VCCircle

Logistics firm Gateway Distriparks is looking at raising private equity for its railway freight subsidiary - Gateway Rail Freight Pvt Ltd. The company is expected to close the deal in the next two months, a top executive of the firm told CNBC TV18 this afternoon. The company will look at diluting about 15-20 per cent to a private equity investor. The executive also told the channel that the rail freight business may clock revenues of Rs 100-120 crore in 2008-09.
This will be the second private equity investment in a rail cargo company. Early this month, Mumbai-based Sage Capital picked up 8 per cent in Innovative B2B Logistics Solutions reportedly for Rs 25 crore.
Gateway Rail Freight is an unlisted company. The group may look at listing this entity over a period of time. Gateway Distriparks is a publicly listed logistic firm. It's a joint venture between NTSC, Parameshwara Holdings Ltd, Windmill International and Thakral Corporation, and provides services such as warehousing, container freight stations, providing handling and clearance of shipping containers. The company received approval from Indian Railways for running bulk trains railway in 2005.
It operates container freight stations (CFS) at Navi Mumbai, Chennai, Vishakapatnam and Inland Container Depot at Garhi Harsaru, Gurgaon. In November last year, the firm acquired 50.1 per cent stake in cold chain logistics firm Snowman Frozen Food Ltd for Rs 48.12 crore.