Leighton Holdings Ltd (ASX: LEI) had completed the sale of a 35 per cent stake in its Indian operations to leading diversified Indian conglomerate, Welspun Group. The Australian company said payment was received yesterday.

Leighton Holdings’ Chief Executive, Mr David Stewart, said that it was pleasing to finalise the transaction which opened up a new era of opportunity for Leighton in India.

“We will build a strategic partnership with Welspun that can capitalise on the enormous opportunities that are emerging in the Indian infrastructure sector. The strategic partnership combines Leighton’s international construction capability and Welspun’s significant local market knowledge, a pipeline of construction work and preparedness to invest in infrastructure projects,” said Mr Stewart.

The US$3 billion Welspun Group is a leading diversified Indian conglomerate with interests in infrastructure, oil and gas, steel, steel pipes, and home textiles. The Group has a global presence, operating in more than 50 countries and in 2009/10 had annual revenues of around US$1.6 billion.

“For Leighton, partnering with a local partner clearly provides greater access to the market and is a strategic move which aims to capitalise on the many concessions based projects -which have similar characteristics to PPP’s - and infrastructure opportunities that are emerging in India. The Indian Government is planning to spend US$1 trillion on infrastructure projects during the XII Plan between 2012 and 2017, which should offer a wide range of projects for the new partnership to deliver,” said Mr Stewart.

Leighton India is already working on a number of projects in India including a US$585m joint venture to construct the Chenani-Nashri road tunnel in Northern India, construction of two ports at Visakhapatnam and Paradip, building of the US$230 million Ramanujan IT Park in Chennai for Tata, and construction of three oil and gas projects valued at US$840 million.

“We see India as a major growth market in the future offering us the opportunity to develop a focused, diversified and sustainable business. In particular, the strategic partnership with Welspun will pursue opportunities in the transport and power sectors which play to Leighton’s existing contracting capability and experience.” Mr Stewart said.

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