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IFC To Invest Up To $24M In IDFC PE-backed Doshion

20 March, 2012

IFC, the private sector investment arm of World Bank, may invest up to $24 million (Rs 120 crore) in IDFC Private Equity-backed water management company Doshion Ltd through an equity/quasi-equity investment to finance expansion-related capital expenditure, long-term working capital and upcoming Build-Own-Operate-Transfer (BOOT)-based water projects, cross-country pipelines and other EPC projects.

Ahmedabad-based Doshion was incorporated in 1978 by Dhirajlal Shivlal Doshi as a partnership in the business of manufacturing resins. Since then, it has expanded into a full-fledged water cycle management company. It provides water management solutions including supplying custom-made water treatment plants and waste water treatment plants used in industries like power, refineries, pharmaceuticals, SEZs, airports, ports, metals, chemicals, textiles, etc. Its customers include municipalities and leading industrial players across India and overseas.

The firm now plans to expand its reach in India and develop several new EPC and BOOT projects across the country.

The current shareholders of the company include the promoters, as well as IDFC Private Equity Fund, which invested Rs 35 crore more than four years ago.

IFC’s investment will be at the corporate level and will be used to fund several upcoming projects spread across India.

The company also has a subsidiary called Doshion Veolia Water Solutions Ltd, which is a joint venture with French major Veolia Water Solutions and Technologies.

Last year, Doshion Veolia acquired water and sewage treatment services firm Gondwana Engineers Ltd from Kirloskar Brothers. Nagpur-based Gondwana Engineers is a three-decade-old firm, started by technocrat SD Shangarpawar. It specialises in various water, sewage and effluent treatment plants, and is also engaged in operation and maintenance of various treatment plants.

Water purification and waste water treatment services have been one of the more happening areas of infrastructure services with investors striking back-to-back deals in the business. Earlier this year, engineering firm Praj Industries acquired a majority stake in Neela Systems Ltd for approximately Rs 64 crore ($12 million), valuing the privately held water treatment firm at Rs 127.5 crore.

Previously, Matrix Partners India invested Rs 22 crore in Waterlife India Pvt Ltd, a Hyderabad-based water purification company. Last September, Aditya Birla Capital Advisors, the private equity arm of Aditya Birla Financial Services Group, made its debut deal from its second fund by investing Rs 40 crore in SMS Paryavaran, a water and wastewater treatment company.

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IFC To Invest Up To $24M In IDFC PE-backed Doshion

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