Welspun buys 35 per cent in Leighton's India operations for Rs470 crore
24 December 2010
Welspun Group, through its closely held entity Welspun Infra Projects Pvt Ltd, has agreed to acquire a 35 per cent strategic stake in Leighton Contractors (India) Pvt Ltd, Leighton International's Indian operations, for Rs470 crore.
Welspun Group said the alliance would pursue infrastructure opportunities in the Indian and nearby regional markets, including Sri Lanka.
"We believe that growth of the infrastructure sector is a critical prerequisite for sustainable growth of the economy. As Welspun continues to expand, we foresee great potential in the $500 billion Indian infrastructure sector and other neighboring countries and look forward to this strategic partnership as a catalyst for growth," B K Goenka, chairman of Welspun, said.
Leighton Holdings' chief operating officer David Savage said the agreement was about building a strategic partnership, which would bring a diversified portfolio of infrastructure work to the company.
"Leighton and Welspun are jointly interested in pursuing a range of opportunities across the infrastructure sector, including transport and power sector projects. Having a strategic partner like Welspun who have strong desire of developing infrastructure complements Leighton's extensive project development and delivery experience in India and internationally. This combination of local knowledge and international experience will be a continuing strength for the company," said Savage.
He said his company has identified investment opportunities of at least $110 billion in improving India's road and rail infrastructure alone, and at least $30 billion of this is targeted to be raised by the private sector.