Private Equity fund New Silk Route or NSR, which manages $1.4 billion private equity funds focused in Asia and the Indian subcontinent, on Thursday said it invested Rs 175 crore in the Hubli-based logistics company VRL Logistics Ltd, which owns 3000 trucks and 400 buses.
VRL will utilise Rs 125 crore to expand its business, while its promoters will get the balance amount of Rs 50 crore for selling their stake to NSR, both the companies said.ithout disclosing the stake.
“We believe that the infrastructure and logistics segment in India will grow exponentially in the next couple of years and this partnership helps us to further strengthen our infrastructure portfolio,” said Darius Pandole, partner at NSR., who will also join VRL’s board as a director.”We see a tremendous potential for growth and have complete faith in VRL’s differentiated operating model.”
This is VRL’s first capital infusion in the last 35 years of its operations. SMC Capitals advised the company on this transaction.
“We were in talks with other private equity firms as well, however, we chose to partner with New Silk Route as it brought strong industry expertise with experienced partners who have led other companies in this sector,” said Vijay Sankeshwar, chairman and managing director, VRL Logistics.
“The investment is not only about raising capital, which would help us meet our growth needs, but also build the foundation of a lasting partnership.”
NSR has been in India since 2006 and has invested in consumption driven sectors such as healthcare, education, retail and infrastructure. Its portfolio of 14 companies include 9X Media, Ascend Telecom, Destimoney and Nectar Lifesciences.
VRL Logistics, which reported Rs 893 sales in fiscal 2012, also operates a fllet of planes to charter passengers, owns windmills which can generate 42.50 MW.
Source: Financial Express