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MARG KARAIKAL PORT ATTRACTS EQUITY INVESTMENT OF Rs 130 CRORES

~ Standard Chartered Private Equity invests Rs 130 crores in Karaikal Port Private Limited~

~ To fund development plans for further expansion of the port ~

~ To enhance the port's capacity from 21 MMTPA to 28 MMTPA ~

Chennai, June 27, 2012:: Karaikal Port Private Limited, a subsidiary of Chennai headquartered MARG Limited, one among India's fastest growing infrastructure companies, today announced that Standard Chartered Private Equity (Mauritius) II Limited has invested Rs. 130 crores (by way of primary and secondary investments) in MARG Karaikal Port for a minority stake. The primary subscription funds will be used for the MARG Karaikal Port expansion plans which will enhance the port's capacity from 21 MMTPA to 28 MMTPA.

MARG Karaikal Port, a premier, hi-tech, port on the south east coast of India is notably the only all-weather, deep-water, multi-commodity port between Chennai port and Tuticorin port and is strategically located in the middle of this 680 km coastline, which makes it the new gateway to the state of Tamil Nadu. Its combination of strategic location, state-of-the-art equipments and world-class infrastructure makes it the port of choice for industries and businesses located in and around Central Tamil Nadu and beyond.

Commenting on the investment,GRK Reddy, Chairman and Managing Director, MARG Limited said, "MARG Karaikal Port has already attracted private equity investments by India Infrastructure Fund, Ascent Capital Advisors and NYLIM Jacob Ballas India Fund III LLC, in the past. With the present investment by Standard Chartered Private Equity, MARG Karaikal Port has four institutional investors. Given the planned and existing efforts towards infrastructure development of Karaikal coupled with its healthy business and political environment, location advantage and state-of-the-art facilities, MARG Karaikal port is poised to be the most strategic and efficient port on the South East coast of India that will unleash the economic potential of central Tamil Nadu and Puducherry."

Speaking on the occasion,Rahul Raisurana, Managing Director, Standard Chartered Private Equitysaid,""There is strong demand for high quality port infrastructure to service expanding external trade and increasing needs for multiple commodities for the growing economy. This strong macro demand combined with several ports in the country already being capacity constrained or facing other logistical and infrastructural challenges presents a solid opportunity for newer and modern private sectors ports like Karaikal. We are delighted to partner with Karaikal Port which is well positioned to capitalize on this opportunity with its locational advantage, deep draft, increasing mechanization and efficient operations - strengths that are also well recognized by its growing premier customer base across sectors.."

Rahul Raisurana will be joining the Board of KPPL. Motilal Oswal Investment Advisors Pvt. Ltd acted as the transaction advisor for MARG Limited and KPPL.

MLN Acharyulu, Executive Director, Karaikal Port,further added "MARG Karaikal Port posted an impressive performance and it has consolidated its position as the new Maritime Gateway to Central Tamil Nadu. Going forward, MARG Karaikal Port is confident of setting higher standards of performance with the expected commissioning of mechanized dry bulk cargo handling facilities during the coming year as a part of Phase 2A development, which is likely to increase the annual cargo handling capacity exponentially. Higher discharge rates, no pre-berthing delays, faster turnaround times and savings in the integrated logistics costs vis-à-vis competing ports, have helped in attracting almost all major customers in the Central Tamil Nadu/ Puducherry region."

MARG Karaikal Port has shown its versatility by handling different types of cargo like coal, fertilizer, cement, raw sugar, project cargo, gypsum, containers, steel pipes, scrap, bagged sugar, construction material, edible oil, crude oil and petroleum products etc. The port has transformed the field of marine architecture by Master Planning, Engineering, Design, on and off shore construction, project management and value engineering. It is committed to continuously invest in high quality infrastructure to meet the future maritime trade needs of the region.

About MARG Karaikal Port:

MARG Karaikal Port is a premier, deepwater, all weather port on the South East coast of India. The Port has a sizable hinterland because of its strategic location. Awarded on BOT basis by the Government of Puducherry in 2006, MARG Karaikal Port when fully developed is envisaged to have a total of 9 berths capable of handling up to 45 MMTPA. The Port is to be developed over 3 phases with the final phase getting operational by 2017.

The Port's cargo handling capacity and capabilities increased significantly during the past 12 months as 2 new deep draft berths were operationalized, taking the total number of berths available at the Port to 5 at present. The Port has deployed dedicated infrastructure to handle containers and liquid cargo and expanded the existing facilities catering to dry bulk cargo.

MARG Karaikal Port's operational processes and practices are on par with the best in the industry and the Port has managed to bag ISO 9001, ISO 14001 and OHSAS 18001 certifications in a record time, demonstrating the maturity and quality of operational processes followed at the Port. More information on MARG Karaikal Port is available on http://www.karaikalport.com

About MARG:

MARG Limited (BSE: 530543), incorporated in 1994 and headquartered in Chennai, is an infrastructure major with presence across the value chain. The Company is listed on the Bombay Stock Exchange and its shares are traded on the NSE under the category of 'Permitted Security'.

With over two decades of reassuring presence and the credit of pioneering the development of economic growth centers, MARG's portfolio spans across the entire infrastructure value chain - urban and industrial infrastructure, urban residential clusters, marine infrastructure & services, malls and EPC division. Listed by Dun & Bradstreet among "India's Top 500 Companies 2010", today MARG Group has projects worth more than Rs. 3400 crores under execution, a seasoned human capital of more than 1100, global partners in the Infra space and offices spread across India, Singapore and China.

More information on MARG is available on http://www.marggroup.com

Standard Chartered – leading the way in Asia, Africa and the Middle East

Standard Chartered PLC, listed on London, Hong Kong and Indian stock exchanges, ranks among the top 25 companies in the FTSE-100 by market capitalization. The London-headquartered Group has operated for over 150 years in some of the world's most dynamic markets, leading the way in Asia, Africa and the Middle East. Its income and profits have more than doubled over the last five years primarily as a result of organic growth. For more information on Standard Chartered, please visit www.standardchartered.com.

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