Singapore Cargo, IBM eye stake in Deccan Cargo

Bangalore: The list of investors who want to board GR Gopinath’s end-to-end logistics venture, Deccan Cargo, is growing.
After names like Anil Ambani and Azim Premji’s investment arms that were apparently interested, IBM Venture Capital and Singapore Cargo have shown interest. The two seem likely to join Intel Capital as the three investors who will cumulatively invest around $55 million in this venture, which is hoping to take off by June 2009.
Industry sources say Intel Capital has shown definite interest in investing $25 million in this venture. “A time-bound proposal given by them had recently expired, but Intel has renewed it,” say sources.
IBM Venture Capital — which ordinarily does not take equity exposures — is understood to have shown interest for a small equity exposure, of around $3 million, in this venture that is riding heavily on technology adoption.
Sources close to Gopinath said that Singapore Cargo will be the second-largest investor after Intel Capital in this venture. Edelweiss Capital is running the mandate of securing investors for Deccan Cargo and is hoping the enterprise valuation will be around $150 million. Gopinath was not available for comment.
The cargo operations, in addition to air transportation, will also provide ground logistics services like using roads and railways. Industry sources say the company has leased A-310 aircraft and taken Jude Fonseka, formerly with FedEx, as CEO of the new cargo venture. The company, over a two-year period, is expected to operate 11 aircraft.
07/03/09 Business Standard/MSN.com

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Categories: Cargo Mar 2009, Deccan Aviation Mar 2009, Foreign Mar 2009, New Mar 2009