Gati Limited, a Hyderabad-based express distribution and supply chain company, has formed a new joint venture subsidiary called Gati-Kintetsu Express Private Limited with Japan’s Kentetsu World Express (KWE) that holds 30 per cent stake in the entity by investing Rs 267.7 crore.
KWE has received the foreign investment promotion board (FIPB)'s approval for the same and the monetary transaction has been culminated, the company said in a press release on Thursday.
Gati-KWE expects to provide a seamless transfer for cross-boarder trade through a single-window solution to its customers like Texas Instruments, HP, Panasonic and Toshiba, it said. This fund infusion will also make Gati’s balance sheet much stronger through a significant de-leveraging of the debt and reduction in interest costs up to 50 per cent, the release added.
“The JV with KWE will set a new benchmark in express distribution and supply chain solutions in India,” said Mehendra Agarwal, founder and chief executive.
