SREI-BNP JV to enter into agri, medical equipment business

Kolkata, Jun 19 (UNI) SREI Infrastructure Finance Limited(SIFL), in a joint venture agreement with BNP Paribas Leasing Group, will enter into new business ventures like agriculture, office and medical equipment infrastructure funding and insurance broking.

Speaking to medipersons here today, SREI Managing Director Hemant Kanoria said ,''With BNP's wide array of experience in these sectors, apart from equipment financing, the SPV formed by the two companies will enter European market.'' BNP Paribas has an asset size of 14 billion Euro and more than 25 per cent share of European market.

SIFL has entered into 50:50 joint venture with BNP Paribas three weeks back.

''With this new tie up, an extra Rs 775 crore capital has been infused and the networth of the company has increased from Rs 450 crore to around Rs 1300 crore,'' he said.

''We have not yet finalised the name of the new joint venture company,'' Mr Kanoria said.

However, SIFL would continue its own line of business in infrastructure financing, which is its core business focus. SIFL has already bagged seven projects in road sector and have already bid for another 14 new projects in road, ports and power sector.

SREI's total Assets Under Management(AUM) was Rs 5,083 crore at the end of 2006-07 compared to Rs 3400 crore in the corresponding period in the previous fiscal.

The company reported 64 per cent increase in net profit at Rs 79.2 crore in 2006-07 compared to Rs 48.4 crore in the corresponding period last fiscal.

The company disbursed Rs 4400 crore in the last fiscal compared to Rs 2500 crore in the corresponding period last year.

UNI