Loan Amount: ₹13.5 million
Type of Loan: Working Capital Loan
Location: Jaipur, Rajasthan
Disbursement: October 2022
Red Fort Capital has provided a working capital loan of ₹13.5 million to Dausa Transformers, a company that manufactures power and distribution transformers and provides repair services in Rajasthan. Dausa Transformers has been in operation since 1995 and is the second BIS-certified company in India. They are a reputable vendor for more than 12 State Electricity Boards in India, with three production units located in Dausa, VKIA, and Choumu.
The loan is secured by residential and commercial properties, with disbursement scheduled for October 2022. Dausa Transformers has contracts with the electricity boards of Jaipur, Ajmer, and Jodhpur for the repair of transformers, and plans to focus on repairing power transformers due to less competition in this market segment. The funding will assist the company in increasing its revenue by servicing more transformers. Additionally, the state government is allocating more funds towards repairing old transformers instead of purchasing new ones, which presents further opportunities for Dausa Transformers to grow.