CDC Group Plc, the UK’s development finance institution, has acquired a minority stake in TVS Industrial and Logistics Parks Pvt. Ltd, a joint venture between TVS Supply Chain Solutions Ltd and Ravi Swaminathan Associates.
This is the first time that TVS Industrial has raised institutional investment. This is also CDC’s first investment in a company that builds logistics parks, the firms said in a statement.
“To propel the company to the next level of growth, we feel bringing in a strategic investment partner is the ideal next step,” R. Dinesh, director at TVS Industrial.
Ravi Swaminathan, director at TVS Industrial, said the company decided to focus on scale and size now after having spent the past 15 years acquiring knowledge and capability.
CDC Group said TVS Industrial was providing investment-grade warehouses in underserved markets which was facilitating trade and transport with efficient logistic facilities.
“This type of business-enabling infrastructure plays a vital role in economic development by connecting regions, enabling economies of scale, and reducing the cost of goods for consumers,” said Srini Nagarajan, managing director and head of Asia at CDC. “Our investment will create 3,000 construction jobs and support the creation of a further 500 jobs during warehouse operations.”
The warehousing will also minimise greenhouse gas emissions and support climate change mitigation, he added.
The firms didn’t disclose financial details of CDC’s investments. However, media reports said that CDC was picking up a 40% stake in TVS Industrial for anywhere between Rs 250 crore and Rs 400 crore.
CDC has been steadily increasing its direct investments in India, VCCircle reported earlier this year.
The development financier makes investments that help alleviate climate change, create jobs and have a measurable environmental and social impact. Earlier this week, CDC made an additional investment in Ayana Renewable Power, a green energy platform it had set up for India in 2018. The new investment round was led by India’s National Investment and Infrastructure Fund.
Last month, VCCircle reported that CDC and a private equity firm had set up a pharmaceuticals platform that acquired a Sequoia Capital-backed Indian drugmaker. The pan-Africa pharmaceutical platform acquired India’s Celon Laboratories Pvt. Ltd and merged it with Egyptian generics drugs maker Adwia Pharmaceuticals.