IL&FS picks up 82% stake in Tiruchy Park

Private equity fund IL&FS Investments Ltd has acquired an 82 per cent stake in Tiruchirappalli-based GK Industrial Park Pvt for around Rs 70 crore.

The park, coming up on 600 acres on the outskirts of the city, is being being funded through debt and equity. “IL&FS Investment Managers has taken 82 per cent equity and invested around Rs 70 crore in the project,” GK Industrial Park director KG Muralidharan. The debt portion of Rs 77 crore will be funded by Punjab National Bank.

Muralidharan said the company had invested around Rs 75 crore to acquire land and plans to invest Rs 150 crore to create infrastructure in the park.

The private equity fund is likely to exit from the venture in seven years from the date of investment, “after which we are thinking of taking the company to public,” said Muralidharan.

The park will be developed in two phases. The first phase to come up on 265 acres will be complete by December 2010. “Once the entire project is completed by 2012-13, the park will manufacture products worth around Rs 800 crore every year,” he said.

The company is also planning to set up a 40 Mega watt power plant upon completion of the park. The requirement of the industrial park is around 30 Mw, said Muralidharan.

As part of the marketing initiative, the company is in talks with various industry clusters in Europe and the US who want to set up units in India, said Muralidharan. To encourage entrepreneurs, it has introduced a concept whereby it would provide guaranteed work for three years for micro units, which are setting up shops here. The park will also have hotels, housing projects, education institutions and hospitals.