy, not day-to-day operations
- Strong second line of management being developed for succession readiness
Organisation Structure: Board of Directors → Sr. Vice President → Asst. General Managers (Projects, Safety, QA/QC) → Project Managers → Engineers (Electrical, Piping, Mechanical) → Stores & Accounts.
06 · SWOT Analysis
SWOT Analysis
Strengths
- Strong, long-standing relationships with reputed domestic and multinational clients
- Judicious project selection — focus on quality over quantity
- Track record of timely completion of projects with no deviation on safety
- Experience and technical depth of the founding promoters (40+ years)
- No sub-contracting — total control over execution quality and timelines
- ISO Certified with dedicated safety officers at every site
Weaknesses
- Exposure to cyclicality in the economic cycle — project-based revenue model
- No empanelments with government organisations (conscious decision due to payment delays)
- Revenue dip post passing of one of the founders — now recovering
- FY25 PAT loss of ₹1.98 Cr reflects ongoing recovery phase
Opportunities
- Smart City and urban infrastructure initiatives creating large project pipelines
- Government's aggressive focus on infrastructure development (PLI, NIP)
- Strong private sector capex plans — steel, cement and petrochemicals all expanding
- "Make in India" drive creating new manufacturing plant setups and relocations
- India's engineering exports reached $111 Bn (2021-22), growing strongly
Threats
- Highly competitive industry with low entry barriers — fragmented market
- Factors beyond management control (force majeure, design changes) can cause losses not covered by project owners
- Rising labour wages contracting margins for contractors
- Raw material price fluctuations in fixed-price contracts can cause significant losses
07 · Industry Overview
Indian Engineering & Contracting Industry
Industry Overview
- Indian engineering sector witnessed strong growth driven by large investments in infrastructure and manufacturing
- Engineering sector is of strategic importance to Indian economy, closely tied to infrastructure and manufacturing
- Demand driven by: infrastructure, power, mining, oil & gas, refinery, steel, automotive, and consumer durables
- India exports engineering goods to around 228 countries
- Engineering exports grew from $65 Bn (FY17) to $111 Bn (FY22) — a 70%+ jump in 5 years
Contracting Industry Structure
- Project Sponsor / Owner: Arranges funding, invites bids, enjoys high bargaining power due to surplus contractors
- Contractor: Executes as per specifications; revenue booked on milestone achievement
- Materials / Labour Suppliers: Moderate bargaining power — raw materials widely available
- Equipment Suppliers: High bargaining power — concentrated industry, largely imported
Key Industry Challenge: Working capital intensive, low entry barriers, projects awarded to lowest bidder. This company's differentiated no-subcontracting model and blue-chip client relationships insulate it from typical commodity competition.
Industry Challenges & How the Company Addresses Them
| Industry Challenge | Company's Approach |
|---|---|
| Low entry barriers, highly fragmented market | 40-year reputation & blue-chip client relationships as moat |
| Working capital stress from milestone-linked payments | Meticulous planning ensures timely milestone achievement |
| Projects awarded to lowest bidder | Selective bidding — quality and relationship-led wins, not price |
| Rising labour wages squeezing margins | Captive workforce with lower attrition; efficiency from internal control |
| Sub-contractor quality and timeline risk | Eliminated — no sub-contracting model |
08 · Track Record
Illustrative Completed Projects
| Client | Location | Job Description | Duration |
|---|---|---|---|
| GEA Energietechnik GmbH, Germany | Uran, Maharashtra | Fabrication & Erection of Structures, large diameter pipes & Specials (up to 4.2 mtrs dia), sand blasting & painting, Equipment incl. insulation & Electricals for 2×120 MW Air Cooled Condenser — 6,000 MT | 14 Months (on schedule) |
| Kanakdhara Steel Ltd. | MIDC Industrial Estate, Paithan, Aurangabad | Fabrication & Erection of Structural building and cladding work for High Alloy and Special Steel Casting Plant | 6 Months (on schedule) |
| Tata Vashisti Detergent Ltd. | LoteParsuram, Chiplun, Maharashtra | Fabrication & Erection of Steel Structures for building including civil & sheeting and cladding work for Fatty Acid Plant & Hydrogenation Plant | 6 Months (on schedule) |
| Remi Metals Gujarat Ltd. | Bharuch, Gujarat | Erection of building structural, electromechanical works, overhauling & installation of integrated Seamless Tube Plant equipment for 2,500 MT Billet Rolling Mill, AsselMill, PilgerMill with water hydraulic (400 bar) & utility piping, electrical installation including transformers, control panels, switchgear, cabling and commissioning | 6 Months (on schedule) |
| Nippon Kokan K.K (NKK) | Uran, Maharashtra | Civil, structural and piping works at Ethane Propane Recovery Project at ONGC Uran | 5 Months (on schedule) |
| Bharat Forge Ltd. | Mundhwa, Maharashtra | Erection of 5,000 T press line equipment for the Mundhwa Plant | 5 Months (on schedule) |
100% On-Time Delivery: Every project listed above was completed within the scheduled timeline — a testament to the company's meticulous planning, captive workforce model, and strong execution culture built over 40 years.
09 · Acquisition Opportunity
Why Acquire — The Present Opportunity
Reason for Divestment
- Promoters seeking to divest their 100% stake due to succession planning issues
- Promoters willing to continue working with the acquirer for a transition period
- They will act as a bridge between all stakeholders — particularly customers and employees — for smooth management handover
What the Acquirer Gets
- A customer base of reputed MNCs and large domestic groups — JSW, Tata, Siemens, SAIL, Bharat Forge and more
- Experienced team with decades of cross-sector, cross-geography project execution
- Excellent quality control and timeline management practices deeply embedded in culture
- Strong brand built in a niche — no sub-contracting, ISO certified, safety-first
- ~₹25 Cr order book executable within 12 months — immediate revenue visibility
- Huge opportunity to participate in India's infrastructure growth story ("Make in India")
Value Creation Levers Post Acquisition
Scale Order Book
Leverage existing client relationships to bid for larger and more complex projects; expand to new geographies
Expand Sector Coverage
Explore government empanelments (if payment terms improve) and new sectors like renewables, data centres, and EV manufacturing
Team & Capability Build
Retain and strengthen the second line of management; add business development capability for proactive client outreach
Margin Improvement
Operational improvements through better WC management, digital project tracking and strategic raw material procurement
Strategic Fit: Ideal for an industrial conglomerate, EPC player, PE fund with infrastructure/engineering thesis, or strategic acquirer seeking a ready platform with 40 years of relationships, a captive workforce, and immediate revenue visibility of ₹25+ Crore.
10 · Confidentiality & Advisory
CA DHIRAJ OSTWAL
Your Vision, Our Expertise — Strategic Investment Solutions
CONFIDENTIALITY NOTICE
This document is a confidential Blind Investment Teaser prepared for preliminary discussions with potential investors. The identity of The EV Charging Infrastructure Company and all additional detailed information will be shared only with qualified investors upon execution of a Non-Disclosure Agreement (NDA). Unauthorised distribution or reproduction of this document is strictly prohibited. The information contained herein is indicative and subject to change.
Email Contact
dhirajostwal@gmail.com
Direct Phone
70200 45454
Website
www.cadhirajostwal.com
M&A Advisory Office
2nd Floor, Shree Krishna, 7, Shirole Lane, off Fergusson College Road, Shivajinagar, Maharashtra 411004
Private & Confidential · This teaser does not disclose the company name · All information is indicative
THANK YOU
We look forward to connecting under NDA
For detailed due diligence, partnership discussion, and company identity disclosure, please reach out to our advisory team.
CA Dhiraj Ostwal
dhirajostwal@gmail.com · 70200 45454
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