Vinci, a €35-billion French construction major, has entered the Indian market by buying out 100 per cent stake in NAPC Ltd, a Chennai-based construction company.
NAPC Ltd is into road construction and has orders on hand worth Rs 1,850 crore. The 60-year-old company is wholly owned by the Manian family.
It is learnt that its turnover last year was around Rs 650 crore.
Confirming the development to Business Line, Mr Varun Manian, Vice-Chairman, NAPC, said that he had resigned from the Board and Vice-Chairmanship.
His father, Mr K.S. Manian, who is today the Chairman, will however continue as NAPC's Managing Director for three years.
Mr Manian did not wish to disclose the consideration of the deal yet.
He, however, said that the proceeds of the sale would be deployed into two other business segments the family operates in, viz., residential estate and renewable energy. After the Vinci deal, the Manians will not be able to use the NAPC name in any other of their businesses.
Paris-based Vinci has experience and expertise in all the fields of construction, and has been involved in irrigation, water supply, road, nuclear power and rail projects.
Asked why the promoters wished to exit the company, Mr Manian observed that competition had become intense and messy at the level of smaller road projects.
With a large company as Vinci as a promoter, NAPC would now be pre-qualified for bidding for large projects, he said.
Mr Manian said that the bulk of the proceeds of the stake-sale would be put in residential real estate. The group has several projects going on near Chennai.