Global private equity firm Bain Capital said its affiliate has sold its stake in logistics platform J M Baxi Ports & Logistics Ltd to German-headquartered transportation company Hapag-Lloyd for an undisclosed amount.
Following a two-year investment by Bain Capital PE, J M Baxi has expanded its port capacity and logistics units, strengthening its financial standing despite macroeconomic and supply chain obstacles, the firm said in a statement.
Through the acquisition of four significant concessions, including the operation of container terminals in Nhava Sheva and Tuticorin, J M Baxi has recorded a 170% surge in port capacity, it added.
“India is positioned to have a dramatic impact on global trade. Whether we do so will depend on how quickly we develop infrastructure and allied logistics services to integrate into global value chains. The interface among ships, ports, and hinterland, is central to the creation of value,” said Dhruv Kotak, managing director, J M Baxi Ports & Logistics.
In February 2020, Bain Capital, through its affiliate Integral Investments South East Asia VIII, invested Rs 1,317 crore for a 39.20% stake as a private equity investment. Of this, Rs 200 crore was infused in FY22 for the acquisition of a 26% stake in Visakha Container Terminal Private Limited (VCTPL) from DP World and two acquisitions under JM Baxi Heavy Private Ltd. The Kotak family owns a 60.8% stake in J M Baxi Ports and Logistics.
Formerly known as International Cargo Terminals and Infrastructure Pvt. Ltd, J M Baxi Ports and Logistics Ltd is engaged in providing shipping logistics services and operates as a subsidiary of the J M Baxi and Co group, promoted by Krishna Kotak and the family.
The 105-year-old family-owned business, based in Maharashtra, is among the top five leading players in the maritime and logistics industry. The company operates through a network of seven subsidiaries, with its flagship subsidiary being JM Baxi Ports and Logistics.
The subsidiary is involved in the logistics chain, port operations, and cargo-generating and handling activities, through its own container freight station and agri-logistics park at the JNPT port, as well as container terminals at Visakhapatnam, Haldia, Kandla, and Paradip Ports, container train operations, and an inland container depot at Sonepat in Haryana.
For the fiscal year 2021, JM Baxi Ports & Logistics has narrowed its net losses to Rs 5 crore, from Rs 46 crore the previous year on a consolidated basis. Its operating income increased to Rs 1,425 crore in FY21, from Rs 1,266 crore in FY20. Standalone losses stood at Rs 40 crore, a decrease from Rs 55 crore in FY20.
Meanwhile, US-based Bain Capital was established in 1984. It has a global team of over 575 investment professionals and has made primary or add-on investments in over 1,100 companies since its inception. The company focuses on key industries such as healthcare, consumer and retail, financial and business services, industrials, technology, media, and telecommunications.
In addition to private equity, Bain Capital also invests in other asset classes, including credit, real estate, public equity, and venture capital, managing total assets worth over $160 billion.
In March last year, Bain Capital had acquired 24.98% equity stake in IIFL Wealth Management Limited for Rs 3,680 crore ($485.6 million). The PE major also infused Rs 1,330 crore (around $175 million), along with other investors in Delhi-based real estate developer TARC Ltd.
In October, Bain had acquired a stake in CitiusTech joining Baring Private Equity Asia (BPEA) EQT as a shareholder in the healthcare technology services provider.
