Companies

Shri Kailash Logistics in talks with PE players to raise funds

V Sajeev Kumar Kochi | Updated on July 02, 2014

Shri Kailash Logistics Ltd, a part of the ₹500-crore Chennai-based group Shri Kailash group, is mulling the option of tapping private equity (PE) majors to raise resources.

It has already opened parleys with a couple of potential private equity investors and a deal is expected to be closed soon. The company is going for a third round of expansion which will go a long way in putting it on top of the logistics map of South India.

R Rajkumar, Managing Director, Shri Kailash Logistics, said that the company is in the advanced stage of discussions with a number of PE players, and a final decision is expected to be taken soon.

“We are in touch with a number of private equity players to raise funds to finance our next stage expansion plans. However, we have not finalised the deal yet. A decision can be expected very soon,” he said.

Logistics park

The Chennai-based Shri Kailash group has interests in logistics and real estate other than the paper industry. The group, which has a major interest in fleet logistics, has developed a first-of-its-kind logistics park at Oragadam near Chennai.

The park is spread over 56 acres and has targeted warehousing service space of 13.18 lakh sq ft with all modern service facilities and infrastructure built in.

The warehouses are designed and constructed as per international standards. The company is on the verge of completing an additional 6,00,000 sq ft by November and has already commissioned the park with all its integrated services.

The future plan is to bring in strategic/alliance partners for the potential development of the park. The upcoming block of 7,90,000 sq ft of warehouses will be the first of its proposed business model.

The third phase of 7,18,000 sq ft is expected to be completed by September 2016 thereby ensuring the full utilisation of the existing land bank.

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Published on July 02, 2014
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