Nuziveedu to divest power assets

BANGALORE: A Hyderabad-based biotech company has appointed a financial advisor to sell its power assets estimated to be worth about 1,000 crore. Nuziveedu Seeds, India's fourth largest biotech firm, is developing two power projects based in Tamil Nadu and Orissa through its fully-owned subsidiary NSL Power. The firm decided some time ago to sell a substantial stake in the business to companies with expertise in the sector, a company official said.

The official said Aditya Birla Group had earlier shown interest in NSL Power though no such talks are progressing at this stage. An Aditya Birla spokesperson refused to comment.

A banker source said European power producer Suez is believed to have shown interest. Suez spokesperson decline to comment on this situation. NSL, however, is not in talks with its private equity partner Blackstone for current capital raise plans, the company official said.

This statement assumes significance since there are rumours that the PE fund is keen to invest in Indian power sector, "We need strategic investors and not financial investors," the official said. PE fund Blackstone had invested around 400 crore for a minority stake in parent company Nuziveedu Seeds in 2008. The seeds maker then had 500-crore revenues.

Nuziveedu's power business includes a 1,320 MW coal-based project in Nagapattinam, Tamil Nadu, and another similar capacity project in Orissa.