The company is already in talks with a couple of PE players and a deal is expected to be closed soon. This is company’s third round of expansion aimed at putting it on top of the logistics map of south India.
R Rajkumar, managing director, SKLL, said the company planned to raise roughly Rs 200 crore through the PE route mainly for the expansion of the logistics park at Oragadam, near Chennai.
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“We are in touch with a number of private equity players to raise funds to finance our next stage expansion plans. However, we have not finalised the deal yet. A decision can be expected very soon,” he said.
Shri Kailash Logistics is a part of the Chennai-based Shri Kailash group, which has interests in logistics and real estate other than the paper industry. The group, which has a major interest in fleet logistics, has developed a first-of-its-kind logistics park at Oragadam. The park is spread over 60 acres and targeted warehousing service space of 1.5 million sft when fully complete with all modern service facilities and infrastructure built-in. Of the 60 acres, 22 acres had been developed for logistics facilities. The additional land would be fully utilised by 2016. Rajkumar said roughly Rs 450 crore would be invested for the second and third phase of development. It plans to build logistics parks at Bangalore and Coimbatore for which it has already identified land.
The company is set to complete an additional 600,000 sft by November at Orgadam. In the third phase, 900,000 sft will be added by September 2016 thereby ensuring full utilisation of the existing land bank, he said.