New Delhi, May 26 -- CJ Logistics Corporation, South Korea's largest logistics company, has ramped up its play in India's logistics sector by making a capital infusion into its Indian subsidiary CJ Darcl Logistics Ltd, an integrated logistics service provider.
The South Korean company has invested $32 million (Rs 272 crore), comprising both primary and secondary components, in CJ Darcl. With this, CJ Logistics Corporation's equity stake in CJ Darcl has risen to 56% from 50% earlier.
With the investment, CJ Logistics aims to strengthen CJ Darcl's capital base and fund its next phase of growth. The funds will be directed towards nationwide expansion across multimodal logistics infrastructure, including terminals, advanced warehousing, digital supply chain solutions, and alternative fuel platforms.
"The capital will enable us to scale our integrated offerings, invest in next-generation technologies, and drive sustainable growth," KK Agarwal, chairman and managing director of CJ Darcl, said.
CJ Logistics and CJ Darcl first partnered in 2017, when the KOSPI-listed South Korean company acquired a 50% stake in DARCL Logistics Ltd, which was later rebranded as CJ Darcl Logistics. The remaining 44% stake is still held by CJ Darcl's founders, promoters, and affiliates.
Currently, CJ Darcl operates across India with nearly 200 branches, serving over 2,000 customers in various sectors through a team of over 5,000 professionals. The company provides end-to-end logistics services across industries. It has a fleet of over 1,600 vehicles and 2,500 containers.
As of March 2024, CJ Darcl reported a net revenue of Rs 4,594.46 crore and net profit of Rs 82.78 crore, compared to Rs 4,215.83 crore and Rs 67.70 crore in March 2023, according to VCCEdge. In September 2023, the company had filed its draft papers with market regulator SEBI for a Rs 340-crore initial public offering.
Published by HT Digital Content Services with permission from VC Circle.