Capt Gopinath's new venture, Deccan Cargo, to raise $50 million PE funding
15 Jul 2008
Indian aviation's low cost services pioneer, Capt GR Gopinath, who made his low cost carrier Air Deccan a household name is now set to raise equity for Deccan Cargo, a new cargo and logistics venture. Reports suggest that he is looking to raise $50 million through private equity, which will part-fund this $200 million cargo venture.
According to reports, Mumbai-based investment banking firm, Edelweiss Capital, has been tasked with the responsibility of seeking investors for the 100% Gopinath-owned company. Deccan Cargo is planned as an end-to end express logistics service provider delivering cargo to the door step. The business will include ground logistic services via road and rail similar to that of global giants FedEx and UPS.
Deccan Cargo operations will be supported by a state-of the art integrated IT system designed to ensure delivery of cargo anywhere within 24 hours, and also to help cut operational costs.
Last week Gopinath signed a memorandum of understanding with the Maharashtra Airport Development Company to set up a warehousing facility over 50 acres of land at the BR Ambedkar airport in Nagpur. The facility will require financing of close to $100 million. Located close to the airport, the central warehousing facility will help bring down distribution costs making operations cost effective.
With Nagpur as its hub, Deccan Cargo will service 40 cities across India with 10 Airbus A310 cargo aircraft.
The company will be headed by Jude Fonseka, who has has 21-years of experience with FedEx. Apparently, the new company already has 60 people on its rolls.
