Under the JV agreement, Gati will hold 70% stake and 30% will be held by KWE
The Board of Gati has approved a proposal to form a joint venture (JV) with Japanese global logistic service major Kintetsu World Express under the name ‘Gati-Kintetsu Express’.
Under the JV agreement, Gati will hold 70% stake and 30% will be held by KWE. As part of the transaction, Express Distribution and Supply Chain (EDSC) business of Gati will move into the joint venture company through a Business Transfer Agreement. KWE will invest Rs2,677 million for its 30% stake in the JV through a combination of primary and secondary acquisition of shares. The funds raised from the transaction will be primarily used to reduce debt. The JV company shall be consolidated in financials of Gati.
The proposed joint venture will combine Gati’s expertise in 3PL and express distribution in India with KWE’s freight forwarding expertise and global customer base. The joint venture company will support large customer base of KWE who have operations in India, simultaneously strengthening KWE’s distribution capabilities into the Indian market. Together KWE and Gati will partner in supporting business expansion of domestic and international customers in the Indian market. The JV company shall also invest in high end 3PL facilities, including temperature controlled warehouses. KPMG Corporate Finance was the exclusive financial advisor to Gati Limited.
In the late afternoon, Gati was trading at around Rs41 per share on the Bombay Stock Exchange, 9.99% down from the previous close.
SMIL has joined hands with Ricardo and Sango for technical assistance to the development programs
Sharda Motor Industries Ltd (SMIL), the leading tier-1 supplier to auto industries, has announced the opening of a research & development centre at Mahindra World City, Chennai. The R&D Centre besides providing local support from concept to implementation will also help reduce cost and enhance performance through value engineering and value analysis. SMIL has joined hands with Ricardo and Sango for technical assistance to the development programs.
SMIL has already invested Rs30 crore in the facility and plans to further augment it to Rs75 crore by 2014.
ND Relan, chairman, SMIL said, “The R&D centre will provide customer support for exhaust product development, lead advanced emission control and noise reduction technologies. The centre will also be involved in modeling and simulation tools to design & optimize exhaust components and full system. We will also explore opportunities for joint development and partnership program”
He further added “Chennai was our natural choice for setting up the centre due to the availability of abundant engineering talent and also with the presence of OEM’s.”
SMIL has spent considerable amount of time and resource in building this centre. It took nearly 5.5 years to conceive and 2.5 years to build the R&D centre.
Sharda Motor has 13 manufacturing units which are already operational and two more are in the offing. Sharda Motor Industries spread its tentacles to seven states of India from Uttaranchal in the north to Tamil Nadu in the south through Uttar Pradesh, Haryana, Delhi, Gujarat and Maharashtra.
Total income has increased from Rs13,907.50 million to Rs14,783 million
Shriram Transport Finance Company Ltd, one of the largest asset financing NBFCs in the country, has announced the financial results for the quarter ended December 31, 2011. The company has posted a profit after tax of Rs3,026.80 million for the quarter ended December 31, 2011 compared to Rs3,013.60 million for the corresponding quarter last fiscal.
In the same period, total income has increased from Rs13,907.50 million to Rs14,783 million. Shriram Transport Finance is the flagship company of the Shriram group which has significant presence in consumer finance, life insurance, general insurance, stock broking and distribution businesses.
In the late afternoon, Shriram Transport Finance was trading at around Rs553 per share on the Bombay Stock Exchange, 3.45% down from the previous close.