Asia Climate Partners to pick up stake in Indian cold chain logistics firm ColdEX; IEP exits

ADB-backed private equity firm Asia Climate Partners is acquiring a stake in Indian cold chain logistics company ColdEX Logistics Pvt Ltd for an undisclosed amount.

As a part of the transaction, the Hong Kong-based private-equity firm will also purchase the existing stake held by India Equity Partners.

Indian Equity Partners had acquired the stake in ColdEX in December 2010.

The Delhi-based cold chain company today announced that it had executed an investment agreement with Asia Climate Partners.

The move marks the second round of institutional investment in ColdEX Logistics, that claims to own the nation’s largest fleet of over 850 reefer trucks that operate out of 55 branches, six distribution centers. It has over 1500 employees.

Asia Climate Partners, a PE platform for environmental finance in emerging Asia, is launched by Asian Development Bank, ORIX Corporation and Robeco Group. It has approximately $440 million of investment capital to date.

Cold chain can be defined as the transportation and storage of perishable products such as meat, dairy, fruits, vegetables, drugs and medicines under temperature-controlled conditions to increase their shelf life.

Though an agriculture-based economy, India faces the problem of colossal wastage of food products due to lack of food processing facilities. The Indian government is laying special emphasis on focusing on creating a cold chain infrastructure to link the farmer to the consumer and creating a cold chain grid in the country.

““There is a growing demand for perishable foods such as fruits & vegetables and frozen foods such as meat, fish and seafood etc. The need for cold chain is emerging in India and the industry is expected to grow at a CAGR of 28% over the next 4 years and reach a market size of $13 billion in 2017,” Sunil Nair, CEO, ColdEX Logistics said.

The latest round of funding will help ColdEX establish a pan-India footprint for its warehouses in addition to its transportation network.

The company also plans to add new cold-chain warehousing capacity of 50,000 pallets over the next three years with a capital outlay of Rs 250 crore (around $36 million).

Anand Prakash, managing director of Asia Climate Partners, said ColdEX is the largest and fastest growing private company in the cold chain logistics space. “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,” Prakash said

ColdEX’s customers include the likes of Cadbury, Burger King, Yum brands, Starbucks and Amul.

Gaurav Jain, Founder & Managing Director of ColdEX, said, “This investment will enable ColdEX to ramp up capacity and achieve our vision of becoming a total cold chain solution provider to our customers by building world class infrastructure and an affordable and reliable supply chain.”

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.