Asia Climate Partners backs India's ColdEX Logistics
Asia Climate Partners, a fund set up by the Asian Development Bank (ADB), Orix Corp, and Robeco Institutional Asset Management, has invested in India-based cold chain provider ColdEX Logistics.
The size of the commitment was not disclosed. As part of the transaction, Asia Climate Partners will buy a stake in the company held by India Equity Partners, which invested in late 2010, Livemint reported.
Founded in 1997 as a dry logistics player, the company moved into the cold chain space - leading to a name change - in 2005. ColdEX claims to be India's leading cold chain provider, transporting goods in a fleet of 850 refrigerated trucks at temperatures ranging from 25 degrees Celsius to minus 18 degrees Celsius. Customers include Burger King, Yum Brands and Starbucks.
ColdEX plans to invest INR2.5 billion ($36.4 million) over the next three years, adding 50,000 pallets in cold chain warehousing capacity. With Asia Climate Partners' support, the company wants to establish a nationwide warehousing footprint and make improvements to its transportation network.
"We see tremendous potential in both the company and the cold chain logistics sector in helping improve resource efficiency and reduce food wastage in India. Asia Climate Partners will bring its institutional support to help the company build a pan-India presence and provide a total solution to its customers," said Anand Prakash, managing director of Asia Climate Partners.
India's Associated Chambers of Commerce and Industry projects that the cold chain industry will be worth INR640 billion by 2017. Other private equity activity in the space includes Mandala Capital's acquisition of a 30% stake in Gati in November 2014, while Snowman Logistics - a unit of Gateway Distriparks - went public earlier the same year. Pre-IPO investors included Norwest Venture Partners and International Finance Corporation (IFC).
Asia Climate Partners was launched in August 2014, with the three founding partners agreeing to invest $400 million between them. Last year Bank of Tokyo-Mitsubishi UFJ joined the LP roster. The fund targets green energy-related and low carbon businesses, including renewable energy, clean energy, energy conservation, water resources, agriculture and forestry in India, China and Southeast Asia.
More on South Asia
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.