Leighton International Limited and Welspun Group today announced that they have joined hand as strategic partners in a joint venture to pursue infrastructure opportunities in the Indian and nearby regional markets, including Sri Lanka. Welspun Group through its closely held entity, Welspun Infra Projects Pvt Ltd., has agreed to acquire 35% strategic stake in Leighton Contractors (India) Pvt. Ltd., Leighton International’s Indian operations for Rs. 470 crore.
Speaking on the strategic relationship with Leighton, Mr B.K. Goenka, Chairman, Welspun said, “We believe that growth of the infrastructure sector is a critical pre-requisite for sustainable growth of the economy. As Welspun continues to expand, we foresee great potential in the $500 billion Indian infrastructure sector and other neighboring countries and look forward to this strategic partnership as a catalyst for growth.”
Leighton Holdings’ Chief Operating Officer, Mr David Savage said that this agreement was about building a strategic partnership which would bring a diversified pipeline of infrastructure work to the company.
“Leighton and Welspun are jointly interested in pursuing a range of opportunities across the infrastructure market, including transport and power sector projects. Having a strategic partner like Welspun who have strong interest in developing infrastructure complements Leighton’s extensive project development and delivery experience in India and internationally. This combination of local knowledge and international experience will be a continuing strength of the company,” said Mr Savage.
“In India, at least US$110 billion has been identified as investment necessary to improve road and rail infrastructure, with US$30 billion targeted to be raised by the private sector. In the government’s current five year-plan, around 35% of the US$500 billion targeted for infrastructure development spending is expected to be in the power sector, driven by the energy demand as India continues to industrialize.
“As a result of this proposed development, India’s construction sector is forecast to grow at 10% per annum over the next three years, and more than US$120 billion is set to be spent in 2011 alone. Our partnership with Welspun will allow us to bid very competitively for this upcoming infrastructure work, which is vital to keeping India on its current strong growth path,” said Mr Savage.
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The transaction is subject to customary statutory, regulatory and other corporate approvals and is scheduled to be completed in the next 90 days.
Issued by Leighton International Limited www.leightonint.com
LEIGHTON INTERNATIONAL LIMITED, is a fully owned subsidiary of Leighton Holdings, one of the world’s major project development and contracting organisations. Since 1975 Leighton International's unique combination of local knowledge and extensive international experience has made us the international contractor of choice in the countries in which we operate. Leighton International focuses on the market segments of civil engineering and infrastructure, building, mining, offshore oil and gas and rail. We operate in Malaysia, India, Singapore, Sri Lanka and Brunei, and are expanding further across Africa and Central Asia. Our Offshore Oil and Gas business operates internationally with projects in India, Australia, Africa, Asia and the Middle East.
www.leightonint.com
Welspun Group
Welspun Group has been operating since 1985. The group has interests in the home textiles, steel, steel pipes, infrastructure, and oil and gas sectors. The steel business is involved in the manufacture of steel ingots/billets, sponge iron and ERW pipes. Welspun Corp (Steel Pipes), Welspun India (Textiles) and Welspun Syntex Ltd (Yarn) are the listed entities within the group. All three businesses are listed on the Bombay Stock Exchange and Welspun Corp and Welspun India are both listed on the National Stock Exchange of India.
www.welspun.com