Consumer focused private equity investor Mandala Capital will buy the rest of a cold chain transport services firm from express courier services company Gati Ltd which is a part of logistics player Allcargo Group.
The private equity firm had acquired 30% of Gati Kausar India Ltd in 2014 for Rs 150 crore.
The parent said the cold chain subsidiary has mounting liabilities.
Gati Kausar reported loss of around Rs 16.5 crore in 2020-21 and has accumulated losses amounting to Rs 108.9 crore. This has resulted in complete erosion of its net worth and the current liabilities exceed current assets by Rs 95.8 crore, the parent said.
Gati Kausar provides cold chain transport services to companies in healthcare, meat & poultry, bio-pharma, frozen & fresh produce, dairy products, organised retail and quick service restaurants, according to its website.
It adopted an asset-light model in 2018 and is currently undergoing a restructuring plan to ensure solvency, the company said.
The company is also availing an extension for repayment of some of its long-term debts till September 30, 2021.
“This indicates that there exists material uncertainty that may cast significant doubt on the entity’s ability to continue as a going concern and therefore, the firm may be unable to realise its assets and discharge its liabilities in the normal course of business,” the company said.
Gati Ltd, which has five other subsidiaries, said it has identified other non-core assets for monetisation.
Gati Ltd earned Rs 59 crore in 2020-21 from the sale of non-core assets and the proceeds were used to discharge debt and other liabilities of the group, it said.