InLogistics Gets Funding From Sage Capital; The Fund Plans JV, Focus On SMEs

Mumbai-based private equity firm Sage Capital Advisors (SCA) has picked up an 8 per cent stake in Innovative B2B Logistics Solutions, a Delhi-based private cargo train operating company. It is learnt that the deal is worth about Rs 25 crore. In its one year of operation, Inlogistics has posted a turnover of almost Rs 75 crore.
Inlogistics is one of the 14 private players who were granted the licences to operate container trains by the Indian Railways. It operates seven trains services between East India - North India, South India - East India, North India to South India and North India to West India, according to the company website.
The company has also formed a strategic alliance with Central Warehousing Corporation (CWC) for container train operations. The company’s management include Omi Bhagadiya, Vira Chand Bothra and Sankalp Shukla.
The others in the private container train service business include Rajeev Chandrasekhar’s Hindustan Transportation Infrastructure Ltd in association with NOL of Singapore, Boxtrans Logistics, Central Warehousing Corporation (CWC), Pipavav Rail Corporation Ltd (PRCL) and Hind Terminals, among others.

Sage Plans JV, Own Fund
Meanwhile, a Reuters report says that Sage Capital Advisors plans to form a joint venture with a financial services group to launch a private equity fund or launch its own fund. The firm’s Managing Director Manish Kanchan told Reuters that the JV can raise up to a billion dollars. They plan to reveal the name of the JV partner in a month’s time.
He also said the firm is talking with potential investors to launch a private equity fund of around $200-250 million if the joint venture deal falls through.
As of now, the firm’s proprietary fund (with two investors) has invested Rs 55 crore in four unlisted firms engaged in logistics (InLogistics), infrastructure, real estate and jewellery. Kanchan said that “all the firms will get listed in 2008″.
The firm plans to focus on small and medium enterprises (SMEs) in manufacturing, exports, base metals, logistics and infrastructure in the Tier-I and II cities.