NewsOrders & DealsFairfax India Sells 51% Stake in Saurashtra Freight to Japan's Kamigumi for ₹662 CroreFairfax India Sells 51% Stake in Saurashtra Freight to Japan's Kamigumi for ₹662 Crore
Fairfax India Holdings Corporation's subsidiary, FIH Mauritius Investments Ltd, has agreed to sell its 51% stake in Saurashtra Freight Pvt Ltd to Japanese logistics company Kamigumi Co. Ltd for ₹662 crore. Saurashtra Freight operates one of the largest container freight stations at Mundra Port in Gujarat. This deal marks the end of Fairfax India's eight-year partnership with Saurashtra Freight and represents a significant entry of Japanese logistics expertise into the Indian market. The transaction is subject to customary closing conditions and could reshape the competitive landscape in India's logistics sector.
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Fairfax India Holdings Corporation has announced a significant divestment in its logistics portfolio. The company's subsidiary, FIH Mauritius Investments Ltd, has agreed to sell 51% of its stake in Saurashtra Freight Pvt Ltd to Japanese logistics giant Kamigumi Co. Ltd for ₹662 crore.
Deal Highlights
| Aspect | Detail |
|---|---|
| Seller | FIH Mauritius Investments Ltd (subsidiary of Fairfax India Holdings Corporation) |
| Buyer | Kamigumi Co. Ltd (Japanese logistics company) |
| Company | Saurashtra Freight Pvt Ltd |
| Stake Sold | 51% |
| Transaction Value | ₹662.00 crore |
About Saurashtra Freight
Saurashtra Freight Pvt Ltd, based in Mumbai, is a key player in India's logistics sector. The company operates one of the largest container freight stations at Mundra Port in Gujarat, a strategic location for international trade.
Transaction Details
The deal marks a significant shift in ownership for Saurashtra Freight. Upon completion of the transaction, Fairfax India will no longer hold any shares in the company, ending its eight-year partnership with Saurashtra Freight.
Strategic Implications
This move represents a notable entry of Japanese logistics expertise into the Indian market. Kamigumi Co. Ltd's acquisition of a majority stake in Saurashtra Freight could potentially bring new operational strategies and international best practices to the Indian logistics sector.
Management Comments
Prem Watsa, Founder of Fairfax India, expressed satisfaction with the partnership, stating, "We have had a wonderful partnership with Raghav Agarwalla, the founder of Saurashtra Freight, over the last eight years." Watsa highlighted the company's strong financial performance and its high market share in container freight stations at Mundra Port.
Raghav Agarwalla, founder of Saurashtra Freight, acknowledged Fairfax India's support in growing the business. He expressed gratitude for the partnership, saying, "We are thankful for Fairfax India's support over the past eight years in growing our business."
Looking Ahead
The transaction is subject to customary closing conditions. This deal could potentially reshape the competitive landscape in India's logistics sector, particularly in container freight operations at major ports like Mundra.
As global trade continues to evolve, strategic partnerships and investments in key logistics infrastructure are likely to play a crucial role in enhancing India's position in the global supply chain network.
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