DP World’s India Joint Venture Buys 90% Stake In Logistics Firm
DP World’s joint venture with NIIF makes its first acquisition.
Hindustan Infralog Private Ltd., the joint venture between India’s infrastructure fund and port operator DP World bought 90 percent stake for an undisclosed amount in Continental Warehousing Corporation (Nhava Seva) Ltd.
Founders of the Mumbai-based logistics firm will retain 10 percent stake, according to a statement by Dubai-based DP World. It didn’t give the financial details. Continental Warehousing is a multi-modal logistics provider spread across 40 cities.
DP World has been operating port terminals in India since 1997. The acquisition, its statement said, will enhance its logistics value in India. “We look forward to actively collaborating with the Reddy family, our partners in Continental Warehousing Corporation, to drive and realise the Company’s growth,” it quoted Sultan Ahmed Bin Sulayem, group chairman and chief executive officer, as saying.
Adi Keshav Reddy, founder at Continental Warehousing, said in the statement that the company has enjoyed a successful partnership with Warburg Pincus, IFC and Aureos, and looks forward to partnering with Hindustan Infralog for the next phase of growth.
This is the first acquisition by the joint venture between the National Investment and Infrastructure Fund and DP World. The partnership is aimed at creating an investment platform for ports and logistics business in India, the Ministry of Finance had said in a January statement.
NIIF is a fund manager that seeks to create long-term value for domestic and international investors in energy, transportation, housing, water, waste management and other infrastructure-related sectors. It’s jointly owned by the government and investors from India and abroad.
DP World had announced in May 2017 that was looking at opportunities worth over $1 billion over the next few years in India. This will be aimed at development of port infrastructure under the Sagarmala project, creation of the Delhi-Mumbai Industrial Corridor, river transportation and cold chain storage, and investing in port-led special economic zones, free-trade zones, inland container depot and cruise terminals.