Leading express distribution company and part of Allcargo Group, Gati Ltd today announced it was exiting Gati Kausar India Ltd, its cold chain solutions business to focus entirely on express distribution and ecommerce.
Gati had earlier reported widening of its consolidated loss at INR 173.40 crore in the March quarter.
The company will sell approximately 70% per cent of its stake to existing minority shareholder Mandala Capital AG Limited, a leading private equity firm focused on investments across the food value chain. The company expects the transaction to close within the next 30 days.
Following the closure of this transaction, Mandala, which currently holds about 30% percent, will become the controlling shareholder in Gati Kausar. Mandala has been a shareholder in Gati Kausar since 2014.
By way of this transaction, post-closure, Gati’s consolidated gross debt will come down by around INR 100 crore. With this, Gati would have reduced its consolidated gross debt by more than 50% over the last 12 months.
Gati, since coming under the Allcargo fold last year, has been on a continuous transformation journey to focus on asset-light, high-return on equity businesses. It has sold or closed down four non-core businesses over the last year, so as to focus entirely on the express distribution and e-commerce businesses and regain market leadership position.
Gati Kausar provides temperature-controlled transport service across verticals comprising healthcare, meat, bio-pharma, dairy products, organised retail and quick-service restaurants. The company operates a 5500-pallet state-of-the-art warehouse at Dharuhera in Haryana, a 300-pallet warehouse in Delhi for city distribution and a 3500-pallet leased warehouse in Mumbai. With an extensive fleet of 200 refrigerated vehicles, Gati Kausar can transport cargo at temperatures as low as -25 deg C.
About Gati Limited
Founded in 1989, Gati Limited – An Allcargo Logistics Group Company is a leading Express Distribution company. With a strong presence across Asia, including a nationwide network it covers 735 out of the country’s 739 districts, and more than 19,800 PIN Codes.
Gati-Kintetsu Express Private Limited (Gati-KWE) is a Joint Venture between Gati – India’s pioneer and leader in Express Distribution and Supply Chain Solutions, and Kintetsu World Express (KWE) where KWE holds 30% stake in Gati-KWE and Gati holds the remaining 70%.
About Mandala Capital
Mandala Capital is a leading private equity firm focused on long term and sustainable investments across the food value chain in India and South East Asia. It provides complete financial and operational support to transform businesses, create operational value and help companies achieve sustained leadership in their sectors.