Hinduja to Launch Rs 2500 cr Infra Fund

More corporate houses in India are joining the private equity (PE) fundraising bandwagon to tap growing potential in the country’s private equity investments. Following the Tatas, Birlas and Ambanis, it is now the turn of the Hindujas to enter the PE fundraising mode.

Contrary to the other corporate groups that have launched general sector-agnostic funds, the Hindujas plan to focus only on investments in infrastructure projects. The diversified group has plans to launch a $500-million (Rs 2500 crore) India-focused infrastructure fund by this year.

In fact, the immense potential for investments in infrastructure in India is compelling more PE firms to set up infra-focused funds in India. According to data from VCCedge, nine infra-focused funds were launched between 2009–2012; they raised about Rs 7800 crore during the period.

According to a study from Bain & Co, PE funds have invested approximately $13 billion, equivalent to one-fourth of the total capital flows to India, into the infrastructure sector over the last five years. Since 2006, annual PE investment in infrastructure has grown fourfold — from about $1 billion to $4 billion in 2010, when it rebounded to the 2007 levels.

Like typical infra funds, the Hindujas also eye investments across the areas including roads, ports and power sectors.