IFC will invest Rs. 25 crore for a 20% stake in Gateway Distriparks' cold chain logistics subsidiary Snowman Frozen Foods.
IFC, a member of the World Bank Group, will invest the money by subscribing to SFFL's equity shares. The investment is expected to support SFFL's capital needs and help it to expand in existing as well as new locations in India.
SFFL is a cold chain logistics business with a pan-India network. GDL's 50.1% acquisition in SFFL in 2006 marked its foray in the cold chain business. It is currently operational with 16 cold stores in cities including Mumbai, Delhi, Chennai, Bangalore, Kolkata, Pune, Goa, Kochi, Hyderabad and Ludhiana.
Snowman was initially promoted by Amalgam group in 1997. Subsequently, three Japanese companies viz. Mitsubishi Corporation, Mitsubishi Logistics Corporation and Nichirei Logistics Group acquired a significant stake in Snowman. In November 2006, GDL acquired a majority stake in Snowman. Following IFC's subscription, the remaining 53.12 % will be held by GDL while MC, MLC and Nichirei will together hold 25.92%.
Last month, IFC announced that it aims to invest $1 Bn in new investments a year in India over the coming few years. The IFC has been adding about $1 billion in portfolio exposure to the country each year in recent years.
