The private equity arm of Future Capital Holdings Ltd (FCH), Indivision Investment Advisors Ltd, has invested Rs100 crore in New Delhi-based Interarch Building Products Pvt. Ltd, picking up a 13% stake.
Future Capital is part of the Future Group, which is known for its flagship public company Pantaloon Retail (India) Ltd. Indivision declined to comment on the particulars of the deal. Its parent, FCH, recently applied for its own initial public offering (IPO) with the Securities and Exchange Board of India (Sebi), and is in a silent period.
Interarch manufactures metal building systems, and has worked on Tata Motors Ltd’s Singur factory, e-choupals and a Pune cigarette plant for diversified conglomerate ITC Ltd, and petrol pumps for Reliance Industries Ltd.
Arvind Nanda, chief executive officer of Interarch, said the investment will be used to build manufacturing facilities—an additional large plant in Rudrapur, Uttaranchal, and a small facility in Chennai.
The company currently has sites in Rudrapur and Greater Noida.
The new units would double the company’s capacity in the next year.
It expects its current turnover—an estimated Rs450 crore for fiscal 2008, to grow to Rs1,100 crore over three years because of the expansion.
This investment is Interarch’s first step towards listing on the bourses. Nanda said the private equity arm was chosen as the investor because there would be a “better perception for an IPO with Indivision as our partner.”
Indivision also has investments in civil engineering construction contractors B.E. Billimoria & Company Ltd and a relationship with real estate developer Unitech Group.
Indivision invests from a $425 million (Rs1,687 crore) fund, of which nearly half is now invested, said a source close to the firm who did not want to be named.
The company focuses on mid-sized consumer-oriented businesses.
In addition, Indivision owns stakes in well-known companies, such as Nashik-based wine maker Sula Vineyards (Nashik Vintners Pvt. Ltd), Gurgaon-based beauty service company VLCC Healthcare Ltd, Hyderabad-based Global Hospitals, and New Delhi-based Lilliput Kidswear Ltd.