Aqua Logistics Ltd is to buy 70 per cent stake in Bangalore-based Nikkos Logistics Pvt Ltd. Nikkos Logistics offers diversified logistics services including supply chain management service, reported Deal Curry.
Aqua Logistics provides services such as transportation, warehousing and re-distribution of cargo. The Company is promoted by Rajesh Uchil, MS Sayad, Harish Uchil and Gopalkrishna Uchil. This will be Aqua’s fifth acquisition since 2010.
Aqua is also looking for acquisitions in Indonesia and Vietnam. Last year, it raised Rs.150 Crore through IPO by diluting 32-33 per cent of the stake valuing the company at around Rs 450 Crore (around $97 million). Neither of its earlier investor including Enam Shares & Securities, Carwin Mercantiles and Shubkham Ventures has exited during IPO.
In 2010, Japan’s Hitachi Ltd’s unit Hitachi Transport System Ltd acquired Flyjac Logistics Pvt Ltd, for Rs.250 Cr; Andhra Pradesh-based Transport Corporation of India (TCI) acquired 51% in a JV Company, Infinite Logistics Solutions Pvt Ltd; Reliance Industries acquired minority stake in Deccan Cargo & Express; while Nippon Yusen Kaisha bought 26% stake in Tata Steel’s subsidiary TM International Logistics Limited.
Established in 1999 and headquartered in Mumbai, Aqua Logistics is India’s foremost global logistics and supply chain partner, delivering excellence across industries, through an integration of empowered people, processes and technology.
The firm has an extensive international network that offers seamless movement of cargo from point of origin to its final destination and supports Aqua Logistics Global Logistics Management services. Aqua Logistics has incorporated supply chain consulting and outsourcing work for various verticals including Power, Pharmaceuticals, Engineering, Infrastructure, Sports, Events, Retail, Telecom and the Consumer Durables industry.
According to the Wall Street Journal, the deal signals the consolidation phase of Indian logistics, for which several private equity players and large companies have started buying small logistics companies that have specialized services. Additional deals are in the pipeline, said the WSJ.
The structure of the deal will be finalized in a week, said Mohammad Sabir Sayad, Aqua Logistics’ vice-chairman and whole-time director. He declined to divulge details of the purchase, indicated the WSJ.
Aqua Logistics will infuse capital in Nikkos Logistics in phases to expand the business. In addition, the company, which has 349.2 million rupees ($7.85 million) cash as of September 30, 2010, is looking at buying companies in Indonesia and Vietnam for $70 million soon.
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