VRL Logistics To Sell Power And Cement Biz
VRL Logistics Limited is planning to sell its wind power and cement business to strengthen its focus on core business.
In 2006, VRL Logistics commenced wind power business by setting up a wind farm of 42.5 MW at Kappatgudda, Gadag district in the State of Karnataka . The wind farm consists of 34 Wind Turbine Generators (WTGs) having individual capacity of 1.25 MW.
The company has entered into a power purchase agreement with Hescom and sells power at R3.50 per unit. According to Sankeshwar - Chairman, VRL Logistics, the company has an outstanding payment of R78Cr from the Hubli Electricity Supply Company (Hescom) and an overdue interest payment is to the order of R3Cr.
In 2010, VRL Logistics formed VRL Cements Ltd to foray into Cement business. The company had signed a MoU with Karnataka government during the global investors' meet in June 2010 to set up a 2MTPA cement plant at an investment of R954Cr.
The company is now dropping the plan of entering the cement business as it requires huge investment.
Founded by Vijay and Anand Sankeshwar, VRL Logistics is in the business of providing goods and passenger transportation services. Currently, promoters of the company hold the entire 100% stake in the company.
VRL filed for an IPO in 2010 but the plans were deferred due to unfavorable market conditions. It was also talking to New Silk Route for a R150Cr investment for acquisitions but there is development on the deal.
VRL Logistics has a total fleet strength of 2,829 vehicles and has 12,000 employees and operations spread across 911 branches covering 2,629 locations in the country. It has in total 56 branches and 515 franchisees for passenger transportation business.
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KVEZAR VIEW
| Date | Transaction | Type | Buyer | Size ($mn) |
|---|---|---|---|---|
| 06/02/12 | Wind Power Biz - VRL Logistics (Exit) | M&A | Looking For | - |
| Date | Type | Buyer | Target | Size ($mn) | State |
|---|---|---|---|---|---|
| 02/05/12 | Private Equity | Zephyr Peacock India | Flareum Solar Technologies Private Limited (Formerly Gadhia Solar Energy Systems Private Limited) | 1.00 | Planned |
| 02/05/12 | Private Equity | International Finance Corporation | Mahindra Suryaprakash Limited | 15.90 | Planned |
| 02/05/12 | Private Equity | International Finance Corporation | Solarfield Energy Two Private Limited | 10.10 | Planned |
| 25/04/12 | Private Equity | International Finance Corporation | Inox Renewables Limited | 130.00 | Planned |
Company |
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| Name | Promoters | Office | Competitor | Website |
|---|---|---|---|---|
| VRL Logistics Limited | Vijay Sankeshwar Anand Sankeshwar |
R.S. No. 351/1, NH-4, Bangalore Road, Varur, Hubli | www.vrlgroup.in | |
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