| Chennai, 24 April 2007: Sical Logistics Ltd, India’s leading provider of integrated multi-modal logistics for bulk and containerized cargo, today announced the appointment of Ashwin Muthiah as Chairman of Sical’s Board of Directors. The decision was taken at an extra-ordinary general meeting held in Chennai today.
The newly re-structured Board would consist of two promoter nominees, one nominee director from IDFC Private Equity, and three independent directors. Luis Miranda, President and CEO of IDFC Private Equity Fund 2, has been inducted as IDFC Private Equity’s nominee Director, while Karthik Menon, Sical’s Vice_President – Finance and Strategy, has been inducted as a promoter nominee and whole-time Director.
IDFC-PE preferential equity terms finalised
In March 2007, IDFC private Equity Fund 2 (a part of IDFC Private Equity) proposed an investment of Rs 1.1 billion in Sical Logistics via a preferential issue of equity shares at Rs 222 per share. A formal agreement to this effect was signed between. Ashwin Muthiah and Luis Miranda in Chennai recently.
The investment will fund Sical’s equity participation for initiatives such as Sical’s pan-India container train services, the iron ore terminal at Ennore, and the road and rail terminals at the Multimodal International Hub Airport at Nagpur (MIHAN), as well as to retire high cost borrowings.
Proposal to set up dedicated infrastructure asset company
Sical Logistics has proposed to set up a dedicated wholly owned subsidiary that will own infrastructure-oriented and asset–intensive businesses. This move, subject to relevant shareholder and other regulatory approvals, will enable the segregation of Sical’s services-oriented businesses from the infrastructure-oriented businesses and allow dedicated management focus for each segment.
Comment from Sical Chairman Ashwin Muthiah
Sical Chairman Ashwin Muthiah said that the restructuring of Sical’s Board and the active induction of a top-tier strategic investor like IDFC Private Equity was a definitive step towards making Sical a professionally managed, board-run company.
“I am excited at the prospect of having IDFC-PE as our partner in growth, given their extensive knowledge of the logistics and infrastructure sectors and financial expertise. Without doubt, we are taking the right steps towards making Sical the largest integrated multimodal logistics player in the country,” Ashwin Muthiah said.
“I have always maintained that people and capital are the most important challenges to our growth; Sical has gone through a management transition over the last few months and inducted professionals with specialised expertise in logistics operations across the organisation. We are building single-window solutions for customers and shifting to bottom-line focused, region-centric presence,” added Ashwin Muthiah
About Sical
Sical Logistics Ltd is India’s leading provider of integrated multi-modal logistics for bulk and containerized cargo-port logistics; inland logistics; container logistics; and offshore logistics. Sical's delivery network includes an exclusive walk-in berth at Chennai for ships carrying bulk cargo; a container terminal at Tuticorin, 1.9 million square feet of storage across over 100 warehouses; owned and regularly contracted fleet of over 2400 transport vehicles, and container freight stations at 4 locations across India. Sical's FY2005-06 revenue was Rs 9.60 billion on Rs 301.9 equity capital.
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Ogilvy Public Relations Worldwide, Chennai
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Email: samantha.unnikrishnan@ogilvy.com |
