Gati Ltd, part of Allcargo Group, will exit its cold chain business by selling its entire 70% stake to existing shareholder Mandala Capital AG Ltd for an undisclosed amount.
Mandala, which currently holds a 30% stake in Gati Kausar India Ltd, is a private equity firm focused on investments across the food value chain. Mandala has been a shareholder in Gati Kausar since 2014.
The deal is expected to close within 30 days and it will help Gati cut its consolidated gross debt by around ₹100 crore, the company said in a statement. The deal would also help the firm more than halve its consolidated gross debt within a year, it said.
Gati said that since coming under the Allcargo fold last year, it has been on a continuous transformation journey to focus on an asset-light, high-return on equity businesses.
The company has either sold or closed four non-core businesses in the past year to focus entirely on express distribution and e-commerce businesses, and regain market leadership.
Gati Kausar provides temperature-controlled transport services to healthcare, meat, bio-pharma, dairy products, organized retail and quick-service restaurant businesses with a fleet of 200 refrigerated vehicles.
