Private equity firm BanyanTree Growth Capital LLC has invested an undisclosed amount in Faridabad-based pre-fabricated piping systems provider Dee Development Engineers Limited. Dee Development provides services primarily to the oil & gas, power sector & process industry. The deal will involve BanyanTree picking up a minority stake in Dee Development and take a board seat.
The deal will be BanyanTree's second investment in power ancillary space. It has also invested in GEI Industrial Systems Ltd, a manufacturer of air-cooled heat exchangers and condensers.GEI last month raised Rs 62.5 crore from Aditya Birla Private Equity Fund for its second round of funding.
Dee Development was established in 1983 as a design consultancy firm and now provides pre-fabricated piping systems and pipe fittings for international players like MAN, Siemens, Doosan, Alstom and also
domestic firms like Thermax, ISGEC John Thompson, BHEL, Adani, L&T and others. It has experience for working on power plants from less than 100 MW to upto 3300 MW, including super-critical power plants. The transaction was advised by SMC Capitals.
The firm has been promoted by first generation entrepreneur K L Bansal and claims to be five times as large as its nearest independent competitor. The funding will allow the company to further consolidate
its position in the industry and help with its foray in the upcoming segments like power EPC space.
Dee Development has installed two bio-mass based power plants of 7.5 MW and 8 MW, both in the state of Punjab. It is also planning to set another biomass plant in Madhya Pradesh by 2011.
The deal marks BanyanTree Growth Capital’s sixth investment in India. Banyan Tree Capital Advisors closed its first India focused fund, Banyan Tree Growth Capital LLC, at $100 million in July last year. The fund was anchored by FMO and DEG, the development financial institutions of Netherlands and Germany, respectively BanyanTree's other portfolio investments includes Deepak Fasteners, Trimax IT Infrastructure Systems and Axiom Cordages.