Coastal Projects Limited, Hyderabad-based tunnel engineering company with a turnover of over Rs 1,300 crore, has announced that it has acquired 26% stake in SELI (Societa Esecuzione Lavori Idraulici S.p.A), one of the world’s most experienced tunneling contractors based in Italy, for a total consideration of EUR 17.85 million (approx. Rs 108 crore).
Italy-based SELI has established operations across the world including India. SELI also designs & builds hard rock and soft ground tunnel boring machines and auxiliary equipments in its manufacturing facility in Italy. SELI has completed more than 520 km of tunnels with the use of mechanized excavation systems and has completed 68 projects around the world.
Coastal has completed over 75 km of tunnelling work and presently has 250 km under execution. The company is backed by prominent global private equity investors like Baring, Sequoia Capital, Fidelity and Deutsche Bank and has an order book of over Rs 7,500 crore.
Coastal Projects and SELI have also agreed to work together in South Asia. With increased number of tunneling projects in India expected to be implemented using Tunnel Boring Machines (TBMs), Coastal Projects stands to benefit from its association with SELI as it also designs and builds hard rock and soft ground tunnel boring machines and auxiliary equipment.
Coastal Projects already owns three TBMs in India and SELI’s global expertise in operations and manufacturing of these machines will be a key differentiator at the time of bidding and execution of projects.
Motilal Oswal Investment Advisors Pvt Ltd acted as the financial advisor to Coastal for this transaction.