Mumbai-based logistics firm J M Baxi Group is in talks to raise nearly $160 million (Rs 1000-1200 crore) from Piramal Structured Finance Group, said two people directly familiar with the matter.
In an emailed response the company said, it is in “talks for raising funds from Piramal group for its growth plans.” Piramal SFG is yet to respond to ET NOW query.
“The company has received a term sheet from Piramal SFG earlier this month and they are looking to close the deal soon, said the first person mentioned above.
With the government all set to roll-out GST from July 1, logistics firms are pushing the pedal on their fundraising plans. Started in 1916, the century-old company had raised private equity funding of Rs 190 crore in 2012 from IDFC Alternatives, the asset management arm of infrastructure-focused lender IDFC Ltd.
The group has several businesses such as logistics services, cold chain storage, handling cargo terminal at ports and managing inland container depots (ICDs).
“The company is looking to raise this capital to expand its cold chain storage facilities across the country. It is also planning to infuse capital for its asset-heavy businesses such as port terminals and container handling facilities.”
The firm operates cargo terminals at Mumbai’s Jawaharlal Nehru Port, Visakhapatnam port, Rozi port near Jamnagar, Haldia and Paradip ports. It is in the process of expanding at Nhava Sheva, Nagpur and Vizag Paradip which will be ready by December 2017. The company has total current capacity of 15,30,000 Teus (containerised) and 10,00,000 Tons (Bulk) and it is in the process of adding capacity at above locations of six lakh tonne and 10 lakh teus.
J M Baxi group also operates an inland container depot at Sonipat, Haryana. Additionally, the infrastructure division owns and operates 15 trains under the private container train operator (PCTO) license of the Indian Railways.
With logistics business coming into focus, last week, Canadian pension fund, Canada Pension Plan Investment Board (CPPIB) invested $500 million to form a joint venture and acquire majority stake in private equity fund Everstone Capital’s logistics business IndoSpace Core. It has an option to acquire assets worth another $700 million which is under construction.
Source: Economic Times