Business | Construction

Maytas on its way to the Gulf

Infrastructure company will receive a significant cash injection from Saudi Bin Ladin Group

  • By Saifur Rahman, Business Editor
  • Published: 00:00 July 9, 2010
  • Gulf News

Dalal says the Saudi deal will help expand Maytas’ business in the region
  • Image Credit: Supplied
  • Dalal says the Saudi deal will help expand Maytas’ business in the region.

Dubai: India's Maytas Infrastructure will soon gain a foothold in the Gulf through a cash injection of Rs3 billion (Dh240 million) by Saudi Bin Ladin Group (SBG) for a 20 per cent stake, company representatives said.

Both parties last month announced the deal that is seen a strategic move by both parties to gain a foothold in each others' territory.

"While the move could give SBG a foothold into the lucrative Indian construction market, it will also give a lifeline to Maytas and open doors to Saudi Arabia's market," said Shahzaad Dalal, Chairman and Chief Executive Officer of Infrastructure Leasing and Financial Services Limited Investment Advisors.

Maytas was controlled by the family of Ramalinga Raju — ex-promoter of Satyam Computer Services who resigned after accepting he had inflated its profits for years.

The Indian government then asked Infrastructure Leasing and Financial Services Limited to take over the responsibility of Maytas and help restructure.

Since then, debt restructuring with lenders has been completed and a new management team led by Vimal Kaushik, a senior construction professional, has been put in place.

"We look at the GCC as a natural extension of our business," Dalal said. "We plan to expand in the Gulf markets as soon as the new transactions are completed in 45 days. The deal will help us to expand Maytas' business in the region."

Power capacity

Infrastructure Leasing and Financial Services Limited Group says has around 13,000 lane kilometres of roads under concession, and is involved in developing over 8,000 mega watts of power capacity.

The company says it pioneered the concept in the water business as early as 1995 and is developing a maritime business with significant ownership in Port and Terminal assets through investments and strategic alliances.

Infrastructure Leasing and Financial Services Limited, owned by financial institutions, reported a $300 million profit before tax, and employs 3,000.

It is described as one of the biggest infrastructure finance companies in South Asia. The company claims that is at present developing infrastructure projects worth more than $30 billion.

The Abu Dhabi Investment Authority, one of the world's largest sovereign wealth funds, owns 12.5 per cent of Infrastructure Leasing and Financial Services Limited.

The company opened its regional office in Dubai last year before structuring the deal with SBG.

The company, which says it has a large order of projects in India, said it talked to government authorities about infrastructure projects on a build, operate and transfer basis.

Dalal said his company sees major project opportunities in the GCC.

"We will be looking forward to major project opportunities for us in the Gulf markets," he said.

Gulf News
Retail Gold Rate
Business Editor's choice