US private-equity giant The Blackstone Group has announced an investment of $65 million in the Hyderabad-based Machine Tool Aids & Reconditioning Technologies.
Hyderabad firm is a supplier to nuclear, space programmes
HYDERABAD: US private-equity giant The Blackstone Group has announced an investment of $65 million in the Hyderabad-based Machine Tool Aids & Reconditioning Technologies Pvt Ltd (MTAR), a 37- year-old company supplying high-precision engineering solutions to the Indian nuclear and space programmes.
The investment is subject to regulatory approvals.
The funding will be a mix of primary and secondary equity, Blackstone said, without specifying how much stake this would translate into.
MTAR will continue to be led by the original founders and the existing management team that has been instrumental in achieving strong growth and market leadership, it said.
The company’s major customers include the Nuclear Power Corporation of India Ltd. (NPIL), Isro, HAL, BARC and ONGC.
It is one of the three private sector companies involved in the manufacture of cryogenic engines for the Indian space programme (Godrej and Keltech are the other two), and has three other group companies, MARC, MONTAGE and MTS, which are involved in the manufacture of various components.
MTAR is also involved in the Light Combat Aircraft (LCA) project being undertaken by the Indian defence establishment to make a single-seat, single-engine, supersonic, light-weight, all-weather, multi-role, air superiority fighter.
“MTAR is a sector leader with very unique skill sets, capabilities and in-depth understanding of a very niche and high potential industry.
We are very enthusiastic about this investment as we foresee a huge growth opportunity for MTAR, both in the domestic and global markets,” Akhil Gupta, chairman, Blackstone Advisors India Private Limited, said.
“This partnership is the key to our ambitious growth plans. In addition to helping us scale up our operations in terms of management expertise, global best practices and technology, this deal will also give us access to Blackstone’s global network,” Ravindra Reddy, chairman, MTAR, said.
MTAR, which is looking to expand its highly skilled workforce and tapping the international markets, was in the news in 1998 when it was subjected to US sanctions, immediately after the nuclear tests by India.
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