Gwalior-based food cargo supply chain service provider ColdEX Logistics Pvt Ltd has agreed to divest a stake to private equity fund Asia Climate Partners for an undisclosed amount, according to a press release.
Asia Climate Partners, which is backed by the Asian Development Bank and ORIX Corporation of Japan, has also agreed to buy the stake held by India Equity Partners, as part of the deal. India Equity Partners had acquired the stake in ColdEX in December 2010.
With Asia Climate Partners coming on board, this would be the second round of institutional investment in the company.
ColdEX will use the fund being raised to establish a pan-India footprint for its warehouses in addition to its transportation network. Over the next three years, ColdEX plans to add new cold-chain warehousing capacity of 50,000 pallets with a capital outlay of Rs 250 crore.
“This investment will enable ColdEX to ramp up capacity and achieve our vision of becoming a total cold chain solution provider to our customers by building world class infrastructure and an affordable and reliable supply chain,” Gaurav Jain, founder and managing director of ColdEX, said in the statement.
The clients of the company include Cadbury, Burger King, Starbucks and Yum! Brands, which runs KFC and Pizza Hut chains, among others.
“We see tremendous potential in both the company and the cold chain logistics sector in helping improve resource efficiency and reduce food wastage in India. ACP will bring its institutional support to help the company build a pan-India presence and provide a total solution to its customers,” said Anand Prakash, managing director of Asia Climate Partners.
The company has a fleet of over 850 reefer trucks in India that operate out of 55 branches, six distribution centres and has over 1,500 employees.
Cold chain refers to the transportation and storage of products such as meat, dairy, fruits, vegetables, drugs and medicines under temperature-controlled conditions in order to increase their shelf life.
