D P World-NIIF team buys 76 per cent in KRIBHCO Infrastructure Ltd

P Manoj Mumbai | Updated on May 23, 2019

HIPL acquired 76 per cent stake in KRIL   -  Prashant Nakwe

Deal boosts its presence in the inland logistics market


Hindustan Infralog Private Limited (HIPL), a joint venture between Dubai-based port giant DP World Ltd and India’s National Investment and Infrastructure Fund (NIIF), has acquired a 76 per cent stake in KRIBCHO Infrastructure Limited (KRIL), an integrated multi-modal logistics operator in India.

The size of the deal is less than one per cent of DP World’s net asset value as of FY2018, D P World said on Thursday without divulging the acquisition price.

BusinessLine was the first to report the deal in its April 3 edition and sources briefed on the deal said it was close to Rs 1,000 crore.

Kribhco Infrastructure Limited is a fully owned rail logistics unit of fertiliser making cooperative society Krishak Bharti Cooperative Limited (KRIBHCO).

The acquisition bolsters D P World’s presence in the fast-growing inland logistics market by making it one of the top integrated rail terminal and container train operators in the country, providing door-to-door connectivity to cargo owners.

The KRIL acquisition will be the third by Hindustan Infralog, the JV set up by DP World and NIIF to invest as much as US$ 3 billion to acquire assets and develop projects in ports, terminals, logistics, transportation and related sectors.

The JV acquired multi-modal logistics firm Continental Warehousing Corporation (Nhava Seva) Ltd (CWCNSL) in March 2018, helping the Dubai government-owned firm enter related logistics segments complementing its core business and boost volumes.

In October 2018, the D P World-NIIF JV won a tender to develop and operate a Free Trade Warehousing Zone (FTWZ) on 18 hectares at India’s largest container gateway – Jawaharlal Nehru Port Trust (JNPT)- for $78 million.

D P World, the largest listed global port operator, has invested $1.2 billion in India since 1997 and is currently the only foreign port operator running six terminals at Mundra, Jawaharlal Nehru Port Trust, Chennai, Cochin and Vizag with a combined capacity of over 6 million TEUs accounting for a market share of about 30 per cent of India’s annual container volumes shipped through its ports.

D P World said it acquired KRIL through Continental Warehousing Corporation (Nhava Sheva).

KRIBCHO will continue to retain the remaining 24 per cent stake in KRIL.

KRIL runs three major Inland Container Depots/Private Freight Terminals at Pali in Haryana, Modinagar in Uttar Pradesh and Hazira in Gujarat. It also has a license from the Indian Railways to run container trains pan India.

KRIL has a strong presence in the National Capital Region (NCR), which is India’s largest import/export market with a population of over 46 million, including a terminal located on a notified double stack route.

With the acquisition of KRIL, DP World will emerge as one of the leading integrated rail terminal and container train operators in India with an enhanced network to provide door-to-door connectivity to cargo owners. It will also augment DP World’s existing business in terms of the business model and geographic footprint, offering an integrated portfolio to the entire logistics value chain, the company said.

Sultan Ahmed Bin Sulayem, Group Chairman and Chief Executive Officer (CEO), DP World, said, “The acquisition of KRIL, a rail logistics solutions provider, is highly complementary to our earlier acquisition of Continental Warehousing Corporation. It enables the DP World Group to become a significant operator in the fast-growing inland logistics market.

Chandra Pal Singh, Chairman, KRIBHCO, said, “We believe the strategic partnership with Continental Warehousing Corporation will enable KRIL’s assets to improve efficiencies, offer a compelling value-add solution to customers and deliver long-term value for all stakeholders”

Published on May 23, 2019

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