Global private equity firm, Warburg Pincus, is to make an investment of US$100 million in India’s leading logistics company, the NDR Group. The transaction amount will see Warburg Pincus acquire a minority stake in NDR Group’s flagship company, Continental Warehousing Corporation (Nhava Seva) Limited (CWCNSL). Warburg Pincus will undertake the investment through its Indian affiliate.
The Warburg Pincus investment will enable CWCNSL fund the expansion of its businesses and strengthen its position as an end-to-end logistics solutions provider by developing rail-linked inland container depots at various locations across India. Certain existing minority investors will also divest part of their ownership stake to Warburg Pincus as part of this transaction.
Mr. N. Adikesavulu Reddy, Chairman, NDR Group, commented that the NDR Group has grown to be one of the leading end-to-end logistics solutions providers in India, acknowledged for the trustworthy and reliable support it brings to clients. Reddy said NDR is confident the new partnership with Warburg Pincus will help NDR rapidly develop, create and offer the best feasible national network of logistics infrastructure facilities in India.
Mr. N. Amrutesh Reddy, Executive Director, Continental Warehousing Corporation (Nhava Seva Limited) on his part noted that during NDR’s over three decades operations in the logistics related businesses, the firm has established itself as a dominant multi-modal logistics player with a strong pan-India presence.
According to Amrutesh Reddy, Warburg Pincus take NDR to its next phase of dynamic expansion.
NDR has developed a world-class logistics business with a strong pan-India presence. NDR is one of the largest warehouse providers in the Indian private sector, with the distinction of establishing the first private bonded warehouse in India.
Over time NDR has evolved into a diversified logistics company, with activities spanning container freight stations (CFS), inland container depots (ICDs), port operations, warehousing, third party logistics (3PL), transportation, and express cargo. NDR handles container and bulk cargo and provides contract logistics services to a blue chip customer base across 50 locations comprising over 10 million sq. ft. of storage space in India.
Mr. Vishal Mahadevia, Managing Director, Warburg Pincus India Private Limited noted that partnering with talented management teams leading differentiated businesses has been the cornerstone of Warburg Pincus’ investment philosophy.
The NDR Group, a pioneer in the logistics segment, has established an integrated national network of logistics and related infrastructure facilities across 50 centers in India and has developed an enviable client base, he said. Spark Capital acted as the financial advisor to Warburg Pincus for this transaction.
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