Gati gains on acquisition buzz

Gati is planning to acquire Kausar, a Delhi-based firm with a presence in the cold chain segment.

Kausar, which reported a turnover of Rs 19 crore in FY 2007, is listed on the Delhi Stock Exchange (DSE) but has not witnessed any trading activity in the past few months, reports suggest.

Kausar has a strong presence in the cold chain segment in northern India and specialises in the transportation of meat, pedigree products, dairy products and pharmaceuticals. Kausar has a strong customer base with clients like Hindustan Unilever (HUL), Nestle, Dabur and Amul among others.

At present, Gati does not have any presence in the movement of perishable cargo and this acquisition will mark Gati’s entry into the cold chain space. The move by Gati to enter into the cold chain space comes on the eve of the increased requirements of cold chain facilities by retail giants like Reliance Retail, Bharti Wal-Mart and the Aditya Birla Group.