Mahindra Logistics receives 200 crore Private Equity investment fromKedaara Capital

Mumbai, April 22, 2014:Mahindra Logistics, part of the USD 16.7 billion Mahindra Group, hasreceived an investment of Rs 200 crore for a significant minoritystake from Kedaara Capital. This is Kedaara Capital’s maideninvestment and is an endorsement of the long term growth potential ofthe Indian logistics sector.

Mahindra Logistics Limited (MLL), a subsidiary of Mahindra &Mahindra Ltd, is India’s leading Third Party Logistics (3PL) serviceprovider. Over the past four years, MLL has grown rapidly bydiversifying its industry segment focus, developing an integratedsupply chain services portfolio, and unique people transportsolutions. 

In 2009, the Mahindra Group identified logistics as a key focusarea, and since then MLL has been part of the Mahindra Partnersdivision, the US$ 800 million quasi private equity division of theMahindra Group. 

Commenting on the deal,Mr. Pirojshaw Sarkari, CEO, MLL,said, “We are delighted to have Kedaara on board with us. They willadd significant value to our expansion plans as well as inevaluating and executing an acquisition led growth strategy. This isa significant step towards an IPO by 2017 and achieving our visionof being India’s most preferred integrated logistics serviceprovider.” 

Speaking on the investment,Mr. Manish Kejriwal, Managing Partner, Kedaara Capital,said, “This investment is in line with our focus of partnering withleading Indian business groups to enhance the value of theirbusinesses. We are privileged to have a long standing, trust-basedrelationship with the Mahindra Group and are excited at thisopportunity to work alongside a terrific management team to helpcreate a world class 3PL company. Further, our collaboration withMahindra Partners will allow us to exploit many other opportunitiestogether.” 

Mr. Sunish Sharma, Managing Partner, Kedaara Capital, added, “Third party logistics is one of the most attractivesub-segments of the Indian logistics industry. It is growingrapidly, driven by the recognition of efficiencies and competitiveadvantages added by integrated 3PL service providers and the growthof the underlying Indian economy. Mahindra Logistics is uniquelypositioned to leverage these tail winds given its scale,differentiated capabilities and high quality professional managementteam.” 

Mahindra Partners exemplifies how the Mahindra Group creates valueby nurturing and building new businesses of the future. Through aturnaround process, they have made MLL into one of the ten mostprofitable companies within the Mahindra Group. 

According toMr. Parag Shah, Managing Partner, Mahindra Partners,“We tap the Group’s unique strengths of constant innovation,prudence and creative business models while incubating new ventures.Kedaara perfectly complements our strategy and is the ideal partnerfor MLL. For the Mahindra Group, a total investment of Rs. 30 crorestill date has now achieved a multifold return.” 

Adding his perspective,Mr. Zhooben Bhiwandiwala, Managing Partner, Mahindra Partners andGroup Head – Legal, Mahindra & Mahindra Ltd,said “Kedaara has a unique operating partner model, in which we seegreat value. MLL has always exemplified the spirit of Mahindra Rise,and Kedaara’s operating model will enhance MLL’s future performance,bringing in global experience and best practices which will keepMahindra Logistics on the growth path.” 

About Mahindra

The Mahindra Group focuses on enabling people to rise throughsolutions that power mobility, drive rural prosperity, enhance urbanlifestyles and increase business efficiency. 

A USD 16.7 billion multinational group based in Mumbai, India,Mahindra employs more than 180,000 people in over 100 countries.Mahindra operates in the key industries that drive economic growth,enjoying a leadership position in tractors, utility vehicles,information technology and vacation ownership. In addition, Mahindraenjoys a strong presence in the agribusiness, aerospace, components,consulting services, defence, energy, financial services, industrialequipment, logistics, real estate, retail, steel and two wheelerindustries. 

In 2012, Mahindra featured on the Forbes Global 2000 list, a listingof the biggest and most powerful listed companies in theworld

For further enquiries please contact:

Ruzbeh Irani

Chief Group Communications & Ethics Officer and Member of the GroupExecutive Board Mahindra Group

91 22 24901441  

About Kedaara Capital

Kedaara Capital is an operationally oriented private equity firm pursuingcontrol and minority investmentopportunities in India. It has raised a substantial amount of over USD 540 million in October2013. 

Kedaara combines the strengths of a well-networked, highly experienced localinvestment advisory andoperating team, with the experience of their international partner, Clayton, Dubilier & Rice, apioneeringglobal private equity firm whose investment model blends financial skills with operatingexpertise. 

Kedaara partners with entrepreneurs, management teams, and family-ownedbusinesses and providesdeep strategic and operational expertise, a consultative approach, and global connectivity to buildenduring value and competitiveness in such businesses. 

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For further enquiries please contact:

Pooja Sabharwal, Genesis B-M