Pristine Logistics & Infraprojects Ltd is close to buying Distribution Logistics Infrastructure Pvt Ltd (DLI) from Infrastructure India Plc (IIP) as the rail-focussed logistics firm looks to expand further into the hinterland riding on the Indian Railways plan to raise modal share in freight from 27 percent to 45 percent by 2030 to cut carbon emissions.
Private equity firm Global Infrastructure Partners India Pvt Ltd-backed Pristine Logistics & Infraprojects is said to have signed agreements with Infrastructure India Plc to lease the rakes owned by DLI, gain exclusivity to run the terminals and trains of DLI for three years along with an exclusivity clause to undertake due diligence and complete the deal by 31 March, multiple sources briefed on the plan said, asking not to be named.
Infrastructure India Plc (IIP), is a close-ended infrastructure fund, registered in the Isle of Man in the United Kingdom and listed on the Alternative Investment Market (AIM), London. The fund invests in core infrastructure and is the only AIM quoted investment company with exposure to Indian transport and energy assets. Its portfolio comprises five assets, two of which are wholly owned including DLI.
The Alternative Investment Market (AIM) is a sub-market of the London Stock Exchange (LSE) that is designed to help smaller companies access capital from the public.
“Pristine Logistics & Infraprojects has started due diligence on the transaction and is in talks with the promoters of DLI to conclude the deal,” said a person familiar with the matter.
A potential takeover of DLI will help Pristine Logistics & Infraprojects expand further into key hinterland locations.
DLI runs an inland container depot (ICD) in partnership with KMLL at Powerkheda in Madhya Pradesh, integrated logistics park, private freight terminal for handling bulk cargo, liquid tank farm and automobile logistics park at Borkhedi in Nagpur, integrated logistics park at Anekal near Bangalore, 10 trains with a Category 1 permit from Indian Railways to operate pan India, over 700 containers, 140 trailers and 29 material handling equipment.
DLI’s facilities are strategically located closer to the industry catchment areas, covering about 60 percent of India’s containerised export-import (EXIM) cargo, with rail and road connectivity and large warehousing.
DLI also owns land parcels at Palwal in Haryana and at Chennai on which it plans to build an integrated logistics park, container freight station-linked free trade warehousing zone, private freight terminal for handling bulk cargo, liquid tank farms, automobile logistics parks and dedicated warehousing facilities.
Pristine Logistics & Infraprojects was founded in 2008 by Amit Kumar and Rajnish Kumar, two former Indian Railways officers after they quit the Indian Railways Traffic Service (IRTS).
Pristine Logistics & Infraprojects currently runs five logistics parks, including rail linked logistics parks, comprising private freight terminals, inland container depots and a dry port, strategically located near key industry clusters in the districts of Kanpur, Ludhiana, Patna, Siliguri and Birgunj (Nepal). The Birgunj ICD is the only rail-linked container terminal connecting Nepal and India.
The Company’s facilities can handle 6,48,000 twenty-foot equivalent units or TEU’s a year.
On 7 February, the firm received a letter of award to construct and operate a Gati Shakti Multimodal Cargo Terminal (GCT) for handling containers at New Rewari station along the Western Dedicated Freight Corridor.
Pristine Logistics & Infraprojects also owns warehousing of some 9,05,000 square feet, and runs about 2,624 domestic standard containers, 395 dwarf containers,390 trailers and 43 rakes.
It also has a Category I license from the Indian Railways to run container trains for export-import-focussed operations across the National Capital Region/Ludhiana to Mundra/Pipavav route, Kanpur to Jawaharlal Nehru Port/Mundra route, Siliguri to Kolkata route and Visakhapatnam/Kolkata to Birgunj route.
The company recently acquired Sical Logistics Ltd for about Rs400 crore under India’s bankruptcy law.
Sical Logistics runs container trains, container freight stations, 3PL, and warehouse management. It’s operations are focussed in South India, particularly at Ennore, Mangalore, Tuticorin and Chennai, and conducts stevedoring operations at Visakhapatnam Port.
