GRI interviews infra investors: Josep Perez (Isadak)
We have plans to grow in India and increase our asset portfolio in 12-24 months, says CEO at Abertis India Toll Roads.
November 27, 2018Infrastructure
GRI Hub is interviewing a number of major investors about the current scenario and prospects for infrastructure investments in India. This will be one of the main topics under discussion at the Infra India GRI 2019, which will take place on January 29th and 30th in Delhi.
Here's what Josep Quiles Perez, CEO at Isadak (Abertis Group), says:
Is your company planning to invest in the infrastructure sector in India in the next 12-24 months?
We have plans to grow in India and increase our asset portfolio in the following 12-24 months. We look into the toll roads assets available in the market. As far as they fit into our strategy we will invest in them.
In your opinion, does the Indian infrastructure offer good opportunities in terms of risk-return?
There are opportunities, good or bad. It is in our hands to adjust the valuation to a reasonable risk-return equation. We are seeing transactions that may be seen as aggressive from our perspective, but time will say.
Which Indian infrastructure segments seem to be more attractive now?
We are focused only on toll roads.
Do you see any kind of obstacle when it comes to global players investing in the Indian infrastructure? How is it possible to face them?
There are constraints in the financial markets and India needs to work on developing them in its different aspects, tenures, products and liquidity. This aspects become some time more relevant barriers than tax and legal issues, aspect in which the government has been working on and taken steps on the right direction to facilitate them.
Do you believe local investors have any kind of advantage or disadvantage when investing in the Indian infrastructure when compared to global investors?
Local investors don’t face some of the barriers mentioned above that international investors have to deal with. The knowledge of the local market also creates an advantage on managing some of the risks that locals are in a better position to manage.
How do you compare the Indian infrastructure sector to other countries – specially emerging ones – in terms of attractiveness for investments?
Each emerging market has its own dynamics. India is having a clear path to attract foreign investment to the Infrastructure sector. India has understood that foreign investment is needed to achieve the objectives of growth that the government has in the sector. As a consequence, they have started to take actions on the legislation and tax applicable to foreign investments to make it attractive.
Here's what Josep Quiles Perez, CEO at Isadak (Abertis Group), says:
Is your company planning to invest in the infrastructure sector in India in the next 12-24 months?
We have plans to grow in India and increase our asset portfolio in the following 12-24 months. We look into the toll roads assets available in the market. As far as they fit into our strategy we will invest in them.
In your opinion, does the Indian infrastructure offer good opportunities in terms of risk-return?
There are opportunities, good or bad. It is in our hands to adjust the valuation to a reasonable risk-return equation. We are seeing transactions that may be seen as aggressive from our perspective, but time will say.
Which Indian infrastructure segments seem to be more attractive now?
We are focused only on toll roads.
Do you see any kind of obstacle when it comes to global players investing in the Indian infrastructure? How is it possible to face them?
There are constraints in the financial markets and India needs to work on developing them in its different aspects, tenures, products and liquidity. This aspects become some time more relevant barriers than tax and legal issues, aspect in which the government has been working on and taken steps on the right direction to facilitate them.
Do you believe local investors have any kind of advantage or disadvantage when investing in the Indian infrastructure when compared to global investors?
Local investors don’t face some of the barriers mentioned above that international investors have to deal with. The knowledge of the local market also creates an advantage on managing some of the risks that locals are in a better position to manage.
How do you compare the Indian infrastructure sector to other countries – specially emerging ones – in terms of attractiveness for investments?
Each emerging market has its own dynamics. India is having a clear path to attract foreign investment to the Infrastructure sector. India has understood that foreign investment is needed to achieve the objectives of growth that the government has in the sector. As a consequence, they have started to take actions on the legislation and tax applicable to foreign investments to make it attractive.
