Indivision picks up 33% in Regen

PRIVATE EQUITY WATCH

Indivision, Future Capital's private equity arm, has bought 33 per cent stake in Chennai-based wind turbine manufacturer, Regen Powertech, for $25 million.

Regen, the exclusive licencee for technology know-how from Germany's Vensys, will set up a manufacturing facility to produce gearless turbines at Tada, Andhra Pradesh in a couple of months.

Initially, the plant will have assembly capacity of 500 MWs and the first shipment is expected by January, sources in the know said.

Future Capital Holdings MD & CEO Sameer Sain confirmed the development. "We can not comment further as the company has filed a DRHP with Sebi and we are in the quiet period," Sain said.

Regen was started by Madhusudan Khemka and R Sundaresh, who were earlier with the Khemka family-promoted wind turbine manufacturer NEPC Micon.

"This is a perfect time to enter the market because of a huge supply and demand gap. The renewable energy industry is valued at Rs 15000 crore. Without any supply chain issues, ease of maintenance and high efficiency gearless turbines are best suited for India," said an industry analyst on the deal, who preferred anonymity.

Indivision Fund was set up in September 2006 and committed nearly 35 per cent of it $ 425 million so far. It invests in high-growth entrepreneur backed companies.

It has invested, among others, in childrens' wear manufacturer and marketer"" Liliput, beauty and wellness chain "" VLCC, construction firm "" BE Bilimoria and wine producer "" Sula Wines.

Private equity investment in India is expected to log $13.5 billion in 2007, and the figure could rise to almost $20 billion by 2010, according to recent estimates.