SNC Lavalin in India roads JV
By Helen Wright02 December 2011
Canadian contractor SNC Lavalin has formed a joint venture with Indian conglomerate Ashok Piramal Group (APG) and the Indian Infrastructure Fund (IIF) to target public-private partnership (PPP) road-building projects in India.
The joint venture company, Piramal Roads Infra Private Limited (PRIL), was set up by APG as part of the company's pursuit of opportunities in the infrastructure sector. The joint venture agreement sees PRIL retain 51% of the equity interest in the consortium, while the IIF's interest represents a 39% stake and SNC Lavalin has 10%.
The three partners together made equity commitments of US$ 300 million in PRIL over the next three to five years, contingent on project awards.
IIF managing director Aditya Aggarwal said PRIL hoped to have a portfolio of projects in excess of US$ 1 billion over the next three to four years. He said the business represented a strategic platform with like-minded partners.
"Now together with APG and SNC Lavalin, we believe that we have put in place the foundations for an aggressive and profitable growth in the Indian roads business."
APG vice chairman Rajeev Piramal said India's infrastructure sector offered "enormous opportunities" and added that the company aimed to be among the leading infrastructure players in India by 2015.
Meanwhile, SNC Lavalin CFO Gilles Laramée said the deal represented a "natural extension" of the contractor's long-standing presence in the Indian market.
"It also aligns directly with our strategy to grow our concession business globally. With IDFC and Ashok Piramal Group, we will be working with highly reputable groups that have a strong local presence and successful track records," Mr Laramée added.