Agri-logistics player Shree Shubham Logistics has concluded an agreement with Tano India Pvt Equity Fund to raise Rs 80 crore to fund its capacity expansion plans.

Shubham Logistics, a subsidiary of Kalpataru Power Transmission Ltd, currently operates about 90 agri-warehouses across India with a total capacity of about 11 lakh tonnes (lt). Out of this, the company owns an inventory of 3.6 lt, the rest is operated through tie-ups and long-term lease contracts.

“The fund will support our expansion plans in Maharashtra, Rajasthan, Madhya Pradesh and down south in Andhra Pradesh and Karnataka,” Aditya Bafna, Executive Director, told Business Line.

He said Tano would now hold a minority stake of below 20 per cent in the company.

Tano is currently investing from its second India fund, Tano India Private Equity Fund II. Tano Capital was founded by Charles E. Johnson, formerly Co-President of Franklin Templeton Investments and CEO of Templeton Worldwide Inc.

The logistics firm, which provides the entire range of warehousing services, including transportation, grading, sorting, testing, storage and fincing of agri commodities, is executing a Rs 270-crore capacity expansion programme.

“We will be adding a new warehousing capacity of about 2.4 lakh tonnes by October this year, as part of this expansion. These facilities are coming up in Maharashtra, Rajasthan and Madhya Pradesh,” Bafna said.

After this phase, the company has plans to take up another Rs 200 crore expansion to add a capacity of about four lt in the next two years. “After this, we will own about 10 lakh tonnes of capacity and operate a total of 20 lakh tonnes warehousing capacity,” he said.

(This article was published on April 15, 2013)
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