Hyderabad: Hyderabad-based infrastructure and development company ECI Engineering and Construction Company Limited (ECI) has raised Rs100 crore in private equity capital through a preferential allotment to Sabre Abraaj India Private Equity Fund I Limited, a fund managed by Sabre Capital.

ECI will use this capital to expand its construction business, finance its investment in hydro power build-own-operate-transfer (BOOT) projects, and to build a modern manufacturing unit to fabricate steel towers required for their core power transmission and distribution (T&D) business.

Sabre  will be represented on the board of directors of the company by its co-founder and managing director Rajiv Maliwal.

ECI is a mid-sized infrastructure company that executes construction projects in power transmission and distribution (T&D), highways, railway electrification, hydro-power generation, irrigation and other civil infrastructure segments.

It  undertakes EPC contracts for customers such as National Highways Authority of India (NHAI), Power Grid Corporation of India Limited (PGCIL) and various state governments,  and has undertaken electrification work for the Indian Railways.

ECI has also commenced civil works for its hydro power generation projects for which it has received licenses on a build-own-operate-transfer (BOOT) model. ECI has developed competence and experience in executing projects in diverse regions of the country including the relatively under-penetrated North and North Eastern part of India which offers enormous potential for infrastructure development.

Speaking on the occasion, Venkat Rao, chairman, ECI said, "We are delighted to have Sabre as our valued investor and we strongly believe this partnership will propel the company to greater heights. Over the years, we have developed expertise in key segments of power, roads and irrigation and now the time is right to grow and cash in on the enormous opportunity that there exists in the infrastructure construction and development sector in India. With this investment, we will be able to expand our business by winning larger EPC contracts, bidding for higher voltage power transmission & distribution business, developing hydro power generation BOOT projects and setting up a tower manufacturing facility which will help us emerge as a focused and integrated player in the Indian infrastructure industry.''

Rajiv Maliwal said, "We believe infrastructure is key to India's growth and a well-managed mid-sized company like ECI is well poised to take advantage of the tremendous potential that the sector offers. ECI has a demonstrated track record of growth, a sound business strategy and a large order book which gives us confidence in the ability of the company to meet its growth targets. I am personally delighted to join the Board and contribute to the growth of this outstanding company."

Sabre Capital is a private equity firm that has a distinguished record of delivering significant returns in emerging markets by channeling financial and management resources into growth opportunities. In India, Sabre was instrumental in the successful turnaround of Centurion Bank through a unique business and capital restructuring, which it recently sold to HDFC Bank. Sabre is also an influential stakeholder in Lotus India Asset Management Company, a joint venture asset management company along with Fullerton Fund Management (a 100 per cent subsidiary of Temasek Holdings, Singapore.

Edelweiss acted as the sole financial advisor to ECI for this private placement.