Anil Agarwal eyeing Indian disinvestment program with a $10 bn war chest
Commodities tycoon Anil Agarwal is planning to invest $10 billion through a new partnership targeting government privatisations in India.
The billionaire is teaming up with London-based Centricus Asset Management Ltd. to seek investments in Indian companies offering substantial growth opportunities, according to a statement Thursday. They will look to turn around companies being sold off as part of the country’s Rs 2.1 trillion ($29 billion) divestment program.
Agarwal made a fortune buying state companies and fixing them up, building a metals and mining powerhouse under the umbrella of Vedanta Resources Ltd. He’s now seeking to repeat that success, betting he can spot gems among the dozens of companies being put on the block by Prime Minister Narendra Modi’s administration.
The entrepreneurial dynamism in India “can be harnessed to unlock incredible transformation in the public sector,” Agarwal said in the statement. “We believe that this strategy can, and will, play a crucial role in the country’s ongoing industrialization.”
The billionaire plans to help former government companies accelerate their transformation into private-sector firms with professional management, according to the statement. Vedanta is among the parties that have expressed interest in acquiring India’s stake in $12 billion refiner Bharat Petroleum Corp.
Agarwal and Centricus have been seeking to raise capital from international investors to deploy in such turnaround opportunities, Bloomberg News first reported in September. They have been planning a fund with a 10-year life span that will use a private equity-type strategy, buying into companies and boosting their profitability before seeking an exit, a person with knowledge of the matter has said.
A former metals trader, Agarwal built his business through a series of ambitious acquisitions over the past few decades, including a 2001 deal to take control of government-owned Bharat Aluminium Co. in one of the first tests of India’s efforts to offload state holdings. He now has a net worth of $2.5 billion, according to the Bloomberg Billionaires Index.
Centricus oversees $28 billion in assets, according to its website. The firm was founded in 2016 by Nizar Al-Bassam, a former investment banker at Deutsche Bank AG, and ex-Goldman Sachs Group Inc. partner Dalinc Ariburnu. Centricus advised SoftBank Group Corp. on the creation of its $100 billion Vision Fund and also worked on its $3.3 billion takeover of Fortress Investment Group LLC.
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
