Anil Agarwal, Centricus to invest $10 billion in Indian companies

It's not clear whether the partnership will be through Vedanta Group firms

Vedanta Group Founder and Chairman Anil Agarwal, in partnership with London-based investment firm Centricus, plans to invest $10 billion in Indian companies being divested by the government.

In a joint statement on Thursday, they said they intended to invest in entities with substantial turnaround and growth opportunities.

“The launch comes at a promising time for the Indian economy and will support the government’s efforts to achieve its disinvestment targets,” said the statement, adding the strategy will allow companies to benefit from Agarwal’s experience and history of partnering with and creating value for operating businesses.

“India will be the fastest-growing large economy over the next decade. Its dynamism is based on a world-class entrepreneurial private sector, and I believe that this dynamism can be harnessed to unlock incredible transformation in the public sector. We believe that this strategy can, and will, play a crucial role in the country’s on-going industrialisation,” Agarwal was quoted in the statement.

Though Centricus’ partnership is with Agarwal, it is not clear whether it will be through Vedanta Group companies. A Vedanta spokesperson did not comment on the issue.

Agarwal plans to help former government-owned companies accelerate their transformation into private-sector firms with professional management, according to the statement. 

Vedanta had recently placed a preliminary expression of interest for buying the government's stake in Bharat Petroleum Corp (BPCL). This is not the first time that Agarwal is being vocal about picking up stake in state-owned entities.

In the past, the Vedanta Group had picked up a majority stake in government-owned companies such as Hindustan Zinc and Bharat Aluminium Company.

Early this year, Agarwal had pitched for the privatisation of state-owned Hindustan Copper, stating that the only copper producer of the country needed a different dimension for growth as it had good assets.

In October, Agarwal lauded the initiative of NITI Aayog. In a tweet, he said: “Commend @NITIAayog for spearheading discussion on disinvestment of Hindustan Copper. The world is looking at this disinvestment with keen interest.”

Dalinc Ariburnu, co-founder at Centricus, said: “India’s size means that its transformation should result in significant new capital sources for newly-independent Indian companies which will support their development. We are excited to work alongside Anil Agarwal, and in partnership with management teams, to boost the competitiveness of India’s leading companies.”