PE & VC put US$16 million in Indian logistics firm
The Aureos India Fund and ePlanet Ventures have invested US$16 million in Indian container logistics and warehouse management services company Continental Warehousing Corporation (Nhava Seva) Ltd (CWCNSL), part of the NDR Group.
The Aureos India Fund, an initiative of Aureos Capital, a private equity fund management company specialising in investing in small to mid-sized businesses in emerging markets, has invested US$10 million in CWCNSL. ePlanet Ventures, a leading global venture capital and private equity firm headquartered in Silicon Valley, has invested US$6 million.
CWCNSL commenced its operations in the year 2005 and in the last year reported consolidated revenues of Rs.1.5 billion (US$ 31.5 million). The company manages container freight stations across India in Jawaharlal Nehru Port Trust, Chennai, Tuticorin and Indore, with a total annual capacity of 170,000 twenty-foot equivalent units, or standard containers.
In addition CWCNSL also offers warehouse management solutions to leading retailers, telecom service providers and consumer durables industries through its wholly owned subsidiary Kaveri Warehousing Private Limited. The company also provides 3PL services to many of the leading fertilizer and cement companies.
CWCNSL intends to use this investment to increase the number of Container Freight Stations it operates and to extend its warehouse management solutions business to offer a “Port to store” services including extensive transportation and cargo services
Balaji Srinivas, Aureos Managing Partner for India, comments: “The rapid growth of the organised Indian retail sector means that there is now a growing demand for logistics services that can get goods from port to the shelves quickly and securely.” As part of the investment Balaji Srinivas of Aureos and Chandrasekar Kandasamy of ePlanet will join CWCNSL’s Board of Directors.