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Deal Alert: NYLIM Jacob Ballas invests Rs 200-Cr in Karaikal Port

From the Press Release:
Karaikal Port Private Limited, a subsidiary of Chennai headquartered MARG Limited, one among India’s fastest growing infrastructure companies, today announced that NYLIM Jacob Ballas India (FVCI) III LLC (“NYLIM-JB Fund”) has invested Rs. 200 crores (by way of primary and secondary investments) in MARG Karaikal Port for a minority stake. The funds will be used for the MARG Karaikal Port expansion plans which will enhance the port’s capacity from the already planned expansion of 21 MMTPA to 28 MMTPA. 

MARG Karaikal Port, a premier, hi-tech, all weather port on the South East coast of India is notably the only all weather, deep water, multi-commodity port between Chennai port and Tuticorin port and is strategically located in the middle of this 680 km coastline, which makes it the new gateway to the state of Tamil Nadu. Its combination of strategic location, state-of-the-art equipment and world-class infrastructure makes it the port of choice for industries and businesses located in and around Central Tamil Nadu and beyond.

Commenting on the investment, GRK Reddy, Chairman and Managing Director, MARG Limited said, “MARG Karaikal Port is fast emerging as one of the finest ports on the South East Coast of India. The investment from NYLIM-JB Fund into MARG Karaikal Port comes in at an opportune time. Karaikal Port had already attracted private equity investments by India Infrastructure Fund and Ascent Capital Advisors in the past. With the present investment by NYLIM-JB Fund, MARG Karaikal Port has three institutional investors adding value by their infrastructure exposure & expertise to augment and fuel the ambitious growth plans of Karaikal Port.

MLN Acharyulu, Executive Director-Karaikal Port, further addedMARG Karaikal Port posted an impressive performance and it has consolidated its position as the new Maritime Gateway to Central Tamil Nadu. Capacity to handle large vessels and diverse cargo, single window clearance, E2E logistics, state-of-the-art equipment, competitive tariffs and an ideal location are the hallmarks of MARG Karaikal Port.

Sunil Chawla, Partner, Jacob Ballas Capital India Pvt Ltd (“JBC”), investment advisor to the investment manager of NYLIM-JB Fund, said “Karaikal Port, with its strategic location and excellent connectivity, is well positioned to cater to the agricultural and industrial belts of central Tamil Nadu. The need for incremental, efficient port infrastructure in the country is well known, given increasing volumes and the relatively high turnaround time at some of our ports. Against that backdrop, we see Karaikal Port emerging as a port of choice on the southeastern coast of India, with efficient operations backed by world class infrastructure. NYLIM-JB Fund is delighted to partner with MARG in this exciting venture and looks forward to being a part of the Company's continuing success."

Sunil Chawla will be joining the Board of Directors of KPPL.

About MARG Karaikal Port:
MARG Karaikal Port is a premier, deepwater, all weather port on the South East coast of India. The Port has a sizable hinterland because of its strategic location. Awarded on BOT basis by the Government of Puducherry in 2006, MARG Karaikal Port when fully developed is envisaged to have a total of 9 berths capable of handling up to 47 MMTPA. The Port is to be developed over 3 phases with the final phase getting operational by 2017. MARG Karaikal Port has shown its versatility by handling different types of cargo like coal, fertilizer, cement, raw sugar, project cargo, gypsum, containers, steel pipes, scrap, bagged sugar, construction material etc.

The Port’s cargo handling capacity and capabilities increased significantly during the past 12 months as 2 new deep draft berths were operationalized, taking the total number of berths available at the Port to 5 at present. The Port has deployed dedicated infrastructure to handle containers and liquid cargo and expanded the existing facilities catering to dry bulk cargo.

MARG Karaikal Port has transformed the field of marine architecture by Master Planning, Engineering, Design, on and off shore construction, project management and value engineering. It is committed to continuously invest in high quality infrastructure to meet the future maritime trade needs of the region. Higher discharge rates, no pre-berthing delays, faster turnaround times and savings in the integrated logistics costs vis-à-vis competing ports, has helped in attracting almost all major customers in the Central Tamil Nadu / Puducherry region.

MARG Karaikal Port’s operational processes and practices are on par with the best in the industry and the Port has managed to bag ISO 9001, ISO 14001 and OHSAS 18001 certifications in a record time, demonstrating the maturity and quality of operational processes followed at the Port.

More information on MARG Karaikal Port is available on http://www.karaikalport.com

About MARG:

MARG Limited (BSE: 530543), incorporated in 1994 and headquartered in Chennai, is an infrastructure, real estate development and services company. The Company is listed on BSE and MSE and its shares are traded on the NSE under the category of ‘Permitted Security’. The holistic regional development undertaken by the group is unlocking economic prosperity and creating inclusive & sustainable growth models.

With nearly two decades of reassuring presence and the credit of pioneering the development of economic growth centers, MARG's portfolio spans across the entire infrastructure value chain - urban and industrial infrastructure, urban residential clusters, marine infrastructure & services, malls and EPC division. Listed by Dun & Bradstreet among “India’s Top 500 Companies 2010”, today MARG Group has nationally prestigious projects worth more than Rs. 3,000 crores under execution including the building of marine and cooling structures for the Bhavnagar Electricity Corporation, a seasoned human capital of more than 1,100, global partners in the infra space and offices spread across India, Singapore and China. The MARG CSR brand – MARG Parivarthan complements these business verticals.

More information on MARG is available on http://www.marggroup.com

About NYLIM Jacob Ballas India Fund III, LLC

NYLIM Jacob Ballas India Fund III LLC is a private equity fund with an investment objective of achieving long-term capital appreciation through equity or equity-related investments into companies based in or with significant operations in India. NYLIM-JB Fund and its predecessor Funds have so far invested in 25 companies in a diverse range of sectors including telecom, ports, power, engineering construction, shipbuilding, auto components, IT consulting, general manufacturing, pharmaceuticals, financial services etc. Some of the earlier investments by the Funds include Bharti Airtel, Gujarat Pipavav Port, Punj Lloyd, ABG Shipyard, Reliance Infrastructure, Pipavav Defence & Offshore Engineering Co., Commercial Engineers & Body Builders Co. (CEBBCO), Bhilwara Energy, Mahindra Holidays & Resorts, Financial Software and Systems, SEW Infrastructure, PNC Infratech, Vivimed Labs, Religare Finvest and DBM Geotechnics and Constructions.

About Jacob Ballas Capital India Pvt Ltd
Jacob Ballas Capital India Pvt. Ltd (“JBC”), based in New Delhi, is the investment advisor to the investment manager(s) of three India focused private equity funds, New York Life International India Fund (Mauritius), LLC, New York Life Investment Management India Fund II, LLC and NYLIM Jacob Ballas India Fund III, LLC.  JBC’s ten member investment team has over 150 years of collective operating and investing experience, with over 50 years focused on private equity investments in India.

JBC was founded by Rajan Jetley, Chairman, who is a well known professional and entrepreneur. Mr. Jetley has previously served as CEO of Air India and India Tourism Development Corporation, and as Director of International Airports Authority of India. JBC’s shareholders, apart from Mr. Jetley, include (i) NYLCAP Holdings (Mauritius) which is wholly owned by New York Life Investment Management Holdings LLC, a wholly owned subsidiary of New York Life Insurance Company, (ii) Excelfin Pte Ltd, Singapore, promoted by Mr B S Ong and Mr David Ban, reputed Asian entrepreneurs and (iii) the JBC senior management team, which includes Srinivas Chidambaram, Sunil Chawla, Bharat Bakhshi and Anurag Kumar.

For more information on NYLIM Jacob Ballas India Fund III, LLC and Jacob Ballas, please visit www.jbindia.co.in.

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