BW logi<tic< ~ctor Attract<! "

c J D WWW,b U5ine55worl d.in/ artide/Logistics-Sector -Attracts-Investor -Inlerestj17 -11-2015-88009/

BW BUSINESSWORLO

HOME EXCLUSIVE· COWMNS • COMMUNITlES EVENT. BW TV • SUBSCRIBE

• Indian Economy • Startup St"'V • Bollywood Business • After Office

Logistics Sector Attracts Investor Interest

De Goa Boutique Resort . 3,555 Flat 60% Off on Hotels

IJnn't wdnt to ",<><1 t h" lull drt IC I", l lick hpr<' 1m t hi' GI~ T

17 NoV<'mbi'r,201S ~

A IaHal Resi<leocy

= BOO K NOW

.. ---::, Estre la Do """ r Beac h Resort _ A Beach Propeny

gOObo.com

.= BOO K NOW

Gem Pa rk

6,483 BOO K NOW

B Print th is artic le

11 Font size 16

With rood productIOn growing, India needs more storage and transportatIOn capacity, writes Parami!a Cha!!eljee

Fortigo, an early stage logistics venture that aims to solve the logistics and transportation problems lor small and medium businesses, was recently in news lor rts prospective investment by Inlosys co-Iounder Nandan Nilekani and venture firm Accel Partners

Homegrown company in the Indian agri-warehousing sector Sohan Lal Commodity Management. recently raised rts lourth round ollunding - about Rs 1 ()() crore - lrom private equity lirm Creation and existing investor, Everstone Caprtal.

These are not the only ones There is a burgeoning list 01 companies - both startups and established companies in the logistics space - that are increasingly attracting investor interest as the importance 01 augmenting India's storage capabilrties gets crrtical

Currently, there is a paucity 01 warehouses in India. especially in the agricuRure sector. In lact with the increase ollood production in the country. the marketable surplus 01 agricuRural produce exceeds India's storage capacity

For inslance, ~ the country had approximately 159 million metric tonnes ollood grains as marketable surplus in 2013-14. rt is yetto have the combined storage capacity to handle the addrtional quantity. 1\ is this wide gap that is giving rise to a business opportunity which in turn is prompting risk caprtal investors such as private equity and venture caprtallunds to invest in the sector

Whats more. while established companies in the agri-Iogistics and cold chain industry are receiving lunding lrom investors to expand their business, even those who locus on providing back-end support in the ecommerce rush are increasingly evincing investor interest. Recently, Peepul Caprtal made over six-Iold a return on rts investment that rt had made in logistics lirm Ecom Express

Corporate lav.yers on condrtion 01 anonymity reveal there are qurte a lew private equity deals that are in advanced stages 01 discussion in the logistics space. For instance. ColdEX Logistics, a cold chain company that provides support and distribution services to well-known international brands including Burger King Subway, Domino's Pizza and Starbucks, is currently in talks with a host 01 private equity investors to raise about $80 millIOn. In December 2010 rt had raised $10 millIOn lrom India Equity Partners In lieu 01 a signifICant minority stake Investments indeed have started picking up in this sector Starting 2012, private equity investors have inlused around $275 million in the sector. as per data available with research lirm Venture Intelligence

Recently . Canadian investment giant Fair/ax invested $126 million in National Collateral Management Services LId. a private -sector agricuRural commodrties storage company headquartered in Gurgaon

Other prominent deals in the sector include Temasek's $40 million investment in Star Agriwarehousing and Collateral Management. a post-harvest solutions company locused on empowering larmers and Mandala Caprtal Fund 's $25 million lunding in logistics firm Gati Kausar. The company, which has a network 01 cold warehouses, transports relrigerated goods across sectors including heanhcare meat. pouRry, and bio­pharma. among others

ShaA! this article:

Related Articles

Infosys Cofoond"r Nandan Nilekani To Invest In Truck Fleet Management StiutU\l

,)-. .. - - -

Subllash Bedi of Red Fort CapitallaurKhes Rising Straits Capital

Russian Billionaire's Firm Among New Ola Financiers

BWNetwork

We Are Transforming to the Digital Speed: CIO, Safe.press

BWCIO

How Reliance Money's (TO got Internal, External Users on Mobility

BWCIO

We Are Transforming to the Oigital Speed: CIO, Safe. press

BW HOTELIER

How Reliance Money's (TO got Internal, External Users on Mobility

BW HOTELIER

We Are Transforming to the Digital Speed: CIO, Safe.press

BW SMARTCITIES

How Reliance Money's (TO got Internal, E.ternal Users on Mobility

BW SMARTCITIES

• Article

FIND OUT HOW >

Quick Byle

Sponsored

TOfegister, mail us at urvija.ghurye@aonhewitt.com

Socialize

Get Soc iai' Fo llow u, on your faV<lurite

""'ia l networking website

~ FacetJook

C Twitter

C YOUTUbe

~RSS

Quick BVtes

. ' c"\.. ;;'l1li-- ,.

---. '01

. 1i<lO'1

5 Things to Know About Anonymous, the Group That Has Declared War Against

'S ., read more

5 Seuets to Build A Sunessful E­commerce Business

., read more

5 Ways Startups Can Get The Attention Df Inves tors

., read more

5 Steps To Save For Child Education Nei!ds

., read more

5 Haunted Hotels To Book Your Next Stay

'0 ., read more

Th ings Every Person Travelling To India Should Know

., read more

BWTV 'Wow""""

BWITV: Top News Of The Week

•

-