Logistics services provider Gati has inked a joint venture with a Japanese logistics player, Kintetsu World Express (KWE).
In this joint venture, the external distribution business of Gati would be transferred to a subsidiary, where KWE will hold 30% stake and 70% will be held by Gati, Mahindra Agarwal, managing director and chief executive officer, Gati told CNBC-TV18.
Gati would be transferring Rs 330 crore of debt into the subsidiary. Post this transfer, the company would be left with Rs 130 crore debt on its books. "It will significantly deleverage the company and improve the profitability," he added.
KWE would invest Rs 277 crore in this joint venture.
Below is the edited transcript of Agarwal