Tata Realty & Infrastructure Limited, Piramal Group may join hands for infrastructure business

Big guns of corporate India are gearing up to make full use of the infrastructure opportunity presented by Narendra Modi's government. Sources with direct knowledge share that Tata Group chairman, Cyrus Mistry and Ajay Piramal who heads the Piramal Group are in talks to join hands for the infrastructure business in India.

A source with direct knowledge shared that Cyrus Mistry and Ajay Piramal met recently to finalise the collaboration of the two groups in this direction.

Sources suggest that TRIL or Tata Realty & Infrastructure Limited may form a joint venture with the Piramal Group for owning and operating infrastructure assets. Talks are hovering around Piramal even buying stake in TRIL, a source said. Piramal Group may be seen funding the acquisition of infrastructure assets in the venture.

Both the groups have in the recent past showed their focus on the infrastructure sector. Cyrus Mistry, while presenting the Vision 2025 of the Tata Group said, "To maximise synergies, the group is creating a special focus on four new clusters: Defence & Aerospace, Retail, Infrastructure, Finance." He also said that in order to achieve the vision, "Tata Group will be investing about $35 billion in the next 3 years."

Ajay Piramal’s Piramal Enterprises has tied up with Dutch pension fund APG to invest $1 bn in the infrastructure sector. The company recently invested in road projects like Navayuga Road and is looking at many more such projects. It is also said to be in talks with IL&FS to acquire their infra assets.

When contacted, Piramal Group spokesperson said, "we would not like to comment on market speculations." Tata Realty & Infra did not respond to an ET Now query.