Kuehne+Nagel (K+N), a Switzerland-based logistics major with significant operations in India, has acquired the business and assets of RR Enterprises, a New Delhi-based cold chain logistics business. Sources close to the development told VCCircle, the deal amount is somewhere close to Rs 15-Rs 20 crore.
RRE, founded by first generation entrepreneur Kapil Bhatia, is in the business of transportation of goods by road in refrigerated trucks. It has 50 refrigerated trucks and four refer containers, clients and pan-India operations. The acquisition of the assets of RRE is in line with K+N’s inorganic growth strategy and will mark its foray into the fast growing cold chain logistics industry in India.
Cold chain is a logistic system that provides a series of facilities for maintaining ideal storage conditions for perishables from the point of origin to the point of consumption in the food supply chain. The chain needs to start at the farm level (e.g. harvest methods, pre-cooling) and cover up to the consumer level or at least to the retail level.The total cold chain market in India is estimated at $475 million.
K+N provides end?to?end supply chain management capabilities including sea freight, air freight, rail, road, contract logistics and lead logistics. It also offers such solutions as emergency and relief logistics, fairs and exhibitions, as well as hotel logistics. Kuehne & Nagel International provides its services to the technology, retail, FMCG, pharma, healthcare, chemical, aviation and automotive industries.
Some of the recent deals in logistics space include Coffee Day arm buying Sical Logistics for $35.38 million, Aqua Logistics buying Star Distribution Logistics Pvt Ltd for $2 million and Hitachi Transport System Ltd buying Flyjac Transport Logistics System for $56.1 million.
Maple Capital Advisors were the sole advisors for the deal.