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Kolkata-based H.P. Kanoria family-controlled SREI Group is looking for acquisition opportunities in distressed power and road sectors.
The group currently has a wide portfolio of (loan) assets in both the sectors through its flagship NBFC, SREI Infrastructure Finance Ltd. This apart, it has diversified interests in power generation and distribution, oil and gas exploration services, telecom infrastructure (towers), rural IT infrastructure and others.
“We are ready to acquire projects, if we get a good deal. In sectors like roads and power we will be the buyer,” Hemant Kanoria, Chairman and Managing Director of SREI Infrastructure Finance told Business Line .
Sources in a leading investment banker confirmed that the group was scouting for projects on distress sale.
According him, SREI is interested in assets which have already undergone a credit restructuring or lenders or promoters are ready to exit.
Hemant admits that he is looking forward to acquire stakes in ‘over-stressed’ assets from promoters or investors who entered the infrastructure business ‘without understanding its nuances’.
“The expectations (of prospective sellers) need to be at a market level. We are value buyers. Why would we invest in something, if we do not see value in it?” he said.
The group currently owns a profitable 250 MW electricity distribution business in industrial region of Asansol in West Bengal and is also investing in a Rs 2,475-crore power generation capacity at Haldia through DPSC Ltd.
Oil exploration
The 3X150 MW coal-based thermal power plant is to be commissioned in early 2015. DPSC is also selected as a franchise electricity distributor in Gaya, Bihar.
On oil exploration services, spearheaded by Quippo Oil and Gas Infrastructure Ltd (QOGIL), Hemant says the company has five on-land rigs in service and, has no plans to acquire more rigs.
“We don’t have plans to increase the business substantially or move out of the business at this point of time,” he said, adding that the business was generating steady profits and the group was poised to enhance the profitability.
Sahaj e-village
Meanwhile, SREI’s rural IT Infrastructure outfit Sahaj e-village Ltd is expected to break even this year.
Developed in response to the Central project (2007) to create 1,00,000 common service centres (for facilitating e-governance, e-commerce and e-learning) across rural India; SREI runs 28,000 service centres spread over West Bengal, Bihar, Odisha, Assam, parts of Tamil Nadu and Eastern UP.
“We will be EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) positive this year (2013-14). And, it would generate profits another year later. We began setting up service centres in 2008. It took us three to four years to set up the infrastructure,” he said.
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