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Business News/ Companies / News/  Gati to sell its  cold  chain biz stake to Mandala
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Gati to sell its  cold  chain biz stake to Mandala

On completion of the transaction, Gati will focus entirely on express distribution and e-commerce delivery, the company has said

Gati expects the sale of stake to close within the next 30 days.Premium
Gati expects the sale of stake to close within the next 30 days.

MUMBAI : Gati Ltd, part of Allcargo Group, will exit its cold chain business by selling its entire 70% stake to existing shareholder Mandala Capital AG Ltd for an undisclosed amount.

Mandala, which currently holds a 30% stake in Gati Kausar India Ltd, is a private equity firm focused on investments across the food value chain. Mandala has been a shareholder in Gati Kausar since 2014.

The deal is expected to close within 30 days and it will help Gati cut its consolidated gross debt by around 100 crore, the company said in a statement. The deal would also help the firm more than halve its consolidated gross debt within a year, it said.

Gati said that since coming under the Allcargo fold last year, it has been on a continuous transformation journey to focus on an asset-light, high-return on equity businesses.

The company has either sold or closed four non-core businesses in the past year to focus entirely on express distribution and e-commerce businesses, and regain market leadership.

Gati Kausar provides temperature-controlled transport services to healthcare, meat, bio-pharma, dairy products, organized retail and quick-service restaurant businesses with a fleet of 200 refrigerated vehicles.

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Published: 26 May 2021, 12:29 PM IST
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