Edelweiss Capital to hunt PE investors for Deccan Cargo

Mumbai: Aviation entrepreneur G.R. Gopinath, founder of the country’s largest low-fare airline Simplifly Deccan (erstwhile Air Deccan), has mandated Mumbai-based investment banking firm Edelweiss Capital Ltd to seek out private-equity investors for his new cargo airline.
Gopinath, who owns 100% of Deccan Cargo, plans to dilute up to 26% of his stake and eventually list the company to provide private equity investors an exit opportunity, said a person familiar with the development, asking not to be identified.
Deccan Cargo plans to invest $200 million (about Rs863 crore) over the next three years, the person said.
Infosys Technologies Ltd, India’s second largest software exporter, has won the mandate to design and implement technology that will allow Deccan Cargo to offer online “track and trace” facilities for customers, and help cut costs, this person also added.
Gopinath, now vice-chairman of Deccan Aviation Ltd after liquor baron Vijay Mallya’s Kingfisher Airlines Ltd took over the airline, has registered a new company named Deccan Cargo and Express Logistics Pvt. Ltd for executing the cargo airline venture.
04/07/08 P. R. Sanjai/Livemint

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Categories: Cargo Jul 2008, Deccan Jul 2008