The acquisition marks the first investment of Hindustan Infralog Private Limited (HIPL), a joint venture between DP World and India's National Investment and Infrastructure Fund (NIIF).
Hindustan Infralog Private Limited (HIPL), a joint venture between DP World and India’s National Investment and Infrastructure Fund (NIIF) has announced that it will acquire a 90 percent stake in Continental Warehousing Corporation Ltd (CWCNSL), a multimodal logistics company in India.
CWCNSL’s founders – the Reddy family – will retain a 10 percent stake in the company, and will continue to be involved in its business operations.
The acquisition marks HIPL’s first investment. According to DP World, the purchase consideration is below 5 percent of DP World’s net asset value as of FY2017.
DP World has been operating container ports in India since 1997, and was a key player in building the Indian government’s first private-public partnership programme. DP World is currently present at six locations in India, with over 6 million twenty foot equivalent units (TEU) of capacity.
The company also operates container trains connecting ports to locations inland.
“We are delighted to start our recent partnership with NIIF with this strategic acquisition to develop logistics and warehousing solutions to support India’s growing economy and trade,” said DP World group chairman and CEO Sultan Ahmed bin Sulayem. "As a global trade enabler, we aim to grow in complementary sectors of the global supply chain, which includes inland container terminals, freight corridors and logistics infrastructure.”
“The acquisition of Continental Warehousing Corporation provides us with a scalable platform to accelerate growth in the rapidly evolving logistics sector in India,” he added. “We look forward to actively collaborating with the Reddy family, our partners in Continental Warehousing Corporation, to drive and realise the company’s growth."
Founded in 1997, CWCNSL has a logistics network of warehouses, container freight stations, inland container depots and private freight terminals across several strategic locations in India, with a total capacity of more than 660,000 TEU.
Additionally, CWCNSL’s wholly owned subsidiary, Delex Cargo India Private Ltd, provides door-to-door logistics solutions including freight forwarding, third party logistics, express logistics and delivery across 54 locations in 40 cities.For all the latest transport news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.