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The South Korean logistics giant CJ Logistics Corporation has increased its footprint in India by investing USD 32 million in CJ Darcl Logistics, its Indian subsidiary. This capital infusion has increased its stake from 51% to 100%, effectively making CJ Darcl a wholly-owned subsidiary. The deal, which involved buying out the stake of Indian promoters, was executed through a rights issue. CJ Darcl, previously a joint venture, had already established itself as one of India's leading logistics firms post CJ's initial investment in 2017. This move is expected to solidify CJ's strategic expansion and operations in India.
CJ Logistics Corporation, the logistics arm of South Korea's CJ Group, has strengthened its hold on the Indian market by injecting USD 32 million into its Indian entity, CJ Darcl Logistics. This investment has enabled the company to raise its stake from 51% to a full 100%, thus transforming CJ Darcl into a wholly-owned subsidiary. Advertisement
The South Korean parent has acquired the remaining stake from CJ Darcl's Indian promoters by way of a rights issue. This deal marks a significant step in CJ Logistics' strategy to cement its footprint in one of the world's fastest-growing logistics markets.
CJ Logistics had initially entered India in 2017 through a strategic investment of INR 570 crore for a 50% stake in Darcl Logistics, later increasing it to 51%, thereby converting it into a joint venture. The recent transaction finalises its transition from a joint venture to full ownership.
CJ Darcl boasts a diversified logistics portfolio covering road, rail, coastal, and air logistics, and is backed by a fleet of over 10,000 vehicles and 250 branches nationwide. It manages around 700,000 tonnes of cargo monthly. CJ Darcl is also reportedly in the process of expanding its warehousing operations to over 3 million square feet in the coming year.
According to reports, CJ Darcl posted revenue of INR 3,565 crore in FY24, up from INR 3,116 crore in FY23, while profit after tax rose to INR 104 crore from INR 92 crore during the same period.
As the country continues to witness a surge in infrastructure and warehousing demands, CJ Darcl's full ownership gives the parent company increased operational flexibility and strategic leverage.
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