The Hindu Business Line : Swedfund picks up 17.24 pc stake in Indian Infrastructure Equipment

Mr Sunil Kanoria, Chairman and Managing Director, Indian Infrastructure Equipment Ltd, exchanging documents with Mr Arne Georgzen, Senior Investment Officer, Swedfund International AB, after signing an agreement in the Capital. - Ramesh Sharma

New Delhi , Sept. 30

SWEDFUND International AB, the risk capital company owned by the Swedish Government, has returned to India after a gap of 10 years by acquiring a 17.24 per cent equity stake worth euro 4 million in Indian Infrastructure Equipment Ltd (IIEL).

Srei Infrastructure Finance Ltd (SREI)-sponsored IIEL set up the first infrastructure equipment bank in the country under the brand name `Quipo' that provides end-to-end equipment services to the infrastructure sector.

Swedfund is the third international financial institution to pick up equity in IIEL after World Bank member company International Finance Corporation and FMO, a financial institution owned by the Government of The Netherlands.

SREI, an infrastructure equipment and projects financing institution, holds a 25 per cent equity capital of IIEL while IFC, FMO and Swedfund together hold another 57 per cent in the company that rents out equipment to contractors on a pay-per-use basis.

Announcing its return to India, Swedfund's Senior Investment Officer, Mr Arne Georgzen, during the signing of the investment agreement here on Wednesday, said that it will take a much more active role in investing in the country.

"Swedfund has decided to return on a much larger scale in India. The investment in IIEL will not be the last project in which Swedfund will be putting its money. We are already discussing with a couple of other partners to increase our investments in India," Mr Georgzen said.

Swedfund exited from its earlier five investments in India in line with its strategy to stay for five to eight years.

Mr Sunil Kanoria, Chairman and Managing Director, IIEL, revealed that Ingersoll Rand recently acquired a strategic stake of 2.6 per cent in the company.

"The association with Ingersoll Rand brings benefits such as discounts on equipment purchases, good after sales support services and joint market development for rental services," Mr Kanoria said.

IIEL proposes to set up more infrastructure equipment banks in various parts of the country.

In line with this plans, Mr Kanoria said that IIEL recently floated NAC Infrastructure Equipment Ltd (NACIEL) in partnership with the Government of Andhra Pradesh, Larsen & Toubro and Nagarjuna Construction Co Ltd to focus on the south Indian market. The large fleet of surplus equipment with L&T shall become a good captive source for the new venture.

The infrastructure equipment bank not only provides equipment on rental basis but also entertains deposit of idle equipment and provides returns thereon to the owners on their idle assets.

It also provides value-added services such as trained operators to run and service the equipment apart from on-site repairs and maintenance thereby enabling contractors to focus on their core competence of construction and project management.

IIEL acquired equipment worth Rs 100 crore including tippers, excavators, dozers, transit mixers and trenchless equipment.

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