BTS invests $7m in Indian infrastructure company

BTS Investment Advisors is backing the growth plans of Sai Sudhir Infrastructures with the sixth investment from its $80m fund.

The India-focused Swiss private equity firm has invested 320 million Indian rupees ($6.9 million; €4.9 million) in Sai Sudhir Infrastructures, a Hyderabad-based engineering and construction company, for an undisclosed stake.

Sai Sudhir's focus includes construction and modernisation of dams and canals. It is also involved in projects related to rural and urban water supply and management, solid waste management, and execution of electrical switchyards and transmission lines.

The additional capital will be used to expand the company’s engineering capacities and provide it with working capital for completing medium to large infrastructure projects. The company is about to begin work on some water-based projects that it has received from the governments of the states of Andhra Pradesh and Karnataka, and intends to bid for water-based and solid waste management projects in other states as well.

The investment was made from the BTS India Private Equity Fund, an $80 million vehicle that closed in June 2007 and makes investments in the pharmaceutical, life sciences, manufacturing, engineering, IT, telecom and entertainment sectors.

The fund, which makes growth capital investments in small and medium-sized businesses, has concluded six investments. UK's CDC Group committed $20 million to the fund and is the anchor investor. Other investors include the Asian Development Bank, the Swiss Investment Fund for Emerging Markets, the Belgium Investment Company for Developing Countries, the International Cooperation and Development Fund Taiwan, and European and Asian high net worth individuals and family offices.

BTS also manages the $60 million Swiss Technology Venture Capital Fund, also an India-focused vehicle that was launched in 1997. The firm has offices in Zurich and Mumbai.

BTS could not be reached by press time.