3i, a global private equity and venture capital firm, is investing $25.8 million for an undisclosed minority stake in Vijai Electricals, a power transmission and distribution equipment manufacturer in India.
Anil Ahuja, managing director of 3i India said: “India is witnessing significant growth, driven by government spending, in the power sector particularly in transmission and distribution.”
The investment in Vijai comes shortly after 3i made its foray into India’s real estate market. 3i has invested $40m in a $160 million India-focused real estate fund promoted by Indian business tycoon Ajay Piramal.
3i made its first investment in India in August 2005 when it invested $45 million in Nimbus Communications, a media and entertainment company. To date, including Vijai, 3i has committed to five investments in India.