A joint venture between DP World and the National Investment and Infrastructure Fund (NIIF), Hindustan Infralog Private Limited (HIPL) has taken a 90% stake in Continental Warehousing Corporation (NhavaSheva) Limited (CWCNSL), one of the leading integrated multi-modal logistics players in India. CWCNSL’s founder, the Reddy family, will retain the remaining 10% shareholding and will stay involved in the operation of the business.
This is an important milestone as it is the first investment to be made through HIPL, an investment vehicle which the two partners established last year. HIPL has a remit to invest up to US$ 3 billion in the ports, logistics and related sectors.
CWCNSL was founded in 1997 and operates warehousing, container freight stations and inland container depots across India. These provide a total combined storage capacity of around 660,000 teu. In addition, the company has a wholly owned subsidiary, Delex Cargo India that provides door-to-door logistics solutions.
The acquisition of CWCNSL will enhance DP World’s already strong presence in the Indian market, and will complement its existing ports business. The latter spans facilities in six locations and has an annual throughput capacity of around 6 million teu.
Adi Ehsan Reddy, founder of CWCNSL, says, “The strategic partnership with Hindustan Infralog and its parent, DP World, will have huge potential for logistics infrastructure in India and will enable us to extend our end-to-end value added services to customers.”