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Piramal Finance Limited expands its investment focus to include Logistics; Commits INR485cr to Apollo LogiSolutions
Kolkata, June 29, 2017: Piramal Enterprises Limited through its subsidiary Piramal Finance Limited has committed INR485cr to integrated third party logistics (3PL) solutions provider, Apollo LogiSolutions (“ALS”). The investments were made through the Corporate Finance Group (CFG), erstwhile Structured Finance Group, of Piramal Finance Limited.
Piramal Finance Limited will be a long term investor with the company as it seeks to scale up its operations over the coming years. ALS plans to use this growth capital in various capacities such as organic growth of existing business, ramping up of new business ventures as well as consolidation of ownership in various joint ventures
Khushru Jijina, Managing Director, Piramal Finance Limited, said “The logistics space has been on our radar as a focus area for a while now. As is standard practice across our platform, we committed to an in-depth study of the sector over the past few quarters which culminated into this transaction. We look forward to more such transactions as we further scale up our investment focus towards this sector.”
Raaja Kanwar, Vice-Chairman & Managing Director, Apollo International Limited said, “Apollo LogiSolutions has been one of the few organized 3PL integrated logistics players with multimodal capabilities and a wide geographical reach. We are pleased to partner with an organization of such repute. This investment will boost our capabilities in providing end-to-end logistics solutions to our customers across India and internationally. Looking ahead, we believe that the logistics sector will be fuelled by increasing economic activity, and structural changes on account of GST rollout.”
The CFG has diversified over time both in terms of sector and offerings. CFG is now sector agnostic and offers capital across the risk curve including senior debt, acquisition finance, promoter finance, private equity exits alongside its previous focus on mezzanine investments. It started with focus on infrastructure which includes roads and renewables but over the last two years has funded corporates across cement, entertainment, security management, packaging, etc. CFG typically targets borrowers who face constraints from traditional channels owing to the current stress in the banking system.
About Piramal Enterprises Limited:
Piramal Enterprises Limited (PEL) is one of India’s large diversified companies, with a presence in Pharmaceuticals, Healthcare Insights & Analytics and Financial Services. PEL’s consolidated revenues were over US$1.3 billion in FY2017, with 51% of revenues generated from outside India.
In Pharma, through an end-to-end manufacturing capabilities across 13 global facilities and a large global distribution network to over 100 countries, PEL sells a portfolio of niche differentiated pharma products and provides an entire pool of pharma services (including in the areas of injectable, HPAPI etc.). The Company is also strengthening its presence in the Consumer Product segment in India.
PEL’s Healthcare Insights & Analytics business, Decision Resources Group, is the premier provider of healthcare analytics, data & insight products and services to the world’s leading pharma, biotech and medical technology companies and enables them to take informed business decisions.
In Financial Services, PEL, through its Piramal Fund Management Division, provides comprehensive financing solutions to real estate companies. The Division’s Corporate Finance Group (CFG) also provides senior and mezzanine growth capital to various businesses across varied sectors that are integral part of India’s growth story. The Division has also launched Distressed Asset Investing platform that will invest in equity and/or debt in assets across sectors (other than real estate) to drive restructuring with active participation in turnaround. The total funds under management under all these businesses are ~US$5 billion. The Company has recently applied for HFC license. The Company also has strategic alliances with top global funds such as APG Asset Management, Bain Capital Credit, CPPIB Credit Investment Inc. and Ivanhoé Cambridge. PEL also has long term equity investments worth ~US$700 million in Shriram Group, a leading financial conglomerate in India.
PEL is listed on the BSE Limited and the National Stock Exchange of India Limited in India.
About Apollo LogiSolutions:
Established in 2009, Apollo LogiSolutions (ALS) is an Integrated Logistics solution provider. The company provides end-to -end integrated logistics services through its strong global network spread across multiple locations. With the vision of providing integrated logistics solutions with multimodal capabilities, Apollo LogiSolutions has achieved a strong position in a short span of time. The company was recently awarded the Best Integrated Logistics Company of the year 2017 and Mr. PSS Prasad was awarded the Best Logistics CEO at the Global Logistics Show 2017. Click here to view the coverage.
