Companies

Gati in talks with MNCs for stake sale in cold chain unit

Mamuni Das New Delhi | Updated on March 12, 2018 Published on August 03, 2013

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Logistics firm Gati Ltd is in talks with two global firms for a partial stake sale in its cold chain subsidiary Gati Kausar. However, Gati wants to continue holding majority stake in Kausar as it expects to see a 25 per cent growth this year in the segment.

The investor will be strategic (a company with expertise in cold chain logistics) as the aim is to get additional equity as well as the benefit of global practices. Gati Kausar plans to set up two warehouses, one each near Delhi and Mumbai.

“After the stake sale, we will continue to hold the majority stake in Gati Kausar. The divestment should be completed by December..,” Gati Kausar’s Director for Finance Sanjeev Jain told Business Line in an earnings call.

Jain, however, did not disclose the name or geographies to which these firms belong.

For the year ended June 30 2012-13 (company’s financial year runs from July to June), Gati Kausar registered 14 per cent growth, with revenues of Rs 46 crore.

Gati Ltd is a listed firm, with investments from Japanese firm KWE and GE Financials in different subsidiaries.

Gati Kausar, with a fleet of 213 refrigerated vehicles, is the second largest cold chain player after Snowman Logistics, claims Jain.

Incidentally, Snowman Logistics, a subsidiary of listed company Gateway Distriparks Ltd, is also looking to raise funds through the IPO route.

The demand for cold chain logistics is driven by pharmaceutical and life-sciences, organised retail, agri-food and dairy sectors.

Players in the cold chain segment invest in refrigerated, temperature-controlled vehicles and temperature-controlled warehouses.

>mamuni.das@thehindu.co.in

Published on August 03, 2013
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