3i India Infrastructure Fund Invests $111.51m in KMC Infratech Ltd.

28 Mar 2011

3i India Infrastructure Fund (“the Fund”), an investment fund established by international investor 3i Group plc, (“3i”) is investing around $111.51 million in KMC Infratech Limited (“KMCIL”), a subsidiary of KMC Constructions Limited (“KMCCL”).

KMC Group has more than 40 years of experience in building large construction and infrastructure projects with focus on road sector and has a track record of executing more than 15,000 lane km of road. KMC Constructions Limited, established in 1993, is focused on providing engineering, procurement and construction services in India and abroad and has a current order book of c.Rs.7,000 crores. KMCCL was promoted by Mr. M Raja Mohan Reddy and is currently managed by his sons Mr. M Goutham Reddy, Mr. M Vikram Reddy and Mr. M Pruthvi Kumar Reddy.

KMCIL, incorporated in 2008, is the flagship company of KMC Constructions Limited for all its existing and prospective road “build, operate and transfer” assets. KMCIL owns a portfolio of 10 such projects aggregating c.5,000 lane km across India making it one of the largest road portfolios in the country. 

 Mr. Anil Ahuja - Managing Director and Head of 3i Asia commented on the transaction, “KMCIL is well positioned to take advantage of the significant opportunity in the road sector in India. This investment allows us to partner with an infrastructure operator with a sound track record of constructing and operating road assets in the country.”

Mr. M Goutham Reddy - Managing Director of KMCCL said, “We see 3i as a strong partner which understands the local infrastructure space and the roads sector extremely well and offers a wide global network of contacts and experience. 3i cooperated closely with us to complete this transaction in a short time frame. Looking ahead, we see opportunities to work together with 3i on further investments.”

Ms. Cressida Hogg - Managing Partner of 3i Infrastructure said, “We are delighted to be partnering with KMCIL in a sector where we already have some experience in India and to add this attractive asset to the portfolio to further strengthen our investments in the Fund.

The US$1.2 billion 3i India Infrastructure Fund is building a balanced portfolio of investments focused on power, road, ports and airports. Since inception, the Fund has invested in Adani Power Ltd, Soma Enterprises Ltd, Krishnapatnam Port Company Ltd and GVK Energy Limited.. 
 
Spark Capital Advisors (Private) Limited acted as exclusive financial advisors to KMC Group and DSK Legal acted as legal advisor to the transaction for KMCIL.

Notes to editors

About KMC Infratech Limited
KMC Infratech Limited (KMCIL) is into the business of design, operation, maintenance, advisory, project management, facilitation and development of road transportation infrastructure projects, taking projects in development of national highways, state highways, and urban roads from conceptualization to commissioning. KMCIL is the flagship company of KMC Constructions Limited for all its existing and prospective road BOT assets. KMCIL owns a large road “build, operate and transfer” portfolio of 10 projects aggregating c.5,000 lane km across India making it one of the largest road portfolios in India

www.kmcgroup.co.in

About 3i
3i is an international investor focused on Private Equity, Infrastructure andDebt Management, investing in Europe, Asia and North America. Our competitive advantage comes from our international network and the strength and breadth of our business relationships.  These underpin the value that we deliver to our portfolio, shareholders and fund investors.

www.3i.com