Tano Capital To Invest In Kalpataru Power Subsidiary

Private equity firm Tano Capital is investing in Shree Shubham Logistics Ltd (SSLL), a group company of Kalpataru Power Transmission Ltd, at least two people with direct knowledge of the development told VCCircle. While the investment amount could not be immediately ascertained, it is believed that the PE firm is putting up to $15 million into the company.

An e-mail query sent to Hetal Gandhi, managing director of Tano India Advisors Ltd, did not elicit any response till the time of writing this article. A spokesperson of Kalpataru Power did not comment officially till the time of writing this article.

SSLL was set up in January 2007 to provide end-to-end logistics solutions to commodity stakeholders in the agricultural and non-agricultural segments. The company is currently engaged in developing commodity warehousing parks across 12 locations. It has also unveiled its phase II expansion plan for Madhya Pradesh, Maharashtra and Rajasthan, and is creating additional storage capacity of around 3.60 lakh metric tonnes, with an investment of around Rs 250 crore.

The logistics company will use the funds to expand its operations in Bihar, Andhra Pradesh, Delhi, Punjab, Haryana and Uttar Pradesh, and create an additional storage capacity of around 4 lakh metric tonnes.

The company has also tied up with Rajasthan State Warehousing Corporation (RSWC), National Commodity & Derivatives Exchange (NCDEX) and NCDEX Spot Exchange (NSPOT) and banks like Axis Bank, ICICI and HDFC for expansion plans. Most recently, it has signed agreements with Oriental Bank of Commerce, Yes Bank & Punjab National Bank to provide post-harvest credit facilities to farmers, traders and other market participants.

Earlier this year, Tano Capital raised $111.3 million for the final close of Tano India Private Equity Fund II. Recently, it also reinvested in Shilpa Medicare to acquire 1.5 per cent stake for around Rs 8 crore ($1.5 million). The PE firm had invested around $2 million in Shilpa Medicare in early 2006 from its Fund I.

Tano also co-invested Rs 100 crore, along with TVS Capital and Wolfensohn Capital Partners, to buy 3.72 per cent stake in Development Credit Bank.

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