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Valuation of Industrial Assets, Plant & Machinery

Plant, Machinery & Equipment’s are items under Personal Property; that are usually held by an asset intensive business entity for use in either manufacturing/production, supply of goods/services, for lease to third party or for administrative purposes and that are expected to be used for more than a year.

Moreover, these assets are typically capable of being moved or relocated without significant damage or disruption to the land or buildings, and usually will have a significantly shorter useful life than real property. Frequently, the value will differ notably depending on whether an item of plant or equipment is valued in combination with other assets within an operational unit, or as an individual item for exchange. In addition, whether Plant, Machinery & Equipment may be considered as either in situ (in place) or for removal will also affect value.

All these aforementioned facts influence the approach to, the classification, measurement and reporting of, their value; making Valuation of Plant & Machinery and Industrial Assets relatively complex and niche when compared with most types of Real Property valuations.

RBSA holds a leadership position in Valuation of Plant & Machinery and Industrial Assets for different purposes by adopting internationally recognized valuation standards. We have worked across various industry sectors including Automobile & Auto Ancillary, Chemicals & Fertilizers, Cement & Construction, Consumer Goods, Hospitality, Infrastructure, Iron & Steel, Logistics, Metals & Mining, Manufacturing & Engineering, Petroleum, Petrochemicals, Oil & Gas, Pharmaceuticals, Power, Real Estate, Telecom, Information Technology & Electronics, Textile & Leather and Cables etc

Valuation of Plant & Machinery and Industrial Assets may generally be required for following purposes:

  • Mergers & Acquisitions – Pre Merger and Post Merger
  • Financial Reporting – PPA or Impairment Testing (under Indian GAAP, IFRS and US GAAP)
  • Raising of Funds from Public / Private Banks, NBFC’s, PE / HNI Funds, etc (Secured Lending)
  • Distress Assets / Non Performing Asset
  • Strategic Sale or Disinvestment
  • Management information & Strategic Planning
  • Dispute, Arbitration & Litigation support
  • Insurance - Ascertaining right Sum Insured or for Claim submission
  • Initial Public offerings
  • Cost Investigations
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