Largest private equity deals announced this year

3i India Infrastructure Fund established by international private equity firm 3i Group Plc. has invested around Rs 800 crore ($161 million) for a minority stake in Krishnapatnam Port Company Ltd. (KPCL). KPCL is promoted by India’s Navayuga Group and is developing the Krishnapatnam port on the eastern coast of India.

Impact Analysis
It is one of the largest private equity deals announced this year in India. The port sector in India is expected to grow strongly in the coming years, driven by the country’s rapidly growing international trade and current port capacity constraints. However, the sector has not seen many private equity investments so far.

This is the fund’s third investment in India and is seen as a strategic move, deepening its foothold in the rapidly expanding Indian infrastructure sector. The Krishnapatnam port is a high quality, natural, deep water and all-weather port inaugurated in July 2008. The port is well located and, once complete, it is expected to handle about 100 million tonnes of bulk cargo.