Infrastructure Investments up 17 Percent in India

According to data from Mumbai, India-based investment bank Equirus Capital, India’s  infrastructure sector raised a total of $3.49 billion across 33 transactions in Fiscal Year 2017  compared with $2.98 billion raised in 31 transactions in 2016, an increase of over 17 percent.

The data also showed that the majority of private market transactions in the fiscal ending March 31 were led by the power, roads and renewables sectors and, within those, about 88% of the transactions were through mergers and acquisitions; the remaining 12% were through private equity investments.

Power pylons

Livemint reports that funds such as U.S.-based I Squared Capital, Indian asset manager IDFC Alternatives’ infrastructure fund, Canada’s Brookfield Asset Management, Australia’s Macquarie Group, and the Canada Pension Plan Investment Board (CPPIB) and Caisse de Depot et Placement du Quebec (CDPQ) have committed large investments in the sector and are looking to buy assets across roads, thermal power, and renewable energy to build their own portfolio in India.

 

April 8, 2017   No Comments

Blackberry Will Make Android Devices in India

Waterloo Canada-based Blackberry announced its partnership with New Delhi, India-based Optiemus Infracom, an existing distribution partner for BlackBerry devices in the country. Blackberry will license device software and brand assets to Optiemus, which will design, manufacture, sell, promote, and support BlackBerry-branded devices in India, Sri Lanka, Nepal and Bangladesh.

Alex Thurber, senior vice president, general manager, Mobility Solutions at BlackBerry said, “India is a very important market for BlackBerry, so we are delighted our latest licensing partnership will extend the BlackBerry software experience to more customers and support the Indian government’s ‘Make In India’ agenda. This is an important milestone in our strategy to put ‘the smart in the phone’, providing state-of-the-art security and device software on a platform relevant to mobile customers, with more localization.”

Blackberry Handset

BlackBerry will continue to control and develop its security and software solutions and maintain trusted BlackBerry security software, including regular Android security updates to the platform, reports telecomlead.

March 20, 2017   No Comments

Magellan Aerospace to Construct Manufacturing Facility in India

The Mississauga, Ontario-based Magellan Aerospace announced plans to construct a manufacturing and assembly plant in India. The 140,000 sq ft building will be constructed on seven acres in the Aerospace Special Economic Zone near the Bangalore International Airport. The company provides complex assemblies for aircraft and engine manufacturers, and defense and space agencies.

Phillip Underwood, president and chief executive officer said, “Magellan’s expanding footprint  in  India,  and increasing  spectrum  of  capabilities, reflects  the  company’s commitment to provide competitive solutions for major commercial customers.”

Magellan Aerospace Logo

The CDN $28 million manufacturing and assembly plant will be constructed in three phases, and Magellan plans to break ground for it in June reports Canadian Business. The unit  will  support  the  production of larger work  packages  for  major structural  assemblies,  fabrications,  and  machined components  for  the  global market, the company announced.

 

February 22, 2017   1 Comment

Canadian Investments Surge in India

Canadian institutional money is pouring into India. One of our  earlier blogs talks about Toronto-based Brookfield acquiring the telecom towers of India’s Reliance Communications. The Brookfield-Reliance Infratel transaction worth $1.6 billion is the second-biggest private equity transaction ever in the country.

Last October, in one of India’s largest deals in the commercial property space, Brookfield Asset Management acquired Hiranandani Group‘s 4.5 million square feet of offices and retail space in Powai, Mumbai, for approximately $1 billion.

Canadian currency

Canadian asset managers from pension or PE funds have been the biggest investors in the last one year, reports the Economic Times. The Canadian Pension Plan Investment Board or CPPIB, Caisse de depôt et placement du Quebec (CDPQ), Ontario Teachers Fund, PSP Investments, Brookfield and Fairfax, have jointly committed around $7-8 billion across companies and funds so far, according to industry estimates. This investment is among the single-largest country-wide commitment towards India in recent times.

“Our long investment horizon aligns to the financing and capital needs of India’s economy, growing entrepreneur culture and the strength of business in the country,” says Suyi Kim, Managing Director, Head of Asia Pacific at CPPIB.

February 10, 2017   No Comments

Canada’s Brookfield Invests $1.6 Billion in India’s Telecom Towers

Brookfield Infrastructure Partners, a private investment firm headquartered in Canada, will buy the telecom tower business of Reliance Communications Ltd (RCOM) for $1.6 billion in cash. This deal is the second biggest private equity deal ever in India.

Brookfield Logo

RCOM’s telecom towers are part of Reliance Infratel Ltd and these will be de-merged into a separate company which will be wholly owned and independently managed by Brookfield Infrastructure, creating the second-largest independent and operator-neutral towers company in India. Private investors George Soros’ Quantum, private equity firm New Silk Route and other investors who had a share in Reliance Infratel were also paid out.

RCOM will receive Class B non-voting shares in the new tower company, providing 49% future economic upside in the firm, based on certain conditions, reports VCCircle. RCOM said it will use the cash payment to reduce 70% of its existing debt.

 

January 3, 2017   No Comments