Warburg Pincus, a global private equity firm, is investing $100 million in Chennai based logistics firm, Continental Warehousing Corporation (Nhava Seva) Ltd (CWCNSL), a subsidiary of NDR Group. Certain existing minority investors will also divest part of their ownership stake to Warburg Pincus as part of this transaction.
The NDR Group currently has one of the largest warehousing networks in the private sector in the country, encompassing 6.5 million sq. ft. of storage area in 70 strategic locations.
The investment by Warburg Pincus will be used to fund the expansion and to strengthen CWCNSL’s position as an end-to-end logistics solutions provider by developing rail-linked inland container depots at various locations across the country.
Since its inception in 1954, NDR has evolved into a diversified logistics company, with activities spanning container freight stations, inland container depots, port operations, warehousing, third party logistics (3PL), transportation and express cargo.
Vishal Mahadevia, Managing Director, Warburg Pincus India Pvt Ltd, said, “The NDR Group has established an integrated national network of logistics and related infrastructure facilities across 50 centres in India and has developed an enviable client base.”
Spark Capital acted as the financial advisor to Warburg Pincus in the deal.
Warburg Pincus, which made its name in the Indian market by striking one of the first multi-bagger investments in Bharti Airtel just before the mobile telephony revolution in the country, had recently exited its five-year-old investment in gems & jewellery exporter Vaibhav Gems with an estimated 92.5 per cent haircut, making it one of the biggest loss-making private equity exits in India.
However, private equity deals in the logistics space continue to heat up and the current one is no exception. India Equity Partners (IEP) invested $10 million in Swastik Roadlines; Ashmore Alchemy Investment Advisors invested $10 million in Siesta Logistics Corp Ltd and Mayfield Fund and Sidbi Venture Capital Ltd invested $11 million in Fourcee Infrastructure Equipment Pvt Ltd, among other investments.