Dubai – Mubasher: Hindustan Infralog Private Limited (HIPL), a joint venture (JV) between DP World and the National Investment and Infrastructure Fund (NIIF), on Sunday unveiled a majority stake acquisition in an Indian company.
HIPL acquired a 90% stake in Continental Warehousing Corporation (Nhava Seva) Ltd (CWCNSL), which is an integrated multimodal logistics company in India.
“CWCNSL’s founders, the Reddy family, will retain the remaining 10% shareholding and will remain involved in the business operations,” DP World stated.
The acquisition is below 5% of DP World’s net asset value for the fiscal year 2017 and is considered the first investment nu HIPL.
Commenting on the acquisition, DP World Group chairman and CEO Sultan Ahmed Bin Sulayem said his company “delighted” to begin investing through HIPL, indicating that the new deal will develop logistics and warehousing solutions which in turn will support India’s growing economy and trade.
“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. [Acquiring CWCNSL] provides us with a scalable platform to accelerate growth in the rapidly evolving logistics sector in India,” bin Sulayem added.
HIPL is a new investment JV created to invest up to $3 billion in ports, logistics, and related sectors.
“The acquisition of CWCNSL will further enhance DP World’s presence in the entire logistics value chain in India. The current operations of CWCNSL are highly complementary to the Group’s existing business in terms of the business model and geographic footprint providing significant new revenue opportunities over the long term,” DP World highlighted in its statement released on Sunday.
India’s CWCNSL is a leading integrated multimodal logistics provider of Warehousing, Container Freight Stations (CFS), Inland Container Depots (ICD), Private Freight Terminals (PFT) and integrated logistics solutions. Its logistics network covers key strategic locations in India with over 400 acres in surface area and 660,000 twenty-foot equivalent units (TEUs) in capacity.
“We look forward to actively collaborating with the Reddy family, our partners in Continental Warehousing Corporation, to drive and realize the Company’s growth,” DP World’s top executive concluded.
