VINCI's Ambitious Move in India: A New Motorway Concession
VINCI Highways, a key subsidiary of VINCI Concessions, has made a notable advancement by acquiring a 51% stake in HKR Roadways Limited, the operator of the SH1 motorway near Hyderabad. This strategic investment underscores VINCI's commitment to improving infrastructure in emerging markets.
Acquisition Agreement Details
The motorway concession encompasses 206 kilometers of essential roadway, with the contract running until 2041. VINCI's investment in this venture amounts to around €40 million, and the deal is expected to be completed by the end of the year, pending necessary regulatory approvals.
Significance of the SH1 Motorway
Launched in 2014, the SH1 motorway plays a crucial role in linking Hyderabad, a vibrant city with a population of 11 million, to the north-eastern regions of Telangana. Its completion significantly improves local transportation and bolsters economic activities in the surrounding areas.
Partnership with Global Infrastructure Partners
This acquisition is a collaborative effort for VINCI, as it partners with Global Infrastructure Partners' Emerging Markets Fund, while maintaining majority control over the concession. This partnership reflects previous strategic collaborations, such as those made during major investments in London Gatwick and Edinburgh airports.
VINCI's Continued Commitment to India
VINCI has already established a strong presence in India through its subsidiary ViaPlus, which specializes in electronic toll systems. This subsidiary employs nearly 400 people in Hyderabad and highlights VINCI's dedication to utilizing technology to enhance infrastructure services.
About VINCI
VINCI is a prominent player in the fields of concessions, energy, and construction, with a workforce exceeding 280,000 across more than 120 countries. The company's mission focuses on designing, financing, constructing, and operating infrastructure and facilities that enhance daily life and mobility. VINCI is committed to environmentally and socially responsible practices, aiming to create lasting value for customers, shareholders, employees, and society as a whole.
For media inquiries, please reach out to:
VINCI Press Department
Tel: +33 (0)1 57 98 62 88
Email: media.relations@vinci.com
Frequently Asked Questions
What stake did VINCI acquire in the motorway concession?
VINCI acquired a 51% stake in HKR Roadways Limited, which manages the SH1 motorway.
When is the acquisition expected to be finalized?
The acquisition is anticipated to be finalized by the end of 2024, contingent on obtaining the necessary approvals.
How long is the concession contract for the SH1 motorway?
The concession contract for the SH1 motorway extends until 2041.
What is the significance of the SH1 motorway?
The SH1 motorway serves as a vital connection between Hyderabad and the north-east of Telangana, enhancing regional mobility and promoting economic development.
How does this acquisition support VINCI's global strategy?
This acquisition bolsters VINCI's global footprint and reinforces its commitment to developing infrastructure in emerging markets.
