Hindustan Infralog, a joint venture between DP World and India’s National Investment and Infrastructure Fund, has acquired a 76 percent stake in Krishak Bharati Cooperative Infrastructure (KRIL), an integrated multi-modal logistics operator, the Dubai-based port operator said.
The joint venture is acquiring the controlling stake through Continental Warehousing, a similar operator it acquired in March 2018. KRIL’s parent company, KRIBHCO, will retain the remaining 24 percent, according to a joint statement. DP World declined to disclose financial details but said the purchase price was less than one percent of its own net asset value of approximately $12 billion.
“[The acquisition] fits with our strategy of developing our logistics capability in key markets and complements our core business in the ports we operate across the country,” a spokesman said.
KRIL operates three major inland container depots in the Indian states of Haryana, Uttar Pradesh and Gujarat, and has container train operations, DP World said. It also has a strong presence in India’s National Capital Region of Delhi and districts from surrounding states, which has a population of 46 million.
Sultan Ahmed Bin Sulayem, group chairman and chief executive of DP World, said in the statement that the acquisition was “highly complementary” to the Continental Warehousing buyout.
“It enables the DP World Group to become a significant operator in the fast-growing inland logistics market,” he said.
The group currently operates six container terminals across five ports in India, supporting over 24 percent of the export/import container trade in the country, the spokesman said.
DP World and NIIF launched Hindustan Infralog in January 2018, with the aim of investing up to $3 billion in ports, terminals, transportation and logistics in India. The government-backed NIIF holds a 35 percent stake in the joint venture, according to DP World’s spokesman.
NIIF did not reply to a request for comment.