ColdEX Logistics eyes up to $81M in fresh PE deal, India Equity Partners to exit

Gwalior-based food cargo supply chain service provider ColdEX Logistics Pvt Ltd is holding discussion with private equity players and strategic investors to garner Rs 300-500 crore (up to $81 million), Mint reported citing the company's managing director Gaurav Jain.

The fundraising, which is expected to be finalised over the next three to six months, would be through a mix of equity and debt and is expected to show an exit route to the existing PE investor India Equity Partners, Jain told the paper. India Equity Partners had put $10 million in ColdEX in December 2010 for a significant minority stake.

The cold chain company would use the fund to be raised to augment its facilities in the country as it is planning to serve the quick service restaurant chain market, he added.

At present, ColdEX has a revenue of Rs 200 crore and is aiming to grow at the rate of 35 per cent. The clientèle of the company includes Burger King, Starbucks and Yum!, which runs KFC and Pizza Hut chains, among others.

Indian logistics and cold chain industry has been attracting investor interest. Last month, Gati Kausar India Ltd, the cold chain arm of Gati Ltd, raised Rs 150 crore ($24.45 million) from funds managed by Mandala Capital.

Gateway Distriparks' unit Snowman Logistics Ltd raised Rs 197 crore by selling 42 million equity shares in an initial public offering (IPO) that was subscribed 60 times.

In other deals, Aspada Investment committed over $2 million to Delhi-based fresh fruit supply chain company Allfresh Supply Management Pvt Ltd after backing Lawrencedale Agroprocessing India, a fresh vegetable supply chain company in 2013; Future Supply Chains, a privately held logistics firm of Kishore Biyani-led Future Group, is acquiring Delhi-based food logistics firm Brattle Foods Pvt Ltd; Temasek invested in Star Agriwarehousing and Collateral Management Limited.

(Edited by Joby Puthuparampil Johnson)

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