Private equity firm Tano Capital is investing Rs 80 crore ($15 million) in Shree Shubham Logistics Ltd (SSLL), a group company of Kalpataru Power Transmission Ltd, for an undisclosed stake, according to a company disclosure.
VCCircle first reported in April 2012 that the PE firm would be investing up to $15 million in SSLL.
Tano also invested in Development Credit Bank and Shilpa Medicare over the past one year.
Inga Capital was the sole advisor to SSLL for this transaction.
“This fund infusion will support our capacity expansion plans in Maharashtra, Rajasthan, Madhya Pradesh and other states of the country,” said Manish Mohnot, director of Kalpataru.
SSLL was set up in January 2007 to provide logistics solutions to commodity sector stakeholders. It provides storage and preservation service with a chain of dry and cold storage units, besides focusing on weighing, testing & certification, fumigation, pest management, commodity procurement and collateral management for commodity financing against warehouse receipts/stocks with the help of banks. The company is currently engaged in developing commodity warehousing parks.
Currently, the firm is operating and managing 90 warehouses (owned and leased) with storage capacity of around 11 lakh tonnes, spanning 6 million sq. ft. area in Rajasthan, Gujarat and Madhya Pradesh. SSLL will expand its capacity to 1.5 million metric tonnes by the end of this year and reach nearly 2 million metric tonnes of capacity over the next 2-3 years with a pan-India presence.
(Edited by Sanghamitra Mandal)