Gateway Distriparks Limited
CORPORATE
Norwest Venture Partners to Invest INR 60 Crore in Snowman Logistics Ltd, Subsidiary of Gateway Distriparks Ltd
INR 60 Crores to fund the growth plans of Snowman Logistics Limited, one of India’s largest temperature controlled storage and transportation solutions provider
A high quality investor joins Snowman as a significant shareholder
Gateway Distriparks Limited (GDL) and its subsidiary, Snowman Logistics Limited (SLL) have today executed a share subscription agreement with Norwest Venture Partners VII-A-Mauritius (NVP), pursuant to which NVP will invest Rs. 60 crores in SLL by subscription to SLL’s equity shares (NVP Investment). Subsequently, GDL, SLL, NVP, and certain other existing shareholders executed a shareholders’ agreement.
GDL will acquire 5.0% (pre-NVP Investment) shareholding in SLL IFC for a total consideration of Rs. 18.0 crores (GDL Acquisition). Following the completion of the GDL Acquisition and the NVP Investment (“the transactions”), NVP will hold 14.3% in SLL.
SLL provides temperature controlled storage and transportation solutions for a variety of products including dairy products, ice cream, processed food, sea-food and poultry and meat. As on date, SLL’s temperature controlled storage infrastructure is spread across 25 facilities at 18 locations across the country capable of warehousing in excess of 45,000 pallets. The Company operates over 220 leased and owned refrigerated trucks in its transportation solutions division. The NVP Investment will augment SLL’s resources during its growth phase, helping the Company to expand at both existing and new locations in India.
Commenting on the transaction, Mr. Gopinath Pillai, Chairman, SLL, said “I am delighted to welcome a pedigreed investor like NVP as our shareholder. With NVP as a partner, we aspire to consolidate our market-leading presence in India’s temperature controlled logistics sector and meet the growing needs of our customers through a wider geographic presence and a larger pallet capacity”.
Mr. Sohil Chand, Managing Director, NVP India said “We are excited to be partnering India’s market- leading temperature controlled logistics player, Snowman. We are extremely confident about the prospects of the Indian cold chain sector and Snowman’s market position and believe that the Snowman story, predicated on the Indian consumption theme, has huge potential”.
HDFC Bank acted as a sole advisor to the transactions.
About Gateway Distriparks Limited
GDL is a container logistics company with a pan-India presence operating Container Freight Stations (CFS) and Inland Container Depots (ICD). GDL operates two large CFSs at JNPT and CFSs at Chennai, Vizag and Kochi. GDL operates the temperature controlled logistics business through its subsidiary, Snowman Logistics Limited and operates its own container trains and Rail-ICDs through another subsidiary, Gateway Rail Freight Limited.
Head quartered at Bangalore, SLL is a leading all India player in the temperature controlled logistics sector in India with 25 facilities at all the major cities in India, including Mumbai, Delhi, Chennai, Bangalore, Calcutta, Pune, Kochi and Hyderabad.
Norwest Venture Partners (NVP) is a multi-stage investment firm that has partnered with entrepreneurs to build great businesses for more than 50 years. The firm manages over $3.7 billion in capital and has funded more than 500 companies since inception. Headquartered in Palo Alto, California, NVP has subsidiaries in Mumbai and Bengaluru, India and Herzelia, Israel. NVP makes early to late stage venture and growth equity investments across a wide range of sectors including: technology, information services, business services, financial services, consumer products/services and healthcare. For more information visit: www.nvp.com.
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