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
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.”