China’s Sany Heavy considering stake sale in India business

Sany Heavy Industry Co. excavators.

Chinese construction-machinery maker Sany Heavy Industry Co. is considering selling a stake in its India business, according to people familiar with the matter.

The company has held talks with prospective financial advisers as it evaluates a stake sale in Sany Heavy Industry India Pvt Ltd., the people said, asking not to be identified because the process is private. It has also sounded out potential investors, including industry peers and Indian tycoons, the people said.

Deliberations are in early stages and may not lead to any transaction, the people said. Sany representatives didn’t immediately respond to messages seeking comment.

Some multinational companies are reviewing their operations in India as they seek to raise cash amid heightened interest from investors, and with the nation’s stock market near a record high. Bringing in a local partner also has the potential to make it easier to do business in India.

Among them, Chinese appliance maker Haier Smart Home Co. is looking to sell a stake of as much as 49% in its Indian unit. The plan has drawn interest from Temasek Holdings Pte and GIC Pte, Bloomberg News reported in November.

Sany India’s manufacturing facility in Pune produces construction equipment including excavators, a variety of cranes and mixers, pumps and wind turbine generators, its website shows. It says it has a network of about 42 dealers.

Sany’s shares have risen about 23% in Shanghai in the past 12 months, giving the company a market value of 137 billion yuan ($19 billion).