DS Constructions lines up $2b for overseas buys

NEW DELHI: After acquiring Globeleq America’s assets, infrastructure firm DS Constructions (DSCL) is planning major expansion of its overseas power business with proposed acquisitions in Latin America, Canada and North Africa. The company has lined up investments of about $2 billion for making overseas acquisitions.

“We are looking at acquiring power plants with a capacity of about 400 MW in overseas market and have identified Latin America, Africa and Canada as initial target markets. The aim is to take up overseas power generation capacity to over 4000 MW in the next five to eight to years,” a company official told ET.

It is understood that the company is in advanced stages of negotiations with a hydro-electric project in Canada. It is also looking at Globeleq’s assets in Africa that is yet to be put on the block by the parent company.

Early this year, DSCL entered the overseas market by acquiring power assets of Globeleq America (about 2180 MW) in a joint venture with Israel Corporation for $542 million. The Israel Corporation also holds assets of Globeleq in Latin America.

“We hope to continue our partnership with Israel Corporation in future acquisitions, especially in the Latin American markets. However, we may partner with other firms or go solo, also depending on the proposals in hand,” he said.
In the domestic market, the company has bagged 1,000 MW Naying Hydro Electric Project in Arunachal Pradesh and a 260 MW Kutehr Hydro Project in Himachal Pradesh. It also qualified for bidding for two 1,200 MW thermal power projects in Punjab.

“We want to grow into a 10,000 MW power company by 2015. This would mean a total investment of about Rs 50,000 crore. We may also launch an initial public offer to raise resources at a later stage,” he said.

Apart from generation, DSCL is also keen to enter transmission and distribution business. The company may soon approach the regulator for clearance of its proposal.

DSCL is part of the $3-billion DS Group Companies with interests in hospitality, retail and trading, constructions and infrastructure development both in India and abroad.