Tuscan Ventures exits India’s LCL Logistix to strategic investor
Tuscan Ventures has exited its entire interest in LCL Logistix India to the logistics arm of France-based CMA CGM, the world’s third-largest container shipping company.
The value of the transaction was not disclosed. Tuscan invested in LCL in 2008 and held a 15% stake.
Founded in 1990 and based in Mumbai, LCL started out as a freight forwarding business but has since established itself as integrated logistics and supply chain solutions provider. It has 42 offices - 30 of which are in India - and subsidiaries in the US, Canada, Kenya, Tanzania, Uganda and Zambia.
The company generated revenue of around $120 million in the 2014 financial year.
"The immediate opportunities were to deepen the service offering and strengthen the processes at LCL with the goal being to build a strong Indian integrated logistics service provider," said Tuscan's Shagun Kapur Gogia, in a statement. "The infusion of capital in conjunction with expertise that Tuscan's core team brought aided LCL in transforming itself into one of Asia's fastest growing, integrated, end-to-end logistics companies and supply chain solution providers."
CMA CGM Log expects the investment to strengthen its position in India and allow the company to leverage LCL's presence in the US and East Africa. Created in 2001, the company specializes in freight forwarding and logistics, covering maritime services, air freight, multimodal transport, custom clearance, warehousing and distribution.
Mathieu Friedberg, vice president for freight forwarding and logistics activities at CMA CGM Log, said in a statement that 2015 will see the company accelerate its development "thanks to the new synergies generated by this investment, but also with the implementation of CMA CGM Log in 12 new countries."
CMA CGM is headquartered in Marseille and has a fleet of 445 vessels. It carried more than 12.2 million 20-foot equivalent units of cargo in 2014.
Tuscan Ventures invests in businesses that focus on disruptive technology and supply chain services, as well as the food and agriculture industry. Other portfolio companies include full-service cold chain provider ColdStar Logistics.
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