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Warburg Pincus invests US$ 125 mn in Stellar Value Chain Solutions

Livemint:  August 04, 2016

Mumbai: Third-party logistics company Stellar Value Chain Solutions Pvt. Ltd on Wednesday said it has received a $125 million investment from Warburg Pincus Llc, a global private equity firm.

“This is a very exciting stage for the $130 billion Indian logistics and warehousing industry, which is rapidly transforming and growing whilst also offering a number of consolidation opportunities. Over the next few years, we are looking to provide integrated logistics solutions which will include modern distribution centres and warehousing facilities at strategic locations across India,” Anshuman Singh, founder and chief executive officer of Stellar Value Chain said in a statement.

Stellar Value Chain serves customers in the food and beverages, fast moving consumer goods, consumer durables, electronics and technology, lifestyle, automotive, pharmaceutical and engineering industries, the statement said.

Warburg Pincus, which has more than $40 billion in private equity assets under management, has invested more than $3.5 billion in 50 Indian companies. Its current logistics investments in India include Continental Warehousing Corporation (Nhava Seva) Ltd, Ecom Express Pvt. Ltd, Embassy Industrial Parks, Gangavaram Port Ltd and IMC Ltd.

In 2011, Warburg invested $100 million in logistics firm Continental Warehousing Corporation (Nhava Seva). As of 31 March 2015, Warburg held a stake of around 43% in Continental, according to shareholding data available with the Registrar of Companies (RoC). Continental is planning an initial public offering to raise as much as Rs.1,000 crore, which will give a partial exit to Warburg, Mint reported in April.

“We believe there is a shortage of high quality providers of outsourced logistics services such as warehouse management and distribution to a wide range of sectors in India. We are excited to partner with Anshuman, and look forward to building Stellar Value Chain Solutions into a world-class logistics company with a strong focus on technology and customer satisfaction. We will also seek to drive further consolidation of the third party logistics sector in India through this platform,” said Viraj Sawhney, managing director, Warburg Pincus.

Stellar Value Chain founder Singh previously set up and led Future Supply Chain Solutions for Future Group. He also served as an executive board member in the Future Group. Before that, he was chief executive officer of Welspun India’s domestic business from 2004 to 2006, and developed a pan-India home furnishings speciality retail chain.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.