Blackstone Group mulls infrastructure fund

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Mumbai: Blackstone Group LP's India head said on Wednesday that the firm is considering an infrastructure fund, as the industry and the companies that serve it offer excellent value, particularly in India, though he expects to wait around three months before putting money there.

"We are thinking of raising an infrastructure fund ourselves," said Akhil Gupta, chairman of Blackstone India, though he cautioned that plans were very preliminary and only in discussion phase.

Speaking at a summit, Gupta said infrastructure valuations were cheap, and he was bullish on the industry's prospects in India, which is desperate for new road, water, and energy projects.

"Infrastructure stocks have come to a point they are valuable but we need to be cautious," he said. "I think we have got to wait for another three months to see how it unfolds."

Gupta was less excited in the near term about the prospects of India's media sector.

"The bad news in the media sector is not fully reflected," he said, explaining he expected India's highly fragmented and competitive media business to suffer from a slump in advertising sales. Challenges facing India's infrastructure sector are reflected, he said.

One investment he mentioned was the $65 million Blackstone paid for a minority stake last November in Indian engineering firm MTAR Technologies Pvt Ltd. MTAR makes machined parts for nuclear, space and defence projects, as well as engine and structural components for aerospace and defence applications.