Poshs Metal Industries, an auto-grade flat steel processing company, has raised ₹43 crore ($5 million) in a fresh funding round led by Aavishkaar Capital, through its Global Supply Chain Support Fund.
The fresh capital will be used to establish a steel processing facility in Aurangabad, enabling Poshs Metal to expand its capacity and serve Original Equipment Manufacturers (OEMs) more efficiently.
Asheer Kapoor, Promoter & Director, Poshs Metal, said, “This funding marks a crucial step in our growth journey as we expand our footprint in Aurangabad. The enhanced production capacity will allow us to serve our customers more efficiently while reinforcing our commitment to innovation and quality. The support from our investors reflects their confidence in our vision, and we look forward to accelerating our expansion plans.”
Abhishek Mittal, Partner-Credit, Global Supply Chain Support Fund, Aavishkaar Capital, said, “We are excited to invest in Poshs Metal Industries and support their next phase of growth through a state of the art processing facility in Aurangabad to further establish themselves as a leading value-added steel processing business for Western India. The Indian auto sector is expected to see a mix of opportunities and challenges with the advent of electric vehicles, sustainable mobility and technological advancements, while also facing increasing competition, global headwinds and rising costs. The company’s strong focus on Environmental, Social, and Governance (ESG) practices through minimum wastage and efficient logistics and a customer-centric approach to deliver quality products on time at a competitive price would be their key success driver going forward. Through the Global Supply Chain Support Fund, Aavishkaar Capital is proud to partner with POSHS Group, and look forward to empowering more such businesses with non-dilutive and flexible financial solutions that are better aligned with their growth ambitions.”
Stephanie Lindemann-Kohrs, Global Head of Equity and Funds, KfW Development Bank, said, “The primary aim of KfW’s investment into the Global Supply Chain Support Fund on behalf of the German Government is to enhance environmental and social standards in companies that are integrated into European supply chains. With an increasing requirement for reduction in carbon footprint and improved labor conditions in automotive manufacturing, it is imperative to uphold fair labor practices and high environmental standards. The investment procedure of the fund adheres to rigorous environmental and social due diligence, thereby setting elevated standards for its investees.”
Founded in 1998 by Ashok Kapoor, Poshs Metal (Poshs Group) specializes in auto-grade steel processing in Western India. Poshs Group caters to some of the top MNCs in the automotive sector. POSHS Metal Industries is an exclusive and authorized steel processing and distribution partner for Tata Steel in Western India, with a relationship spanning 25 years.
Global Supply Chain Support Fund is a $220 million fund managed by Aavishkaar Capital (Aavishkaar), an Aavishkaar Group company and is backed by Germany’s KfW Development Bank. Global Supply Chain Support Fund is focused on investing in Asia and Africa with the mandate of supporting SMEs operating in global supply chains and committed to producing their products and services in an environmentally sustainable and socially inclusive manner.
