Hindustan Infralog Pvt Ltd. (HIPL), a joint venture between DP World and National Investment and Infrastructure Fund (NIIF) of India, has announced the acquisition of 90% stake in Continental Warehousing Corporation (Nhava Seva) Ltd. (CWCNSL), an integrated multimodal logistics player in India for an unspecified amount.
Existing investors exit
Private equity majors Warburg Pincus, IFC and Aureos have exited their investment in this transaction.
CWCNSL’s founders, the Reddy family, will retain the remaining 10% stake and will continued to be involved in the running of the business.
“The purchase consideration is below 5% of DP World’s net asset value as of FY2017”, the joint venture firm said in a statement, without quantifying the value.
It is the first investment of HIPL, the recently created investment vehicle set up by DP World and NIIF to invest up to $3 billion in ports, logistics and related sectors in India.
Founded in 1997, CWCNSL is an integrated, multimodal logistics provider of warehousing services, container freight stations, inland container depots, private freight terminals and integrated logistics solutions.
DP World has been operating container port terminals in India since 1997 and operates in six locations in the country with more than six million TEU of gross capacity. It also operates container trains connecting ports to the hinterland.
Sultan Ahmed Bin Sulayem, group chairman and CEO, DP World, said: “As a global trade enabler, we aim to grow in complementary sectors of the global supply chain, which includes inland container terminals, freight corridors and logistics infrastructure.”
“The acquisition of Continental Warehousing Corporation provides us with a scalable platform to accelerate growth in the rapidly evolving logistics sector in India,” he added.
