Frontline Strategy picks up 26 pc stake in Shriram SEPL

MUMBAI: Mauritius-based Frontline Strategy has picked up 26 per cent stake in Shriram SEPL Composites for an undisclosed sum.

"We generally invest USD 5-15 million in a project and stay put for three to five years," a Frontline Strategy official said. He, however, declined to reveal the actual amount of investment in the firm.

Frontline Strategy invested in Shriram SEPL through its second SME-focused India Industrial Growth Fund, which the company launched in last February.

Frontline Strategy plans to raise USD 200 million through the fund.

Strategic Ventures Fund, the first SME-focused fund of the company, has USD 100 million assets under management.

A joint venture between Shriram EPC and Strategic Engineering, Shriram SEPL Composites manufactures glass fibre reinforced plastic pipe, which is used as an alternative to steel and concrete pipes for water and sewage and on-ground oil and gas pipelines.

"The investment in Shriram SEPL Composites is a continuation of Frontline Strategy's focus on investing in companies with global scope and capacity," Frontline Strategy's Managing partner Atim Kabra said in a release.

Shriram SEPL Composites has a manufacturing plant outside Chennai and it is in the process of putting up another plant nearby to its existing plant.