3i India Infra fund invests $111m in Indian road operator

The $1.2bn fund has invested in KMC Infratech, a subsidiary of Indian construction group KMC, which holds ‘one of the largest road portfolios in the country’.

3i India Infrastructure Fund, a $1.2 billion infrastructure fund established by UK-listed firm 3i, has invested just over $111 million in Indian road operator KMC Infratech (KMCIL).

KMCIL, part of Indian construction group KMC, has a portfolio of 10 build-operate-transfer (BOT) road projects amounting to some 5,000 kilometres of roads across India. 3i said the company has “one of the largest road portfolios in the country”. KMC Group has over 40 years of experience in infrastructure and has built more than 15,000 kilometres of road, 3i said.

“KMCIL is well positioned to take advantage of the significant opportunity in the road sector in India,” commented Anil Ahuja, managing director and head of 3i Asia, referring to India’s ambitious programme to build, refurbish and enlarge some 55,000 kilometres of road.

The $1.2 billion unlisted infrastructure fund was closed in 2007 and is close to being fully invested with a portfolio that includes roads, ports, airports and power projects. 3i is understood to be on the verge of raising a second, similar-sized Indian infrastructure fund. 

On a recent trip to India, 3i chief executive Michael Queen said the firm was planning to have between $2 billion and $3 billion invested in Indian infrastructure over the next two years.