Redington (India) Ltd, a distributor of technology and electronics products including Apple iPhones, has acquired a 90% stake in Auroma Logistics Pvt. Ltd to expand its supply chain network for the consumer durable segment.
The Chennai-based company said in a stock-exchange filing it paid Rs 45.67 crore ($6.5 million) for the stake in Auroma and that it will acquire the remaining 10% after three years as per a pre-agreed formula.
Redington, which counts Standard Chartered Private Equity as an investor, made the acquisition through unit ProConnect Supply Chain Solutions Ltd.
Kolkata-based Auroma, which was launched in 2009, offers warehousing and logistics services mainly for the consumer durables segment. It reported revenue of Rs 60 crore for 2017-18 as against Rs 54 crore the year before.
Redington, founded in 1961 as G Kewalram Pvt. Ltd, forayed into the distribution of IT products in the 1990s. The company then augmented its footprint into the distribution of telecom products to tap into the increasing demand for mobile handsets. It is one of the largest resellers of Apple iPhones.
The company posted net sales of Rs 1,526 crore for 2017-18 as against Rs 1,543 crore the year before.
Redington’s acquisition of Auroma adds to the growing number of transactions in the logistics sector, particularly the technology-enabled logistics category. The sector has recorded a spate of deals in the recent past.
For instance, SoftBank Vision Fund and private equity firm Carlyle recently invested in logistics company Delhivery. Logistics-technology firm Rivigo Services Pvt. Ltd raised $35.6 million in a fresh round of funding from existing investors Warburg Pincus and SAIF Partners in February this year.
Rivigo's competitor Blackbuck raised Rs 87.02 crore ($12.43 million) from existing investors in December, just two months after securing Rs 202.96 crore ($27.4 million) in a round led by new investor Sequoia Capital.