Aqua logistics to buy controlling stake in Star Distribution for Rs9.24 crore
14 Sep 2010
Third party logistics service provider Aqua logistics yesterday said that it will acquire a controlling stake in Chennai-based logistics and warehousing company Star Distribution Logistics Pvt Ltd for $2 million (Rs9.24 crore).
Mumbai-based Aqua logistics will initially acquire a 40-per cent stake in Star Distribution and buy an additional 20 per cent in two years depending on Star reaching certain performance targets.
''We are committed to invest around $2 million in this company. This acquisition will strengthen our distribution and reverse logistics capability and acquire new clients in FMCG, pharmaceuticals, retail and consumer electronics space,'' said M S Sayed, vice chairman of Aqua Logistics.
Star distribution has a good presence in warehousing and last mile logistics solutions space. It has offices in 20 cities, and delivers cargo to 300 towns nationwide.
Aqua Logistics provides end-to-end solutions in the logistics and supply chain domain to its customers. Its capabilities include supply chain consulting, logistics, operations strategy, sourcing and procurement planning, fulfillment operations, customer service and after sales support.
In June 2010, Aqua Logistics acquired a 60-per cent stake in three Hong Kong-based companies, CIT Logistics Limited, TAG Logistics Limited and AGI Logistics Limited.
Aqua had raised Rs150 crore from the capital market in January and posted sales of Rs322 crore in FY 10 and net profit of Rs20.54 crore.