International financial investor AMP Capital Investors has bought a holding in one of India’sleading express groups, Gati, to fund the company’s growth strategy. Gati has also unveiled strong
growth in half-year profits and revenues.Gati announced that its board of directors had approved the issue of 1.6 million equity sharesto a unit of AMP Capital Investors together with 0.4 million convertible warrants. The size of theshareholding was not announced. The express group noted that AMP Capital was a long-term investorwith a strong tradition in supporting companies and management teams in their growth and expansionplans. The board has also approved in principle a foreign rights issue of US$ 20 million.
Mahendra Agarwal, Gati CEO, commented: “These funds will be used for the expansion of Gati’sdomestic and international business.” Gati plans to invest in warehousing, informationtechnology and network expansion, and become a debt-free company by 2009. It aims to build over 19warehouses in the next two years and introduce more value-added services.
Gati has established itself more prominently in the Asia Pacific region by establishing a marketpresence in China (Shanghai & Beijing), Hong Kong, Singapore and Sri Lanka. It has alsoexpanded its distribution network and focused on its warehousing services by introducing over 10facilities across the country.
The Indian express group also announced its results for the half-year ending December 31, 2005.Revenue grew 24 per cent to Rs. 215.21 crores (€40.98 million). Profits soared, with pre-taxprofits up 111 per cent to Rs. 13.44 crores and net profits up 150 per cent to Rs10.10 crores. Gatisaid it had increased its market share and improved capacity utilisation.
