(MENAFN- Emirates News Agency (WAM))
DUBAI, 18th March, 2018 (WAM) -- Hindustan Infralog Private Limited (HIPL), a joint venture between DP World and the National Investment and Infrastructure Fund (NIIF), has announced the acquisition of a 90% stake in Continental Warehousing Corporation (Nhava Seva) Ltd (CWCNSL), an integrated multimodal logistics player in India.
CWCNSL's founders, the Reddy family, will retain the remaining 10% shareholding and will remain involved in the business operations. The purchase consideration is below 5% of DP World's net asset value as of FY20171 and it is the first investment of HIPL, the recently created investment vehicle between DP World and NIIF to invest up to US$ 3 billion in ports, logistics and related sectors.
In India, DP World has been operating container port terminals since 1997 and was instrumental in building the first Private-Public Partnership (PPP) project for the Government of India. DP World is currently present at six locations in India with over 6 million TEU of gross capacity and also operates container trains connecting ports to the hinterland.
Commenting on the announcement, Sultan Ahmed bin Sulayem, Group Chairman and CEO, DP World, said, "We are delighted to start our recent partnership with NIIF with this strategic acquisition to develop logistics and warehousing solutions to support India's growing economy and trade.
"As a global trade enabler, we aim to grow in complementary sectors of the global supply chain, which includes inland container terminals, freight corridors and logistics infrastructure. The acquisition of Continental Warehousing Corporation provides us with a scalable platform to accelerate growth in the rapidly evolving logistics sector 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."
Adi Keshav Reddy, Founder, CWCNSL, said, "The strategic partnership with Hindustan Infralog and its parent DP World will have huge potential for logistics infrastructure in India and will enable CWCNSL to enhance its end-to-end value-added services to customers. We have enjoyed a successful partnership with Warburg Pincus, IFC and Aureos, and look forward to partnering with Hindustan Infralog for the next phase of the Company's growth."
CWCNSL was founded in 1997 and is a leading integrated multimodal logistics provider of Warehousing, Container Freight Stations (CFS), Inland Container Depots (ICD), Private Freight Terminals (PFT) and integrated logistics solutions. CWCNSL's logistics network is spread across key strategic locations in India covering a total area of over 400 acres and providing over 660k TEU (twenty-foot equivalent units) capacity. In addition, CWCNSL's wholly owned subsidiary Delex Cargo India Private Ltd provides door-to-door logistics solutions including freight forwarding, 3rd party logistics, express logistics and hub-and-spoke model of delivery across 54 locations in 40 cities.
WAM/Esraa Ismail/Rasha Abubaker
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