Blackstone to invest $65 million in Hyderabad-based nuclear, aerospace sector vendor MTAR

The Blackstone Group today announced an investment of $65 million in the Hyderabad-based precision engineering company MTAR Technologies Private Limited, which has been supplying precision-engineered components for nuclear power, aerospace and defense applications within India for the last 37 years.

MTAR manufactures precision machined parts for nuclear power reactors and engine and structural components for aerospace and defense applications. It also exports precision engineered components for aerospace applications.

"MTAR is a sector leader with very unique skill-sets, capabilities and in-depth understanding of a very niche and high potential industry, said Akhil Gupta, chairman, Blackstone Advisors India Private Limited. "We are very enthusiastic about this investment as we foresee a huge growth opportunity for MTAR both in domestic and global markets."

The deal is subject to regulatory approvals and may attract scrutiny from the security establishment due to its involvement with sectors that are regarded as being sensitive to India''s security.

Under the terms of the transaction, the funding will be a mix of primary and secondary equity.

Ravindra Reddy, chairman, MTAR said: "Blackstone in India has an impeccable record in partnering with companies during their growth phase. This partnership is the key to our ambitious growth plans. In addition to helping us scale up our operations in terms of management expertise, global best practices and technology, this deal will also give us access to Blackstone''s global network."