3i to invest $44.4m for minority equity stake in Navayuga Engineering Company Limited

01 Nov 2006

3i, a leading global private equity company, today announces that it will invest $44.4m in Navayuga Engineering Company Limited ("NECL"). 

NECL is a leading player in the infrastructure construction industry and is specialised in undertaking multi-disciplinary EPC (engineer, procure, construct) contracts in ports, irrigation, hydro-power and bridges. It has an order-book in excess of $1bn and an impressive track-record in quality and delivery. It has embarked on an ambitious expansion plan through investments in BOTs (build-operate-transfer projects) in specific areas such as ports and hydro-power.
 
Announcing the partnership with 3i, Mr. C V Rao, Chairman of NECL said, "We are excited to have 3i as our equity partner. Through its global network and experience, 3i will help us partner with international players in new areas, bring a fresh perspective in evaluating various strategies and help us improve our systems prior to an IPO. They worked very closely with our team to complete the process in a very short time-frame."

Commenting on the transaction, Mr. Anil Ahuja, Managing Director, 3i India said, "India is witnessing significant growth in infrastructure investments particularly through public-private partnership funding mechanisms. We have been impressed with what Mr. Rao and his team have achieved so far.  NECL clearly has the potential to become a Top-5 player in this space and we at 3i are excited and strongly believe in its growth potential.  We are committed to supporting NECL achieve its growth aspiration."

The Indian infrastructure space has seen tremendous growth in the past few years driven by government spending to sustain economic growth, reforms in central policies and the success of user-pay models that make it viable to use new funding mechanisms such as BOTs. With an emphasis on timely delivery and quality, NECL has made steady progress delivering complex, high quality projects in optimum time.  

Notes to editors

About Navayuga Engineering Company Limited
NECL is a multidisciplinary engineering and construction company, focussed on the construction of Pile foundations, Diaphragm walls, Marine structures like Berths, Wharves and Jetties, special foundations, large diameter bored piles, ground improvement geo-techniques, industrial structures, roads, bridges, and Irrigation infrastructure; including multi-disciplinary Turnkey projects on EPC basis and infrastructure facilities on Build, Operate & Transfer (B.O.T) basis.

About 3i 
3i is a world leader in private equity and venture capital.  We focus on Buyouts, Growth Capital, Venture Capital and Infrastructure and invest across Europe, in the United States and in Asia.  Our competitive advantage comes from our international network and the strength and breadth of our relationships in business.  These underpin the value that we deliver to our portfolio and to our shareholders.

3i Growth Capital is the world's largest growth capital fund investing over €1bn per year in businesses across Europe, Asia and the US.  We provide financial and strategic support to established businesses with the potential for outstanding value growth.  We invest between €10m - €150m to help businesses achieve their growth ambitions, restructure shareholdings, release equity or change the balance of equity to debt.  Once we have invested, we are committed to working in partnership with majority shareholders.

Recent investments include: Vijai Electricals, India, €20m; Boxer, Sweden, €84m; Clinica Baviera, Spain, €40m and Vetoquinol, France, €20m.  Recent realisations include CH4 Energy, UK, €225m; Williams Lea, UK, €160m; Gant, Sweden, €241m; Cannon Avent, UK, €450m and AC Hotels, Spain, €45m.