Ganesh Benzoplast Sells Logistics Business to KKR-backed Cisternina for ₹1,154 Crore
Ganesh Benzoplast will sell its Liquid Storage Tank and Railway Network Businesses to KKR-backed Cisternina Logistics for ₹1,154 crore. The deal is expected to close in 18-24 months. Proceeds will fund expansion in chemicals and EPC businesses. GBL will also earn ₹280 crore from EPC services for Cisternina.
The transaction involves a substantial sale of core business assets and a significant inflow of capital, which will likely reshape the company's strategic direction and financial structure.
The sale of the logistics business for a significant sum and the planned utilization of proceeds for expansion in core businesses like chemicals and EPC indicate a positive strategic move for the company.
Ganesh Benzoplast Limited (GBL) has announced the signing of definitive agreements to sell its Liquid Storage Tank and Railway Network Businesses to Cisternina Logistics Private Limited (CLPL), a platform that will be majority-owned by funds managed by KKR. The aggregate consideration for this transaction is ₹1,154 crore. GBL will sell its liquid storage tank business at terminals in Jawaharlal Nehru Port (JNP), Goa Port, and Cochin Port on a slump sale basis. Additionally, GBL will sell its shareholding in ILSL Rail Logistics Private Limited, which operates the Rail Logistics Business in Daund.
The completion of the transaction is expected to occur in tranches over the next 18-24 months, subject to regulatory and shareholders' approvals. GBL intends to use the proceeds to enhance shareholder value, potentially through a buyback, and to grow its capacity in chemical manufacturing, food preservatives, lube oil additives, chemical trading, and EPC projects.
Furthermore, CLPL will engage GBL for EPC-related services, including the expansion, construction, and building of pipelines and tanks at the JNP facility. These EPC services are projected to generate an additional revenue of approximately ₹280 crore (excluding taxes) for GBL over the next 18-24 months.
Mr. Rishi Pilani, Chairman and Managing Director of GBL, stated that the company believes Cisternina and KKR are well-positioned for the next phase of growth for the liquid storage and logistics business. The management is focused on expanding the chemical business and the EPC business. Mr. Ravi Pilani, President of the Chemical Manufacturing Division, highlighted the focus on "Make in India" opportunities and chemical trading.
About CLPL, founded by Amit Saboo, Kartik Deuskar, and Puneet Kedia, it is a liquid and gas logistics company. KKR's investment will support CLPL's growth.
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