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Aureos makes partial exit from Continental Warehousing

Funds managed by Aureos Capital have sold part of their stake in Continental Warehousing Corporation (Nhava Seva) Ltd, one of India’s leading integrated logistics solution providers, to global private equity firm, Warburg Pincus.

Aureos Capital is a private equity fund management company specialising in investing in small and medium sized businesses in emerging markets. The sale is Aureos Capital’s fourth exit from a portfolio of eight companies in India, where it has been increasingly active over the last five years through its South Asia Funds.
 
Since launching the Aureos South Asia fund in 2006, Aureos’ India team has focussed on investing in emerging sectors and companies that will capture the growth of the domestic economy, but which have remained largely unsupported by mainstream international investors.  These include sectors such as clinical research, logistics, telecom solutions, solar technology, green energy and healthcare.
 
Aureos says that the performance of the Aureos South Asia fund has fuelled investors’ appetite for opportunities in India’s emerging sectors. Aureos hopes to intensify investment activity in India soon in response to this demand. 

Balaji Srinivas, Managing Partner at Aureos India Advisors, says: “Continental Warehousing is another successful exit for Aureos in India, and an illustration of the success of Aureos’ strategy of investing in sectors which, like logistics, are driven by the growth of India’s economy, but still relatively under-explored by major international investors.

 “As India’s growth continues apace and Aureos steps up our activity here, we will be exploring more good quality opportunities in these emerging sectors.”

The acquisition from Aureos forms part of Warburg Pincus’s USD100 million investment in Continental Warehousing Corporation (Nhava Seva) Ltd (CWCNSL), the flagship company of NDR Group. The investment will enable the logistics firm to set up inland container depots and container terminals across India.

Aureos Funds invested in Continental Warehousing in July and December 2009 acquiring a significant minority stake. The Aureos Funds will retain a smaller minority stake in the company after this transaction and will continue to be part of the company’s future growth.

Continental Warehousing operates one of the largest Container Freight Stations and warehousing networks in India, encompassing 6.5 million sq. ft. of storage area across 50 strategic locations in India. The group’s activities also include inland container depots, port operations, third party logistics and transportation and express cargo.

G V Kumar, Partner at Aureos India Advisors, says: “With the expansion of India’s retail sector and the onset of rapid urbanisation outside the major cities, we saw logistics as an increasingly important sector.

“Aureos’ involvement with Continental has proved very productive, and this partial exit enables Aureos to crystallise returns for its investors, while at the same time remaining very much a part of Continental’s exciting future.”

N Adikesavulu Reddy, Chairman and Managing Director, CWCNSL, adds: “The investment received from Aureos helped the company in its ongoing capex plans; I am happy that the company performed as per expectations, and could deliver attractive returns to its investors.”

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