HYDERABAD, India — India Infrastructure Equipment Ltd, also known as Quipo, India's largest equipment rental company, last month said it has entered the energy rental market and plans to invest up to 6 billion rupees, about U.S. $132 million, in the new business over the next five years.

IIEL has set up a separate division Quipo Energy Rental to provide gas-based power generating equipment to various industries in the textiles, oil and gas, and telecom sectors.

Quipo Energy chief executive Hermant Pincha told media the company “would invest 250 million rupees (about $5.5 million) in the venture in the first year” and may invest up to ($132 million) over the next five. Pincha added the initial investment would be funded by a mixture of debt and equity. He said that once the business is established, the division could become a separate company that would go public for capital.

Pincha said the initial investment would be in equipment and facilities. The company's goal is about 2.5 billion rupees (about $55 million) in revenue within five years, Pincha said.

Pincha said the first hub would be set up in Ahmedabad to tap the area's industrial market. The company's goal, he said, was to add three more branches in India, as well as Singapore and Dubai.