CRISIL today announced the sale of 90 per cent of the equity in its UK subsidiary, Gas Strategies Group Ltd (GSG) to the management team of the company, retining a 10-per cent minority shareholding.

CRISIL acquired GSG, a provider of consulting, training and information services for the international gas and LNG business, in December 2003.

GSG's revenues are predominantly from Europe and the UK. For the nine-month period ended September 2008, GSG's revenues of Rs38.75 crore were 10 per cent of CRISIL group's consolidated revenues and profit before tax was Rs4.27 crore, amounting to 3 per cent of CRISIL's consolidated profit before tax.

The sale of GSG follows a review of CRISIL's strategy in the infrastructure advisory business. CRISIL's infrastructure advisory business will now focus on opportunities in India and other emerging markets by aligning with the flow investments in infrastructure planned in these markets.

According to CRISIL, estimates of infrastructure investments in emerging market countries vary from $4 trillion over a 10 year period to $21.7 trillion till 2020. This flow of investments is expected to generate numerous opportunities in the areas of policy formulation, creating enabling environments and institutional frameworks, public private partnerships, bid process management etc., which are the core strengths of CRISIL Infrastructure Advisory.

CRISIL Infrastructure Advisory is already active outside India and has several ongoing engagements in Africa, Middle East and South East Asia.

According to the credit rating agency, "Further investments will be made in this area of strategic thrust.

"The sale of GSG is in line with our strategy to focus on emerging markets in our Infrastructure Advisory business," said Roopa Kudva, managing director and CEO, CRISIL Limited on the GSG divestment.

She said, "The management team of GSG was instrumental in the growth of the business. We are happy that they are acquiring control. CRISIL is focused on enhancing shareholder value. Our strategy of diversifying revenue streams over Ratings, Research and Advisory businesses and across geographies has provided stability and growth over the years. We will continue to invest in all our businesses to further this strategy.''