South-East Asia-focussed private equity firm New Silk Route (NSR) has invested about Rs 206 crore ($40 million) in VRL Logistics last month.

While the fresh funds are likely to be used in expanding the Hubli-based transport firm's vehicle strength and repay debts, it will also lead to a delay in its plans to hit the capital markets with an initial public offering. VRL had filed a DRHP in December last year.

This is the second recent investment by the $1.4-billion fund, which looks at growth capital. Recently, it also picked up a majority 51 per cent stake in Bangalore-based South Indian food chain, Adiga. NSR will now take control of the business, though Adiga's promoter family will actively help in running it.

“We have already committed about $800 million from the fund, and will likely to raise another fresh fund by the next year of about the same size. Our investments are now in about 16 firms, of which only 2-3 are outside India,” Mr Darius Pandole, Partner, NSR Advisors, said.

The PE fund is primarily focussing on the consumer sectors, apart from infrastructure, where the investment size is typically about $40 million. Reports have indicated that NSR has set aside about Rs 500 crore to invest in food and beverage funds, where the PE fund can take a controlling stake. NSR already has investments in Café Coffee Day, apart from firms such as 9X Media, Aster Pvt. Ltd and Reliance Infratel.

“We generally look at firms where we can take a controlling stake and be involved in the operations,” Mr Pandole added.

>roudra.b@thehindu.co.in

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