Baring India buys minority stake in Cethar Vessels

Boilers maker Cethar Vessels today said private equity company Baring India has acquired a minority stake in it for $90 million.

The investment will be used for setting up manufacturing facilities for steam turbine and generator, acquiring land for developing power plants, Cethar Vessels said in a statement today.

Cethar Vessels is currently executing 350 MW of power plants and is in the process of getting orders for super critical boilers in the range of 660 MW to 800 MW, it said.

"Given the sustained demand supply gap for electricity in the country, the power sector have been a key component of Baring India's investment strategy over the last several years.

The partnership with Cethar is a key milestone in this context and brings to fruition discussions that have been on for more than a year," Baring Private Equity Partners India Partner Karthik Ranganathan said.

IDFC Capital have been the advisers for this private equity transaction.