True North exits India's RDC Concrete after 16-year hold
True North has agreed to sell India-based RDC Concrete, a company it has owned since 2005, to private equity-backed online construction marketplace Infra.market.
The size of the transaction was not disclosed, but local media reported it as being approximately $100 million. True North is said to have invested an initial $20 million for a majority stake, committing capital from its second fund, which closed at $170 million in early 2005.
The private equity firm described RDC as a classic example of its buy-and-build strategy. The company acquired significant market share during the holding period to become the largest non-cement ready-mix concrete supplier in India.
Established in 1993, RDC has 52 plants nationwide and is expected to generate more than INR10 billion ($135 million) in revenue in the 2022 financial year. Its customer base includes construction companies, real estate developers, contractors, infrastructure companies, and various road, industrial and commercial projects.
Ashish Bhargava, a partner at True North, noted in a statement that RDC has delivered industry-leading operational and financial performance while pursuing global standards in terms of product quality. It has also taken steps towards business digitalization and integration of environment, social, and governance (ESG) protocols.
The acquisition comes less than two months after Infra.market closed a $125 million Series D round, led by Tiger Global Management, at a valuation of $2.5 billion. The company was worth $1 billion on closing its Series C in February.
Infra.market claims to be the leading on-demand marketplace in India’s $140 billion construction materials industry, serving both industrial and retail customers. The Series D funding was earmarked for expansion across product verticals and acquisitions. Other recent purchases include Equiphunt, a rental platform for construction equipment, including heavy machinery.
“When we embarked on a journey to build Infra.market, the vision was to build category-defining companies. Concrete was one of the first product categories we started with where we believed technology and an enhanced customer experience would enable us to build a differentiated offering in the sector,” said Souvik Sengupta, founder of Infra.market.
“[The] acquisition of RDC is a significant benchmark for us as we have successfully reached a category-defining position in the concrete industry and become a market leader.”
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