The Indian logistics sector is set to post stiff competition to its foreign counterparts, with rising investments by private equity (PE) firms facilitating the sector to attain global standards. With Vote in favour of PE investment According to a recent survey conducted by Shippingbiz360, a staggering 100% of the respondents feel that investments made by PE firms will boost the logistics sector and help it to attain global standards. Ravinder Sharma, Proprietor of Lucent Financial Services Pvt Ltd, a mid-sized financial services provider in PE firms invest in logistics companies There are many PE firms which have invested in several logistics companies. Tuscan Ventures, a Mumbai-based PE firm has invested in two logistics companies. Even Aditya Birla Private Equity has plans to invest in the logistics sector. In August, Aureos India Fund and ePlanet Ventures invested US$16 million in Continental Warehouse Corp.Ltd and in April, India Value Fund (IVF) acquired a stake of US$4.3 billion in Inlogistics. In order to raise US$4.5 billion, Reliance Private Equity has started conducting road shows and plans to invest the proceeds of the same in many sectors, logistics being one of them. Due to the global financial meltdown, the first 8 months of 2009 has witnessed only 158 deals worth US$2.83 billion, whereas during the previous year 370 deals worth US$9.8 billion were recorded. The January-August period witnessed six logistics deals, out of which four were reached in July and August. In 2008, 12 deals were reached during the same period. Ramesh Kumar, Proprietor of Fundquest Consulting a mid-sized financial service provider in Bengaluru says, “The investments made by government and PE firms on infrastructure will immensely help the logistics sector in the coming days.” Arup Choudhury |
