Everstone Capital to acquire majority stake in Kailash Logistics for Rs 200 crore

CHENNAI: The largest Indian private equity investor Everstone Capital will invest nearly Rs 200 crore to pick up majority stake in Sri Kailash Logistics-a company which operates an integrated logistics park in Oragadam near Chennai.

Sri Kailash's Logicity-spread across 84 acres and 13 lakh sq ft of warehouse and industrial space-offers supply chain solutions to industrial units in one of India's most industrialised belts. The project is near manufacturing hubs of Renault Nissan, Allison, Apollo Tyres, Asian Paints , Axon Technologies, Daimler India Commercial vehicles, Delphi and Komatsu.

The broad contours of the latest transaction envisages Everstone, through its logistics and warehousing unit IndoSpace, picking up a controlling interest in Kailash Logistics. The founder promoters will keep a minority stake and partner with Everstone in developing the business in southern India. The PE investor will also assume the debt of the target company . A formal announcement is expected next week. Everstone declined to comment, while Kailash Logistics did not respond to a TOI questionnaire.

Earlier this week, Everstone, managing assets worth $3.4 billion, announced a $35million investment in neutraceutical firm OmnuActive Health. India's fragmented logistics industry is on the cusp of a shakeout with the proposed GST implementation. The GST rollout will help companies reduce logistics cost by 1.5-2.5% as supply chains gets reconfigured besides moving towards larger warehouses making companies like Sri Kailash best suited to take the march ahead.