Citi Venture Capital International (CVCI) is reportedly holding talks to invest INR400crore in the cement unit of southern conglomerate Shriram Group, according to reports in the Times of India.

The Shriram Group initiated the process to sell a stake in Sree Jayajothi Cement which it had previously acquired a 70 per cent stake in earlier this year following the conversion of loans into equity. Private equity companies like Blackstone, Kohlberg Kravis Roberts & Co and Mount Kellet, had shown an initial interest but CVCI has emerged the frontrunner and is said to be in serious discussions.

"CVCI team, which manages India investments, has had detailed discussions with Shriram on the possible deal. It still has not reached a definite stage," a source told the newspaper.