Morgan Stanley India Infrastructure fund buys stake in LEAP India for $25m

Photographer: Mark Kauzlarich/Bloomberg

Morgan Stanley and LEAP (Leading Enterprise in Advanced Pooling) have announced that Morgan Stanley India Infrastructure, an infrastructure-focused fund, has invested Rs180 crore ($25 million) to acquire a stake in LEAP India.

Founded by Sunu Mathew in 2013, LEAP is India’s largest pallet pooling company with an asset pool of approx. 4 million units including pallets, foldable large containers, crates and utility boxes.

“This is the single largest round of investment raised by LEAP. Now with Morgan Stanley India Infrastructure as a partner, LEAP aims to achieve a total asset pool of 6 million and provide technologically advanced products to the market,” said Sunu Mathew, Founder Promoter and Managing Director of LEAP India.

LEAP’s business is linked to India’s consumption story and primarily caters to fast moving consumer goods (FMCG), consumer durables, beverages, e -commerce, retail, auto and auto-component manufacturing sectors.

The timber pallets and plastic utility boxes are used by companies in FMCG and beverages sectors. LEAP provides these assets on lease and helps in integrating the supply chain across suppliers, manufacturers and retailers. LEAP has a large footprint in India catering to 600 plus customers and 7000 plus touch-points from a pan-India network of 18 warehouses.

“Given its unique business model and the criticality of its assets, for both storage and transportation, LEAP has been able to navigate the COVID-19 situation successfully and has emerged stronger with an increased market share. In terms of market opportunity, India is hugely under-penetrated in terms of palletization,” said Shyamsundar Gurumoorthy, Managing Director and Co-Head of Morgan Stanley India Infrastructure.

The article was first published on livemint.com.

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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.