IL&FS Private Equity, through Tara India Fund III, has invested 8.81 million(Rs 40 crore) in Indore-based JICS Logistics Ltd for an undisclosed stake.
JICS Logistics, formerly known as Jhawar Ice and Cold Storage,provides a wide range of services including warehousing, collateral management, commodity funding and export. The company will use the capital to part-fund the expansion of its warehousing capacities across 16 locations, besides increasing its commodity financing books and expanding its assay services facilities. JICS also plans to start collateral management services for banks and financial institutions.
“This partnership would enable us to meet strategic growth objectives, and further strengthen our leadership position in the agri logistics space,” said Anil Jhawar, CMD of JICS.
Safire Capital, an investment bank focused on infrastructure, real estate and structured finance, was the exclusive financial advisors to JICS Logistic for the transaction.
Sunil Diwakar, Managing Partner, IL&FS Investment Managers Ltd would be representing the private equity firm on the board of JICS.
“The commodity warehousing sector is witnessing increasing interest from investors due to significant scope for expanding warehousing infrastructure, growth in organised retail and commodity exchanges, as well as entry of global commodity trading firms in India. The partnership with IL&FS would enable JICS to move into a higher growth trajectory and create substantial value for all stakeholders,” said Albert da Costa, director of Safire Capital.
Tara India Fund III is a $225 million private equity fund that focuses on growth opportunities including expansion, restructuring, buyout and acquisition. The fund seeks to invest in infrastructure, consumer services, manufacturing, IT, pharmaceutical and healthcare space. It typically invests between $8 million and $30 million in its portfolio companies.
Last year, the fund invested $16.2 million in Bangalore-based aruturi Global Ltd, a floriculture retailing company.