Chennai, March 13, 2007: Sical Logistics Limited (“SICAL”) announced today that IDFC Private Equity Fund II, a fund managed by IDFC Private Equity has offered to invest Rs.1.1 billion in equity shares of the logistics business of Sical, the leading integrated logistics player. Sical has presence across four verticals – inland logistics, port logistics, container logistics and offshore logistics. The Company can therefore offer integrated outsourced logistics services across the value chain to its customers. The Company has recently won concessions for the Ennore Iron Ore Terminal, Chennai Container Terminal in Joint Venture with Port of Singapore Authority (PSA), Mihan rail and road terminals in Nagpur and container train licence for Category I from the Ministry of Railways. Currently, a leader in bulk logistics, it plans to expand it’s logistics services across other high growth verticals like retail, foodgrains, cold chain and automobiles.

SICAL was incorporated as a private limited company on 6 May 1955 by the late Dr. M.A. Chidambaram and his son Dr. A.C. Muthiah. It became a public limited Company on 20 March 1981. SICAL commenced operations primarily as a trading company in various commodities. During the 1970’s and 1980’s the company moved into the logistics business, first as custom house agents, then as ship agents and then stevedoring. SICAL positioned itself as an integrated logistics service provider in the 1990’s by creating synergies between its port handling, trucking and warehousing businesses.

Hiving off non-core businesses

Sical has already articulated its intention to position itself as a pure play integrated logistics provider. The Company is taking the necessary steps to bring this to a logical conclusion and is now in the final stages of divesting its non core business including Palm Oil, Refractory, Auto, Drums, Agri-Bio Products, Specialty Chemicals and Flexible shafts. Buyers have been identified and relavent due diligence exercises are being carried out as a last stage. It is expected that a significant portion of the hive off exercise will be completed within FY 2007.

Mr. Ashwin Muthiah, Vice Chairman, said, “We have grown from a small trading company to the largest bulk cargo handling company in the last 50 years. Over the last decade, we have invested a lot of time, money and effort towards becoming an integrated logistics player. We have in the recent past won a lot of concessions which will help us become the largest third party logistics player in the country. We were therefore looking for an equity partner who understood our business well and had the capability to help us achieve our ambitious growth plan. We are pleased to have the largest infrastructure private equity investor in India as our partner in growth.”

Mr. Luis Miranda, President & CEO, IDFC Private Equity remarked, “We are extremely happy to partner with Sical, the leading bulk logistics company in the country. We are excited about the growth plans of the company and look forward to partnering with them in achieving their ambitions. The company has highly motivated professionals at the helm of affairs and has been expanding its management team to build a world class business. As the largest Private Equity Investor in Indian Ports, Airports and Roads, investments in leading logistics companies was our next logical step and we are glad to partner with a leading company in this sector. ”

SSKI Corporate Finance Private Limited was the sole advisor to Sical.

About Sical Logistics Limited (Sical): Sical was incorporated as a private limited company on 6 May 1955 by the late Dr. M.A. Chidambaram and his son Dr. A.C. Muthiah. Sical has presence across four verticals – inland logistics, port logistics, container logistics and offshore logistics. The Company can therefore offer integrated outsourced logistics services across the value chain to its customers. The company has in the recent past won a lot of concessions which will help it become the largest third party logistics player in the country.

About IDFC Private Equity (IDFC PE): IDFC PE is the leading private equity investor in infrastructure in India. It manages funds of Rs. 28,500 million (US$ 630 million). Other investments of IDFC PE include GMR Infrastructure (partially exited), Gujarat State Petronet (partially exited), Chalet Hotels, Hotel Leelaventures (exited), Delhi International Airport, L&T Infrastructure Developers, Manipal Health Systems, Gujarat Pipavav Port, Krishna Godavari Gas Network, Delhi Assam Roadways and Quipo.