Stellar funding from Warburg Pincus
India-based third party logistics company Stellar Value Chain Solutions has announced that an affiliate of the private equity firm Warburg Pincus has agreed to invest up to $125m in the company. Stellar’s Managing Director and Chief Executive Officer Anshuman Singh previously set up and led the supply chain solutions provider Future Supply Chain Solutions (FSCS).
A statement posted on the Warburg Pincus and Stellar Value websites yesterday (3 August) said: “Stellar is looking to serve a large and growing logistics market in India. The company intends to provide integrated logistics solutions that will include multi-user modern warehousing, primary and secondary distribution, e-fulfilment and cold storage.
“Stellar will enable value creation for its customers across the supply chain through a strong focus on technology and automation. The company will serve customers in the Food & Beverages, Fast Moving Consumer Goods, Consumer Durables, Electronics & Hi-tech, Lifestyle, Automotive, Pharmaceuticals and Engineering industries.”
According to Singh: “This is a very exciting stage for the $130bn Indian logistics and warehousing industry, which is rapidly transforming and growing whilst also offering a number of consolidation opportunities. Over the next few years, we are looking to provide integrated logistics solutions which will include modern distribution centres and warehousing facilities at strategic locations across India.
“Our solutions will help customers realign their supply chain networks and unlock value, especially following the implementation of GST.
“We are excited to partner with Warburg Pincus given the firm’s global expertise in logistics, and experience in working with management teams in India to build durable businesses.”
This is not the first time that Warburg Pincus has made a big move on the Indian logistics sector. In 2015, it announced that it was planning to invest $133m in Ecom Express.
