Indian logistics-focused private equity fund Tuscan Ventures has exited its around seven-year old investment in Mumbai-based LCL Logistix Pvt. Ltd by selling its entire 15 per cent stake to French shipping conglomerate CMA CGM Group’s logistic arm for an undisclosed amount, it said on Wednesday.
Tuscan Ventures had invested around $5 million in various tranches between 2007-08 in the freight forwarding company, and has now divested its entire 15 per cent stake holding in the company to CMA CGM Logistics.
“For Tuscan this is a vindication of its strategy in the India logistics opportunity, where you can build and scale a platform through adverse shipping cycles and slowdowns,” said Shagun Kapu Gogia, founder of Tuscan Ventures.
The PE fun also counts Cold Star Logistics among its portfolio firms, according to VCCEdge, the financial research platform of VCCircle.
LCL Logistix will provide impetus to CMA CGM Logistics in India and will benefit from CMA CGM’s, Unni Nair, chairman of LCL Logistix, said.
With annual revenues of $120 million in the financial year ended March 31, 2014, Mumbai-based LCL Logistix operates throughout India, and has a 42 office network in India and abroad. The company has invested in own assets-led business services such as Container Freight Stations (CFS), trucks, equipment’s and warehouses.
Meanwhile, CMA CGM said that the deal would strengthen its position in India and it will leverage LCL Logistix’s Indian network and its presence in North America and in East Africa to accelerate its growth.
The French company offers logistics solutions in 32 countries, including air freight, multi-modal transport, custom clearance, warehousing and distribution amongst others.