IDFC Pvt Equity invests Rs 45cr in DARCL

New Delhi, Mar 12 (UNI) Delhi Assam Roadways Corporation Ltd (DARCL) today said IDFC Private Equity Fund II, a fund managed by IDFC Private Equity has invested Rs 45 crore in DARCL.

Company Chairman and Managing Director K K Agarwal said, ''With the fresh equity infusion and internal accruals, DARCL intends to finance the container train project and ICDs which will give vantage position to the company in terms of better customer services as well as costs.'' The company's freight turnover increased to Rs 580 crore in 2005-06 from Rs 130 crore in 2000-01 and is poised to reach Rs 1000 crore in 2008-09, he added.

IDFC Private Equity Executive Vice President Prakash Karnik said, ''We have looked at the logistics industry for the past few years and this is our first investment in this sector. We are extremely excited to partner with the DARCL.'' The Full Truck Load (FTL) road transportation company has an all India presence and has the ability to mobilise over 1,000 trucks and trailers on a given day.

Its clientele includes Jindal Group, SAIL, BPCL, HPCL, ONGC, BHEL, GAIL, Reliance, Tata Group, Vedanta Group, Aditya Birla Group and other business houses and defence establishments.

The company recently signed a concession agreement with the Indian Railways for operating container trains.

The money raised from IDFC Private Equity will be used to expand the road business and invest in the container train business.

It plans to consolidate its leadership position in the road transportation business to become the largest integrated multimodal transportation company in the country.

Escorts Securities Limited assisted with the transaction.

UNI