Blackstone powers Moser Baer’s plans

Private Equity Firm Picks Up Minority Stake In Moser Baer Projects For 1,350 Cr

 PRIVATE equity investor Blackstone has picked up a minority stake in Delhi-based Moser Baer Projects for 1,350 crore that will help the privately held firm set up several power projects in India. Moser Baer Projects is owned by the promoters of CD-DVD maker Moser Baer India, who have been trying to diversify their group's business beyond optical storage products. The fund raised from Blackstone will be used for part financing its power projects that are under implementation and requires as much as 30,000 crore.
    Deepak Puri, founder of Moser Baer Projects, said: "India's energy sector will require massive investments to sustain its high growth trajectory going forward."
    Although a late entrant into the power sector, the company has big plans that includes commissioning power generation capacity of 5,000 megawatt (mw) by 2016. This will largely be under coal fired thermal projects that will comprise 80% of the projects besides 500 MW each of solar and hydro power capacity. The projects will be funded through a mix of debt, internal accruals and private equity placement.
    Indian power generation companies have been attracting significant investor interest in the past few months as companies are looking to tap the market that has shortage of electricity supply. The high economic growth in the country requires abundant power supply to run factories and investors are betting on this demand to grow significantly in the next few years. A consortium led by Morgan Stanley Infrastructure Partners had bought 44% in Asian Genco for $425 million in March. In the following month Singapore's Temasek had invested $200 million in GMR Energy. For Blackstone this is the second power sector investment in the country in as many months. In July, Blackstone India infused $60 million in Monnet Power. "Infrastructure development continues to remain one of our key investment themes in India If we find good deals, we would not hesitate to invest up to $1 billion," Blackstone India managing director Akhil Gupta said.
    Other sectors that are on the radar of the PE firm include media and FMCG. Blackstone has said it plans to invest about $3 billion in India in the next five years.
    It has invested $1.25 billion in 12 Indian companies so far, including garment maker Gokaldas Exports, Allcargo Global, Nagarjuna Construction, MTAR Technologies, Nuziveedu Seeds, CMS Computers, Emcure Pharma and Intelenet. For the promoters of Moser Baer India this is their second stint with power sector.
    Their flagship public listed group company has a separate solar power subsidiary Moser Baer Photovoltaic that has raised funds from another clutch of private equity investors.
BRIGHT DEAL
Moser Baer Projects plans to set up power generation capacity of 5,000 mw by 2016
This will largely be under coalfired thermal projects that will comprise 80% of the projects besides 500 mw each of solar and hydro power capacity
Promoters of Moser Baer India have been trying to diversify their group's business beyond optical storage products