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NT Bureau
Chennai, Sept 23:

        Sical Logistics Ltd, the provider of logistics solutions for bulk and containerised cargo, has signed up with Old Lane Mauritius IV Ltd to raise $26 million for its new subsidiary called Sical Infra Assets.

        The investment by Old Lane in Sical Infra Assets (SIA) would help to fund the infrastructure business of the company. SIA was formed to undertake large projects like the multimodal logistics hubs at Nagpur, Sical Iron Ore terminal at Ennore, container rail project and Sical Distriparks. The decision to segregate the short-cycle businesses from the longer duration BOT (build, operate and transfer) type assets was to crystalise the value of investments made by Sical into its SPVs (special purpose vehicles).

        'We value the opportunity to associate with Old Lane as an equity partner in SIA. Old Lane shares our vision to build world-class infrastructure for the delivery of logistics solutions to customers,' said Ashwin C Muthiah, chairman, Sical Logistics. The movement of heavy assets from Sical Logistics to SIA and the flow of investment of $26 million from Old Lane were expected to be complete by February 2008. Sical had submitted the application to the Foreign Institutional Promotion Board (FIPB) and the foreign equity would be accepted subject to regulatory approvals.

        'SIA is well positioned to bring efficient solutions to the market place. With an integrated port and rail assets, an experienced promoter in Sical Logistics and our expertise in the scale and scope of portfolio companies, we are looking forward to the growth opportunities in logistics infrastructure which is a key bottleneck in maintaining the growth momentum,' said Hari Aiyar, chairman and managing director, Old Lane India.

        Sical Logistics handles 22 million tonnes of bulk cargo and over 5 lakh TEUs (twenty foot equivalent units) of containerised cargo. The company's network includes an exclusive walk-in berth at Chennai port for ships carrying bulk cargo, a container terminal in Tuticorin, 4.5 lakh sq ft of storage space in 92 warehouses and a contract fleet of over 2,500 transport vehicles. The company has CFS (container freight station) at four locations in India. For the year ended March 2007, Sical Logistics had an income of Rs 990 crore with equity capital at Rs 30 crore.