A STUDY ON VENTURE CAPITAL AT MAKINO AUTO INDUSTRIES AT STATE BANK OF INDIA
DOI:
https://doi.org/10.64751/Keywords:
Venture capital, State Bank of India, Makino Auto Industries, automotive manufacturing, due diligence, deal structuring, risk assessment, SME financing, investment appraisal, exit strategy.Abstract
Venture capital (VC) financing has emerged as a pivotal mechanism for funding high-growth enterprises in capitalintensive sectors such as automotive manufacturing and industrial automation. Makino Auto Industries, a mid-scale automotive components manufacturer, sought structured venture capital support from State Bank of India (SBI) to finance capacity expansion, technology modernisation, and market diversification. This study examines the venture capital appraisal process, funding structure, risk assessment framework, and post-investment monitoring practices applied by SBI in financing Makino Auto Industries. Primary data was gathered through structured interviews with SBI investment officers and Makino Auto Industries management. Secondary data was sourced from SBI Annual Reports (2021–2024), SEBI IFSCA VC regulations, Reserve Bank of India SME credit guidelines, and academic literature on venture capital in Indian manufacturing. The study evaluates SBI's due diligence methodology, deal structuring, valuation approach, and portfolio monitoring mechanisms. Findings reveal that SBI's VC appraisal integrates financial viability assessment, promoter credibility evaluation, sectoral risk analysis, and exit strategy planning within a structured six-stage investment process. Key success factors include strong promoter track record, demonstrated market demand, asset-backed collateral position, and credible revenue projections. Recommendations address governance improvements, milestone-linked disbursement structures, and digital monitoring adoption to enhance VC investment outcome quality.
