Fairfax India buys controlling stake in Saurashtra Freight

According to a statement, the capital will also be applied to an expansion effort across all of India’s major ports and for penetrating new verticals. The acquisition from parent company Saurashtra Infra & Power is expected to close in the first quarter of the year.

Saurashtra claime to operate the biggest container freight business at Mundra Port, India’s largest and fastest growing port. It provides services such as container transportation, loading, cargo storage and maintenance.

“The company is strategically located in the state of Gujarat and caters to the fast-growing businesses in western and northern India,” said Prem Watsa, chairman of Fairfax India. “We look forward to a long-term partnership with [Managing Director Raghav Agarwalla] to grow Saurashtra Freight into a leading logistics company in the country."

India’s logistics sector is estimated to be worth about $130 billion and is expected to grow rapidly with the introduction of more professionalized international supply chains. Increased private equity interest in this space includes a $13 million round of funding for warehousing industry supplier Leap India and a trucking bolt-on acquisition by Warburg Pincus-backed Stellar Supply Chain Solutions.

Fairfax India raised $500 million through a public share sale and a private placement late last year. Recent activity by the firm otherwise includes a $55 million investment in aroma chemicals maker Privi Organics.

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• Topics
• South Asia
• Industrials
• Buyouts
• India
• Logistics
• shipping