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SCPE pumps $45m into Indian cryogenics firm

  • Susannah Birkwood
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Standard Chartered Private Equity (SCPE) has paid INR2.5 billion ($45 million) for a minority stake in Inox India, a major global manufacturer of cryogenic storage and transportation equipment.

A precision engineering product, cryogenic storage equipment is used for the storage and distribution of liquefied gases used in industrial applications. The introduction of shale gas as a source of fuel has also led to strong demand for this equipment for liquefied natural gas (LNG) across the globe, especially in the US.

The company plans to use the fresh capital to fund its organic expansion plans and potential acquisitions.

"The unprecedented shale gas supplies in the US are driving the use of LNG as a cheap and clean fuel in transportation and industrial applications," said SCPE Managing Director Mukul Nag. "We are excited to partner Inox as the Company capitalizes on the opportunities presented in the global market and develops into a multi-national corporation."

Over the next few years, the company's aim is to have a significant presence in all major global markets, including Europe. SCPE will help in this through its global oil and gas relationships.

Wadia Ghandy & Co. and Khaitan & Co were the legal advisers for SCPE and Inox, while the Indian firm received further support from Yes Bank.

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