Warburg in $100m Indian logistics deal

The US private equity firm will make its fourth Indian investment in the past 12 months in NDR Group, one of the largest warehouse providers in India.

Warburg Pincus will invest up to $100 million to acquire a minority stake in Continental Warehousing, according to a company statement.
The stake will be purchased from IL&FS Investment Managers, which will completely exit its holdings in the Mumbai-headquartered company following the transaction, IL&FS said in a separate statement.

Continental Warehousing is the flagship unit of pan-Indian logistics company NDR. The company is one of the largest warehouse providers in the Indian private sector, with a customer base across 50 locations comprising over 10 million square feet of storage space, the company said. Warburg is investing out of its tenth global fund that closed on $15 billion in 2007. The deal marks Warburg's fourth investment in India over the past 12 months, according to a spokesperson from the firm. Spark Capital was financial advisor to Warburg.

IL&FS first invested INR343 million in Continental Warehousing in 2006. The firm subsequently diluted its stake in 2009. The firm said that in aggregate the investment generated an IRR of 27.8 percent per annum.
Last December, Warburg invested an additional $15 million in Bangalore-based engineering services provider QuEST Global, two months after investing a reported $60 million in the company. Warburg had edged out rivals Bain Capital, Kohlberg Kravis Roberts and ChrysCapital with its $60 million bid.

Warburg has invested $2.2 billion in Indian businesses over the past decade, in companies including Ambuja Cements, ICICI Bank and Lemontree Hotels.

The firm has a portfolio of roughly 100 companies and more than $30 billion in assets under management.