Transaction Details

Ganesh Benzoplast Limited (GBL) has signed definitive agreements with Cisternina Logistics Private Limited (CLPL), a bulk liquid and gas storage and logistics platform that will be majority owned by funds managed and advised by KKR.

Assets Being Sold:

  • Liquid storage tank business at terminals located at Jawaharlal Nehru Port (JNP), Goa Port, and Cochin Port on a slump sale basis
  • Shareholding in ILSL Rail Logistics Private Limited (a wholly owned subsidiary of Infrastructure Logistics Systems Limited, which is a subsidiary of GBL), which operates the Rail Logistics Business situated in Daund

Transaction Value: Aggregate consideration of INR 1,154 crore, subject to terms detailed in definitive agreements

Timeline: Completion subject to necessary regulatory and shareholders' approvals, expected to occur in tranches over the next 18-24 months

Strategic Use of Proceeds

GBL will utilize the sale proceeds for:

  • Growing and expanding capacity for manufacturing of chemicals, food preservatives, and lube oil additives
  • Expanding chemical trading operations
  • Executing higher value projects in the EPC business

Shareholder Value Enhancement

GBL will consider enhancement of shareholder value through corporate actions including buyback as per regulatory provisions.

Additional EPC Contract

CLPL has entered into definitive documents to engage GBL for EPC services relating to:

  • Expansion, construction, and building of pipelines and tanks at the JNP facility
  • Expected to generate additional revenue of approximately INR 280 crore (excluding taxes) to GBL over the next 18-24 months

Business Profile Context

GBL is one of the leading independent Liquid Storage Tank (LST) providers with:

  • Specialization in storage and handling of all liquid chemicals and oil products
  • Storage terminals at JNP, Cochin Port, and Goa Port
  • LST portfolio of ~500,000 KL of static capacity
  • Additional businesses in manufacturing specialty chemicals, food preservatives, oil additives, and EPC services

Management Commentary

Mr. Rishi Pilani, Chairman and Managing Director:

  • GBL has built a strong liquid storage and logistics business over several decades
  • Believes Cisternina and KKR are well positioned to support its next phase of growth
  • Management focused on growing chemical business by adding new product lines and increasing scale of EPC business
  • Thanked shareholders for continued support

Mr. Ravi Pilani, President of the Chemical Manufacturing Division:

  • Significant milestone for GBL
  • Chemical Manufacturing Division will focus on building new Make in India opportunities along with trading chemicals
  • Expects to deliver significant growth over the next decade
  • Excited to achieve expectations of stakeholders

About Cisternina Logistics

Founded by infrastructure veterans Amit Saboo, Kartik Deuskar, and Puneet Kedia

  • Liquid and gas logistics company offering primary and secondary distribution solutions across India
  • Funds managed and advised by KKR will make a majority investment in CLPL

Mr. Amit Saboo, Director, CLPL:

  • KKR's global perspective, deep expertise, and strong understanding of infrastructure businesses will be invaluable
  • Thanked Rishi Pilani and entire GBL team for support
  • Excited about the opportunity ahead