Allcargo NSE -2.91 % and TVS Supply Chain Solutions (formerly TVS Logistics) are in initial discussions to acquire the supply chain business of Sical LogisticsNSE 1.30 %, the offshore and multimodal logistics services firm owned by the Coffee Day Group, two people aware of the development told ET.
Container freight hubs of Sical’s subsidiary, SicalMutimodal and Rail Transport, are also up for sale as the coffee chain seeks to sell a range of assets and use the proceeds to repay debt after the unfortunate death of group founder VG Siddhartha. Allcargo and TVS Logistics are also in discussions for the railroad assets, and both deals together could fetch the Coffee Day Group Rs 500-550 crore.
The supply chain solutions division of Sical includes cold chains, warehousing and industry distribution logistics. The division has a fleet of 414 vehicles and warehouse space of 1.2 million square feet.
“Bankers and advisers helping the Coffee Day owners have reached out to TVS Logistics and Allcargo Logistics to sell the logistics operations, and talks are at preliminary stages,” a banking source told ET. The Coffee Day Group currently holds 55.18% in Sical through its group entities .
ICICI SecuritiesNSE 0.66 % is advising Sical, said one of the persons cited above. Executives at Sical, Allcargo, TVS Supply Chain Solutions and investment banks declined to comment.