KKR & Co Launches Third InvIT In India With Focus On Roads Sector

Global private equity firm KKR & Co. has launched a roads infrastructure investment trust in India.

The Highways Infrastructure Trust is KKR’s third infrastructure investment trust in India, besides Virescent Renewable Energy Trust—India’s first renewable energy InvIT—and India Grid Trust, a transmissions InvIT, according to a media statement.

Together, these platforms operate and manage 33 assets valued at more than $3.8 billion across 22 states or union territories of India.

Highways Infrastructure Trust's initial portfolio comprises six road assets with a length of over 450 kilometres across six states. The assets include a diversified mix of toll and annuity roads located in Gujarat, Madhya Pradesh, Meghalaya, Rajasthan, Tamil Nadu and Telangana.

Also, KKR said the trust is considering a pipeline of acquisition targets. "The platform possesses significant growth potential and seeks to invest in high-quality assets, including through bolt-on acquisitions."

"HIT’s launch takes place on the back of growing demand to expand India’s road network, the second-largest globally, as passenger traffic and commercial vehicle traffic continue to increase," it said. The firm sees transportation, renewable energy, and electricity transmissions as core to its infrastructure strategy in India.

Apart from the trusts, KKR & Co. is an investor in Reliance Industries Ltd.'s telecom and retail ventures. It is also an active investor in home interior company Livspace, Shriram General Insurance Ltd., Max Healthcare Institute Ltd. and Vini Cosmetics Pvt., among others.