3i to invest $25.8m for minority equity stake in Vijai Electricals

07 Aug 2006

3i, world leading venture capital and private equity company, today announces that it will invest $25.8m in Vijai Electricals Limited ("Vijai"). 

Vijai is among the largest players in the power transmission and distribution equipment industry. The company is investing over $70m in expanding its product range to include extra high voltage power transformers and switchgear through technology tie-ups with majors in Japan and Russia.  Vijai is also a leading player in undertaking turn-key projects in the transmission and distribution space.

Announcing the partnership with 3i, Mr. D.J. Ramesh, Chairman of Vijai said, "We are happy to have 3i as our equity partner.  Through its global experience and network, 3i will add significant value to enhance our growth opportunities, particularly in international strategy and technology tie-ups.  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 the power sector particularly in transmission and distribution.  We have been impressed with what Ramesh and his team have achieved so far.  Vijai is a clear leader in this space and we at 3i are excited and strongly believe in its growth potential.  We are committed to supporting Vijai achieve its growth aspiration and create a global foot-print."

The Indian power generation, transmission and distribution sector has seen tremendous growth in the past few years driven by government spending to sustain economic growth, reforms in central policies, a focus on rural electrification and an increase in power consumption driven by economic growth.  

Notes to editors

About Vijai Electricals
Established over three decades back in 1973, Vijai Electricals is a leader in the power transmission and distribution equipment industry. With one of the most integrated plants in the Asian sub-continent Vijai has a clear focus on quality. The company is investing over $70m in expanding its product range to include extra high voltage power transformers and switchgear through technology tie-ups with majors in Japan and Russia. Vijai is also a leading player in undertaking turn-key projects in the transmission and distribution space.

About 3i 
3i is a world leader in private equity and venture capital.  We focus on Buyouts, Growth Capital and Venture Capital 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's Growth Capital business focuses on investing minority stakes in high growth companies expanding organically or through acquisition.  The business currently manages 300 investments across Europe and Asia with a value in excess of €1.8bn and invests across a broad range of industry sectors, including healthcare, business services, consumer, media, technology and oil, gas and power.