New Delhi: Mumbai-based Integrated logistics solutions provider Apollo LogiSolutions Ltd (ASL) is in talks with private equity (PE) investors to raise as much as Rs300 crore to fund its expansion plans, according to two people close to the matter.
The firm has reached out to PE firms, including Hong Kong-based PE firm ADV Partners, for the potential investment, said one of the two people cited above on condition of anonymity as he was not authorized to speak to reporters.
ASL is 90% owned by Apollo International, which is part of the Onkar Kanwar-promoted diversified business house Apollo group. “The fund... would be utilized to expand its present warehousing space in the domestic turf and also to acquire companies in the same space," said the other person.
In response to an emailed query, a spokesperson for ALS confirmed that the company is looking to raise more than Rs300 crore but declined to comment on the investor “since the investment is yet to happen".
A separate mail sent to ADV’s spokesperson was not answered.
ALS, which began operations in 2009, provides end-to-end integrated logistics services through its strong global network spread across multiple locations.
ALS formed a joint venture with German logistics company FIEGE in 2012 to form APOLLO FIEGE Integrated Logistics in which the Indian company owns 60%. In 2013, it acquired a Chennai-based logistics company and also marked its foray into the business of inland container depots through a joint venture with India Glycols Ltd. In 2014, it acquired a controlling stake in Clarion Shipping, a Dubai-based logistics company.
Last year, it also signed an agreement with Singapore-based Pacific International Lines (PIL) to explore logistics opportunities in India.
In March, ALS entered into an agreement with Singamas Container Holdings Ltd (Singamas) to form a joint venture for liquid logistics operations in India. As part of the agreement, ALS will hold 70% stake and will invest around ₹ 300 crore in the venture over the next three years.
Some of the key clients of ALS include Star India Container Line Pvt. Ltd, Worldwide Logistics Systems LLC, Orchid Shipping Pvt. Ltd, Total Logistics India Pvt. Ltd, KD Shipping (I) Pvt. Ltd, among others.
Recently, Business Standard reported that the company would complete its $120 million fund raising to partly finance its expansion in the domestic market and is also likely to unveil plans to launch an IPO by the end of April.
Recently, Union roads minister Nitin Gadkari said the government is considering a proposal to provide infrastructure status to the logistics sector.
ADV was co-founded in 2013 by Asia-focused investment firm Mount Kellet Capital’s India head Suresh Prabhala along with Brad Landes and Jianyi Zhu, who also worked at the investment firm.
The firm currently manages “ADV Opportunities Fund I LP", its debut fund raised in 2014-15 with a corpus of $550 million.
ADV, which has made 10 investments in total till date, has offices in Hong Kong, Singapore, Shanghai, China and Mumbai. The PE firm seeks to make deals between $30 million and $60 million as well as potential larger transaction as co-investments.
In India, ADV Partners has investments in Chennai-based Dr Agarwal’s Healthcare Ltd and sports media management company Technology Frontiers India Pvt. Ltd.
In November, Mint reported that ADV is in advanced talks to buy a significant minority stake in Amber Enterprises Pvt. Ltd, a contract manufacturer of consumer durables such as air-conditioners and washing machines in India.