Bain Capital buys 30% stake in JM Baxi cargo terminal unit for ₹1,500 crore

The US-based Bain Capital Private Equity has invested about ₹1,500 crore for a 30 per cent stake in International Cargo Terminals and Infrastructure Pvt Ltd, a unit of Mumbai-based JM Baxi Group, in one of the largest deals in the Indian port logistics business.

According to Hindu Business Line the logistics firm will use the funds to pare debt and for its expansion plans.

International Cargo Terminals and Infrastructure runs container handling terminals at Visakhapatnam, Haldia and Deendayal (Kandla) ports, a clean cargo terminal at Paradip port, container freight stations at Visakhapatnam and Jawaharlal Nehru ports, an inland container depot and multi-user logistics park at Sonepat in Haryana and a captive jetty at Rozi port in Gujarat for handling dry bulk cargo including fertiliser.

Through its rail subsidiary, the company also holds a licence from the Indian Railways to run container trains from JNPT, Pipavav, Mundra, Chennai/ Ennore, Vizag and Kochi ports to their hinterland for export-import (EXIM) and domestic services across India.

Rail subsidiary

The rail subsidiary, International Cargo Terminals and Rail Infrastructure Pvt Ltd, owns and runs 13 container rakes linking hinterland with gateway ports, commercial and trade centres and provides logistics support for containerised cargo.

Bain Capital Private Equity declined to comment on the deal that was closed in the last week of December 2020. International Cargo Terminals and Infrastructure could not be reached for comment.

Talks with global PE firms

The company was earlier said to be in discussions with global PE firms such as Multiples Private Equity, Warburg Pincus, Caisse de dépôt et placement du Québec, IFC and Canadian pension fund Canada Pension Plan Investment Board (CPPIB), among others, for fund-raising.

JM Baxi Group is one of India’s top integrated logistics, services and transportation conglomerate with interests spanning the entire gamut of shipping services, logistics, infrastructure and technology.