By IANS,
Chennai : The Tiruchirapalli-based Rs.1,046 crore boiler manufacturer Cethar Vessels Ltd has received $90 million from private equity fund Baring Private Equity Partners India for an unspecified percentage stake, a top official said.
“We chose Baring Private Equity on account of their appetite for investment in infrastructure projects. We are sure that this partnership will take the company to greater heights both in India and other global markets,” Cethar Vessels’ chairman K. Subburaj said.
Cethar Vessels is the second largest boiler maker in India after state-run Bharat Heavy Electricals Ltd (BHEL).
The company’s plant at Tiruchirapalli, around 300 km from here, has an annual capacity of 8,000 MW and is in the process of being expanded to 12,000 MW.
Cethar Vessels is currently executing power plants of unit sizes upto 350 MW and is in the process of getting orders for super critical boilers in the capacity range of 660 to 800 MW.
The fresh investment will be used for setting up facilities to manufacture steam turbines and generators, acquiring land for developing power plants and enhancing the manufacturing capabilities for super critical boilers, Subburaj told IANS.
Cethar Vessels has got the technology to make super critical boilers from US-based Riley Power, which in turn has got the know-how from Siemens. With the tie-up, Cethar Vessels can make super critical boilers of capacities of 600, 660, 800 and 1,000 MW.
The company has opened the current year with an order book of Rs.5,500 crore and hopes to close the year with a turnover of Rs.2,750 crore.
According to Rahul Bhasin, managing partner of Baring Private Equity Partners India, the investment in Cethar Vessels marks the largest investment by the private equity firm in India till date.
Baring Funds provides long-term growth capital with average holding period of over five years and currently has more than $1 billion assets under management.