$ 2.5- bn Shapoorji Pallonji Group chairman consolidates infrastructure businesses

Shapoor Mistry, chairman of the $ 2.5-billion Shapoorji Pallonji Group and elder brother of Tata Sons chairman Cyrus Mistry, has embarked on a restructuring of the Group's infrastructure businesses.

In the past six months, 50-year-old Shapoor has spearheaded mergers in two Group companies.

"We have merged Afcons Infrastructure International with Afcons Infrastructure and Universal Mine Developers with Shapoorji Pallonji Infrastructure Capital Co," a Group executive said on condition of anonymity. Afcons Infrastructure, a Mauritius- based company, was into engineering and construction sectors while Universal Mine was engaged in mining. " The merger of these two companies with larger entities will give the Group a better focus," the executive said.

Shapoor has been managing the Group ever since Cyrus moved to the Tata Group more than a year ago. The brothers were jointly managing the 149-year-old Group holding firm Shapoorji Pallonji & Company.

Shapoor was also managing the real estate vertical and the two listed entities- Forbes & Company and Gokak Textiles.

Cyrus was instrumental in moving the Group higher on the construction value chain- from being just a contractor to a company undertaking engineering, procurement and construction for complex infrastructure projects. After Cyrus' exit, the Group's patriarch, 84-year-old Pallonji Mistry, handed the baton to Shapoor.

The Group's infrastructure business is housed in three companies: Afcons, Shapoorji Pallonji & Company and Shapoorji Pallonji Infrastructure Capital.

These companies have dozens of subsidiaries in India and overseas.

There could be more consolidation of subsidiaries in coming months, the executive said.

Some analysts view the consolidation in the infrastructure business as a precursor to entering the capital market. In fact, Afcons had filed documents for an initial public offering in 2007 but didn't go through with it. The Shapoorji Pallonji & Company is known for constructing some landmark buildings like the Reserve Bank of India and HSBC headquarters in Mumbai. The value of the Group's in various companies runs close to $ 10 billion, which includes the value of the 18.4- per cent stake in Tata Sons.