HCC Infrastructure is a major civil engineering and Construction Company and the news that it plans to let in the
US based Xander Group for Rs. 240 crores, giving it a 14.5 % stake, comes as a minor surprise but may be part of the company’s overall expansion plans. For Xander this is the second deal in
India, the first being a Rs. 400 crore investment in Sadbhav Infrastrucure Project, involved in roads and highway development. Xander is known to invest heavily in hospitality, retail, real estate and infrastructure and this investment, for them, is in line with their vision of investing USD 1.8 billion in equity across
India, in these sectors.
HCC is stretched with investments of Rs. 650 crores and will need additional fund injections to the tune of Rs. 350 crores and this move may be one in the right direction. It already holds
six National Highway Authority of
India concessions totaling Rs. 5500 crores. Five are toll roads and one is an annuity project.
India is on a development spree, building up better infrastructure and roads and will need USD 1.7 trillion in this decade according to Goldman Sachs. Xander and other similar groups are moving actively into India to take advantage of this thrust sector.
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