Logistics Company Stellar Value Chain Solutions backed by global private equity firm Warburg Pincus, is acquiring Innovative Logistics Services in an all-cash deal worth a tad less than Rs 100 crore, said two people with knowledge of the deal.
Apart from adding more than 100 customers and bolstering its network in eastern India, Innovative Logistics, based in Kolkata, will support Stellar’s foray and growth into express logistics.
Anshuman Singh, founder of Stellar, confirmed the deal but said he wouldn’t be able to elaborate because due diligence is currently on. Singh is widely credited with building the logistics backend and network of Kishore Biyani’s Future Group. The conglomerate’s logistics arm recently made its debut in the stock markets.
The deal was also confirmed by Innovative Logistics’ managing director Mohan Jha.
Jha while explaining the sell said, “I have known Anshuman for the past 12 years. We are a profitable company but needed a partner for the next phase of growth.”
An unprecedented growth spree with a tax overhaul in the form of the Goods & Services Tax and the grant of infrastructure status to the sector, among other developments have occured logistics space.
Jha further added that the Innovative Logistics, a seven-year-old company, expects to post revenue of Rs 160 crore and earnings before interest, taxes, depreciation and amortisation (Ebitda) of Rs 10 crore in FY18. It has offices in 41 cities and its delivery network spans 2,500 locations, six hubs and 11mini-hubs.