India's Ambit Pragma exits Spear Logistics to French strategic

FM Logistic plans to use the purchase to gain access to India's contract logistics market, valued from $2.5-3 billion and expected to grow 15-20% annually. The company will also use its resources and expertise to help Spear capture more of this sector.

"Only about 8-10% of the market is catered to by organized players like Spear. While the Indian market is not yet as organized and sophisticated as some of the global counterparts, we are pleased to have witnessed Spear's growth over the years. I am confident that FM Logistics global expertise in this domain will help Spear move to the next orbit of growth," said Mangesh Pathak, a partner at Ambit Pragma, in a statement.

FM Logistic operates in the fields of warehousing, transport and packing, catering to companies in the consumer goods, manufacturing and health sectors. It has more than 19,000 employees across Asia, Eastern Europe, Central Europe and Latin America, and claimed EUR1.1 billion ($1.2 billion) in revenue for the year ended March 2015.

Founded in 2001, Spear manages 75 warehouses in 23 Indian cities, totaling 270,000 square meters of surface area. It provides warehousing, distribution, transport management and other services for companies in the e-commerce, automotive, manufacturing and telecommunication sectors.

The deal marks the end of Ambit's first investment; the firm committed an undisclosed amount to Spear in 2009 and later invested an additional INR70 million ($1.37 million) in 2012 to gain a majority stake. Media reports put Ambit's total commitment to Spear at $6 million from its $65 million first fund.

Currently Ambit is investing out of its second fund. The vehicle launched in 2011 with a target of $150 million and reported a first close of $77 million in 2012; it has not reported a final close yet.

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• Topics
• South Asia
• Support services
• Trade sale
• India
• Ambit Pragma
• Logistics
• Exit