3i invests US$ 80mn in Welspun Gujarat

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3i invests US$ 80mn in Welspun Gujarat

3i invests US$80 million in Welspun Gujarat

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3i, world leading private equity and venture capital company, has invested US$80 million for a 6.6% stake in Welspun Gujarat Stahl Rohren Ltd ("Welspun") through a purchase of secondary shares in the company.  Welspun Gujarat is the flagship company of the Welspun Group, led by Mr. B.K. Goenka, and is listed on the Indian and Luxembourg Stock Exchanges.

The company is one of the world's largest manufacturers of line pipes used by the oil & gas sector and is in the midst of executing an ambitious expansion plan including adding new capacity, backward integration into manufacture of plates and coils and establishing an overseas presence with a facility in the US.  The company counts the world's largest oil & gas companies, including Exxon Mobil, Chevron and Saudi Aramco, as its customers.  Post completion of the Company's expansion plans, it will have a total capacity of 1.75 million tonnes per annum, up from 1 million tonnes per annum currently.

Mr. Chris Rowlands, 3i Managing Partner, Asia, said, "We are excited to invest in Welspun and have been particularly impressed with the management team and its international outlook.  We believe the company's international footprint, strong customer relationships, cutting edge technology, backed by a strong demand environment, is a winning proposition.  We look forward to a close relationship as an actively engaged shareholder, leveraging our expertise in the oil & gas sector to further the company's prospects."

The company has the distinction of having supplied pipes for the world's deepest gas pipeline in the Gulf of Mexico and was ranked 39th by Standard and Poor amongst India's top 100 companies.  Business India, a leading Indian business magazine, has ranked Welspun as India's fastest growing company. 

Sourced From: R&PM:Edelman