Private equity firms Kohlberg Kravis Roberts India or KKR and Goldman Sachs have invested Rs 269 crore (approximately $53 million) in third-party logistics service providers TVS Logistics Services. KKR alone invested Rs 242.4 crore (approximately $47 million) for a significant minority stake. Goldman Sachs is already an existing investor since 2008.
“The additional investment will allow TVS Logistics to continue its expansion both through acquisitions and organic growth, says R Dinesh,managing director at TVS Logistics Services. Besides growing with our existing customer base,we also look forward to our private equity investors Goldman Sachs and KKR helping us expand our capabilities and geographic footprint, he adds.
Fund proceeds will be used to further expand the companys logistics business. This is the second time TVS Logistics has received private equity funding. In 2008,Goldman Sachs made an initial investment in the company.
“Logistics consolidation in an otherwise fragmented industry and best in class supply chain management are clear areas where KKR,partnering with TVS Logistics,can add a lot of value, says Sanjay Nayar,member of KKR and head of KKR India.
Private-equity firms invested $1.9 billion in Indian companies during the quarter ended March 2012,according to data provided by PE and M&A data tracker VCCircle.
KKR has so far invested more than $1 billion in India and holds stakes in companies including Aricent,Avantha Power and Infrastructure,Bharti Infratel,Cafe Coffee Day and Magma Fincorp,while Goldman Sachs has invested over $2 billion in India since 2006.
Kotak Mahindra Capital Company acted as exclusive financial advisor to TVS Logistics and JM Financial acted as exclusive financial advisor to KKR.