KKR, Goldman Sachs to invest $52 mn in TVS Logistics

Investment to be done to help in expansion of business

Private equity firm Kohlberg Kravis Roberts & Co (KKR) and Goldman Sachs will invest Rs 269 crore in TVS Logistics Services to help it expand business, the three companies said on Thursday.

KKR and its affiliates would invest Rs 242 crore in the unlisted third-party logistics operator while Goldman Sachs pour in the remaining Rs 27 crore, the companies said.

"The additional investment will allow TVS Logistics to continue expansion, both through acquisitions and organic growth," said R. Dinesh, managing director of T V S Logistics Services.

The logistics firm plans to focus on India's automobiles and discrete manufacturing sectors that are seeing rapid growth and have relatively low third-party logistics penetration, Executive Director S. Ravichandran said.

Private-equity firms invested about $1.9 billion in Indian companies during the quarter ended March 2012, down about 30% from last year, due to crowded markets and higher valuations, industry tracker VCCircle.com data showed.

KKR has so far invested more than $1 billion in India and holds stakes in companies including Aricent, Avantha Power and Infrastructure, Bharti Infratel, Cafe Coffee Day and Magma Fincorp.

Goldman Sachs, which made its first investment in TVS Logistics four years ago, has disbursed over $2 billion in Indian companies since 2006.

Kotak Mahindra Capital Company acted as the sole adviser to TVS Logistics while JM Financial advised KKR.