SCPE scores proprietary cryogenic storage deal

This last advantage was of particular benefit last week to Standard Chartered Private Equity (SCPE), which capitalized on Standard Chartered Bank's long-standing relationship with Inox India, a major global manufacturer of cryogenic storage and transportation equipment, to broker an INR2.5 billion ($45 million) investment into the company.

In exchange for its capital, SCPE will get a significant minority stake in the firm, whose cryogenic storage equipment is used by industrial clients for storing and distributing gases such as oxygen and nitrogen. The introduction of shale gas as a source of fuel has also led to strong worldwide demand for this equipment for liquefied natural gas (LNG), especially in the US.

Inox India is one of the few global suppliers of with a track record of supplying cryogenic storage equipment to Fortune 500 customers.

Other firms operating in the LNG space have also received significant interest from private equity this year. Earlier this month, China Investment Corporation (CIC) and Government of Singapore Investment Corp. (GIC) invested $1 billion in Cheniere Energy's LNG plant, the first such export-oriented facility in the US. Temasek Holdings and RRJ Capital previously invested in this company as well as another LNG specialist, Kunlun Energy.

Inox India plans to use the fresh capital - its first round of external funding - to finance its organic expansion plans and potential acquisitions. "The size and the long term outlook for the shale gas and LNG transportation opportunity in the US (and globally) provides a very attractive opportunity for Inox," SCPE Global Co-Head Nainesh Jaisingh told AVCJ.

Over the next few years, the company's aim is to have a significant presence in all major global markets, including Europe. SCPE will assist through its global oil and gas relationships. It has appointed Mukul Nag, managing director at SCPE India, and Peter Godfrey, head of oil and gas at Standard Chartered Principal Finance, to the Inox India board.

Wadia Ghandy & Co. and Khaitan & Co. were the legal advisers for SCPE and Inox, while Yes Bank provided the company with corporate finance advice. "INOXCVA is one of the world's leading players in the gas transportation space - which is going through an inflexion point globally," said Jaisingh. "The high quality management team and track record with international clients make this a very exciting opportunity for us."

He added that SCPE will continue to pursue its strategy of backing large, emerging and mid-cap businesses in India. "We have a track record of helping companies make the next league, and we intend to use this experience even more in the current challenging environment."

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• Topics
• South Asia
• Industrials
• Expansion
• Standard Chartered Private Equity
• India
• Growth capital