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Our Bureau

Hyderabad, Nov 9 The Hyderabad-MTAR Technologies, whichprovides machinery to space, defence and nuclear sectors, has received a $65 million investment from the Blackstone Group.

MTAR will offer 26 per cent equity to Blackstone for $65 million (approx. Rs 255 crore), according to Mr P. Ravindra Reddy, Chairman of the company.

The New York-based Blackstone’s investment could well signal a trend in the possible inflow of private equity funds into Indian private sector vendors in the country’s strategic sectors.

The equity investment by Blackstone would be subject to regulatory approval. Under the terms of the transaction, the funding will be a mix of primary and secondary equity.

MTAR is looking to expand its highly skilled workforce as it gears up to meet the challenges of achieving significant growth while innovating constantly in these sectors. The company wants to use the funds to build capability to meet the growing demands from the aerospace, nuclear and strategic sector, Mr Reddy told Business Line.

The 37 year-old MTAR will continue to be led by the original founders — P. Ravindra Reddy, K. Satyanarayana Reddy and P. Jayaprakash Reddy — and the existing management team, a statement said.

MTAR makes precision machined parts for nuclear power reactors, and engine & structural components for aerospace and defense applications. Its clients include Nuclear Power Corporation of India Ltd, the Indian Space Research Organisation and Hindustan Aeronautics Ltd.

The company has been instrumental in indigenously developing the cryogenic engine stage for ISRO’s GSLV (Geosynchronous Satellite Launch Vehicle), key components for the Tejas—Light Combat Aircraft (LCA) and the Fast Breeder Reactors.

Mr Akhil Gupta, Chairman of Blackstone Advisors India Private Limited said: “MTAR is a sector leader with very unique skill-sets, capabilities and in-depth understanding of a very niche and high potential industry. We are very enthusiastic about this investment as we foresee a huge growth opportunity for MTAR both in domestic and global markets.”

Mr Reddy said the partnership with Blackstone will help the company to scale up its operations in terms of management expertise, global best practices & technology, besides access to Blackstone’s global network.

First Securities was the advisor for this transaction.

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