facebook-page-view
Advertisement

IFC to invest $60M in Continental Warehousing

By Anuradha Verma

  • 02 Dec 2015
IFC to invest $60M in Continental Warehousing

International Finance Corporation (IFC), the private sector lending arm of the World Bank, will invest $60 million in Mumbai-based logistics company Continental Warehousing Nhava Sheva Ltd, according to a disclosure.

IFC's investment in Continental Warehousing Nhava, which is backed by private equity firm Warburg Pincus, will consist of $25 million in equity and $35 million in debt.

The total project cost is estimated to be $90 million.

Advertisement

Continental Warehousing, the flagship company of Chennai-based NDR Group, owns and operates cargo handling facilities such as container freight stations and inland container depots, and provides express cargo and third-party logistics services.

“Increased freight movement on railways is a key initiative for the new government as it will improve logistics activities in the country and boost economic growth. This investment will help fund multi-modal cargo handling facilities that will handle both domestic and exim cargo,” IFC said in the disclosure.

Continental Warehousing is looking to expand its network of operating assets by adding MMT cargo handling facilities at two locations in India. It will add nine express logistics centres with 1.5 million square feet of rack space at key locations across India over two years at a cost of $90 million to strengthen its distribution capabilities.

Advertisement

After implementation of the project, Continental Warehousing will have a network of four container freight stations (CFS) and five MMT facilities with distribution capabilities across key locations in the country.

Warburg Pincus had invested $100 million in the company in 2011 and owns about 44.7 per cent equity stake. On the other side, the firm had previously raised $16 million from Aureos Capital and ePlanet Ventures.

Advertisement

Share article on

Advertisement
Advertisement