Standard Chartered Private Equity (SCPE) has invested INR 2,500m (US$ 45m) for a minority stake in Inox India Limited (INOXCVA), a leading global manufacturer of cryogenic storage and transportation equipment.
Cryogenic storage equipment is a precision engineering product used for storage and distribution of liquefied gases used in industrial applications. The advent of shale gas as a fuel source has also resulted in strong demand for cryogenic storage equipment for liquefied natural gas (LNG) across the globe, especially in the US. INOXCVA, as a top five global player in cryogenic equipment manufacturing, is well placed to leverage these growth opportunities.
The company plans to use the newly injected funds for its organic expansion plans and potential acquisitions.
Commenting on the investment, Siddharth Jain, sponsor from INOX India Limited, said, “INOXCVA is the supplier of choice for global industrial gas majors and oil services firms. Over the next few years our aim is to have a significant presence in all major global markets including Europe. Our partnership with Standard Chartered will help us in leveraging the bank’s extensive reach and access its global oil and gas relationships.”
Mukul Nag, Managing Director, Standard Chartered Private Equity, said, “The unprecedented shale gas supplies in the US are driving the use of LNG as a cheap and clean fuel in transportation and industrial applications. We are excited to partner INOXCVA as the Company capitalises on the opportunities presented in the global market and develops into a multi-national corporation.”
In addition to Inox, over the last 18 months, SCPE has invested in GMR Airports, Redington, Varun Beverages, Greenko, Privi Organics, Bush Foods, Innoventive Industries, Karaikal Port and Craftsman Automation in India.
Yes Bank acted as the transaction advisor for INOX India Limited. Khaitan and Co. and Wadia Ghandy and Co. were the Legal Advisors for INOXCVA and SCPE respectively.