Private equity firms Blackstone and Primus Capital Partners are in the race to pick up a minority stake in Hinduja Foundries, the Economic Times reported.
Hinduja Foundries is the new name for the almost six decades-old Ennore Foundries Ltd, part of the diversified Hinduja Group.
The Hinduja Group decided to sell close to 10 pct of its current 80 pct equity holding in the foundry unit to raise about 80-100 mln usd, the report added. The funds will be used to part-finance its proposed capacity expansion plan and for overseas acquisitions.
Hinduja Foundries, the local leader in the foundry business, is also on course to emerge as Asia's largest foundry after the planned revamp, the paper said.
The company plans to take its current capacity from 96,000 tonnes per annum to around 230,000 TPA within the next 2-3 years, the paper said. Of this, the company will soon add 50,000 tonnes capacity from the just completed Sriperumbudur unit in southern India.
Source: Forbes