Global port operator DP World Thursday said its joint venture with the National Investment and Infrastructure Fund (NIIF) HIPL has acquired 76 stake in KRIBCHO Infrastructure Ltd (KRIL).
Hindustan Infralog Pvt Ltd (HIPL) is a joint venture between DP World and NIIF.
HIPL has acquired KRIL through its subsidiary Continental Warehousing Corporation (Nhava Seva) in which it holds 90 per cent stake.
The company, however, did not disclose the financial details of the deal.
KRIL is an integrated multi-modal logistics operator.
“With the acquisition of KRIL, DP World will emerge as one of the leading integrated rail terminal and container train operators in India with an enhanced network to provide door-to-door connectivity to cargo owners,” DP World said in a statement.
It will also augment DP World’s existing business in terms of the business model and geographic footprint, offering an integrated portfolio to the entire logistics value chain, it added.
“KRIBCHO (KrishakBharati Cooperative Society) Limited, will continue to retain the remaining 24 per cent shareholding, the statement said, adding the purchase consideration is below one per cent of DP World’s net asset value as of FY 2018.
KRIL was founded in 2009 and operates three major Inland Container Depots/Private Freight Terminals at Pali, Haryana; Modinagar, Uttar Pradesh and Hazira, Gujarat, and has container train operations with a pan India outreach.
“We are delighted to announce the acquisition of KRIL, a rail logistics solutions provider, which is highly complementary to our earlier acquisition of Continental Warehousing Corporation. It enables the DP World Group to become a significant operator in the fast-growing inland logistics market,” said Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World.
In India, DP World has made strong progress in building an integrated logistics platform which can deliver a competitive solution to cargo owners and aims to continue adding scale to its offering to deliver greater efficiencies and value to the trade, he added.
“KRIBCHO continues to remain excited about the significant growth potential of logistics infrastructure in India. We believe the strategic partnership with Continental Warehousing Corporation will enable KRIL’s assets to improve efficiencies, offer a compelling value-add solution to customers and deliver long-term value for all stakeholders,” said Chandra Pal Singh, Chairman, KRIBHCO.
DP World is a global port operator with a portfolio of 78 operating marine and inland terminals supported by over 50 related businesses in over 40 countries across six continents.
Source: Economic Times