Gati exits cold chain solutions business to focus on express distribution and e-commerce

Gati Ltd, a leading express distribution company and part of Allcargo Group, today announced it was exiting Gati Kausar India Ltd, its cold chain solutions business. Gati will sell its approximately 70% per cent stake to existing minority shareholder Mandala Capital AG Limited, a leading private equity firm focused on investments across the food value chain. The company expects the transaction to close within the next 30 days.
Following the closure of this transaction, Mandala, which currently holds about 30% percent, will become the controlling shareholder in Gati Kausar. Mandala has been a shareholder in Gati Kausar since 2014.
By way of this transaction, post-closure, Gati’s consolidated gross debt will come down by around Rs 100 crore. With this, Gati would have reduced its consolidated gross debt by more than 50% over the last 12 months.