DP World began a new investment push in India this week with the acquisition of a Mumbai-based logistics company—the first investment to emerge from a joint venture between the Dubai-based port operator and India’s National Investment and Infrastructure Fund (NIIF). In January 2018, DP World teamed up with the fund to create Hindustan Infralog Private Limited (HIPL), an investment vehicle focused on India with plans to invest up to $3 billion in ports, logistics and related sectors.
With its first investment, HIPL acquired 90% of Continental Warehousing Corporation, a logistics provider of warehousing, container freight stations, inland container depots, private freight terminals and integrated logistics solutions. Continental Warehousing’s founders, the Reddy family, will retain a 10% stake in the company and will remain involved in the business operations.
Founded in 1997, Continental Warehousing also has a wholly-owned subsidiary, Delex Cargo India Private Ltd., which provides door-to-door logistics solutions such as freight forwarding, third party logistics and express logistics across 40 cities. Financials of the deal were not disclosed, however DP World said the purchase consideration is less than 5% of its net asset value as of Dec. 31, 2017.
“As a global trade enabler, we aim to grow in complementary sectors of the global supply chain, which includes inland container terminals, freight corridors and logistics infrastructure,” said Sultan Ahmed Bin Sulayem, group chairman and CEO of DP World. The acquisition expands DP World’s logistics footprint further in India, where the company has operated container port terminals since 1997. DP World is currently present at six locations in India, and also operates container trains connecting ports to the country's interior.
Also this week, DP World extended its reach in South America with the acquisition of a logistics firm in Peru for $315.7 million. Through the acquisition, DP World secured a 50% stake in the country’s second largest container terminal.