Gati Ltd, a leading express distribution company and part of Allcargo Group, has announced it is exiting Gati Kausar India Ltd, its cold chain solutions business. Gati will sell its approximately 70 percent 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 Rs 100 crore. With this, Gati would have reduced its consolidated gross debt by more than 50 percent 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, organized retail and quick-service restaurants. The company operates a 5,500-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.