/prbuzz/ March 15, 2007, Chennai, India: Sical Logistics Limited (Sical) announced today it proposes to become a pure play integrated logistics player by de-merging and hiving off the non-logistics businesses in its fold. Sical also announced that IDFC Private Equity Fund II, a fund managed by IDFC Private Equity has offered to invest Rs.1.1 billion in the logistics business through an investment in the equity shares of Sical.

Sical to become a pure play integrated logistics player

In its past communications with shareholders, Sical had articulated its intention to position itself as a pure play integrated logistics provider. The Company is taking the necessary steps to bring this to a logical conclusion and is now in the final stages of divesting its non-logistics businesses.

As part of this process, Sical proposes to de-merge, subject to required regulatory approvals, the non-logistics businesses comprising of trading undertakings, services undertaking and coffee plantations as per the de-merger scheme approved by the board. The ratio for issue of shares upon de-merger has been endorsed by Ernst & Young Private Ltd.

Additionally, Sical is in the process of hiving off some of the other non-core businesses including Palm Oil, Refractory, Auto, Drums, Agri-Bio Products, Specialty Chemicals and Flexible shafts. Buyers have been identified and relevant due diligence exercises are currently in the last stages. It is expected that a significant portion of the hive off exercise will be completed within FY 2007.

Equity infusion from leading infrastructure focused private equity fund

Sical also announced that IDFC Private Equity Fund II, a fund managed by IDFC Private Equity has offered to invest Rs.1.1 billion in the logistics business through an investment in the equity shares of Sical, the leading integrated logistics player. The proposed investment would be through a preferential issues of equity shares, subject to receiving all relevant regulatory approvals and executing suitable agreements. SSKI Corporate Finance Private Limited was the sole advisor to Sical for the fund raising exercise.

Mr. Ashwin Muthiah, Vice Chairman, said, “We have grown from a small trading company to the largest bulk cargo handling company in the last 50 years. Over the last decade, we have invested a lot of time, money and effort towards becoming an integrated logistics player. We have in the recent past won a lot of concessions which will help us become the largest third party logistics player in the country. I strongly believe that there is still a lot of headroom in this sector and that our challenges are people and capital. While having consciously inducted a strong professional team, we were looking for an equity partner who understood our business well and had the capability to help us achieve our ambitious growth plan. We are pleased to have the largest infrastructure private equity investor in India as our partner in growth.”

Mr. Luis Miranda, President & CEO, IDFC Private Equity remarked, “We are extremely happy to partner with Sical, the leading bulk logistics company in the country. We are excited about the growth plans of the company and look forward to partnering with them in achieving their ambitions. The company has highly motivated professionals at the helm of affairs and has been expanding its management team to build a world class business. As the largest Private Equity Investor in Indian Ports, Airports and Roads, investments in leading logistics companies was our next logical step and we are glad to partner with a leading company in this sector. ”

About Sical Logistics Limited (Sical): Sical was incorporated as a private limited company on 6 May 1955 by the late Dr. M.A. Chidambaram and his son Dr. A.C. Muthiah. Mr. Ashwin C. Muthiah is the Vice Chairman of Sical Logistics Limited. Sical is a leading integrated third party logistics provider with services spanning inland logistics, port logistics, container logistics and offshore logistics. The Company has operations in all the major ports in India, including Chennai, JNPT/Mumbai, Tuticorin, Visakhapatnam, Kandla, Haldia, Paradip, Goa etc. Sical also owns and manages the dedicated coal terminal at Ennore port as well as the Container Terminal [in a joint venture with the Port of Singapore Authority (PSA)] at Tuticorin port . Additionally, Sical has recently won concessions for the Ennore Iron Ore Terminal, Chennai Container Terminal (in joint venture with PSA), MIHAN rail and road terminals in Nagpur and Container Train Licence (Category I) from the Ministry of Railways.

About IDFC Private Equity (IDFC PE): IDFC PE is the leading private equity investor in infrastructure in India. It manages funds of Rs. 28,500 million (US$ 630 million). Other investments of IDFC PE include GMR Infrastructure (partially exited), Gujarat State Petronet (partially exited), Chalet Hotels, Hotel Leelaventures (exited), Delhi International Airport, L&T Infrastructure Developers, Manipal Health Systems, Gujarat Pipavav Port, Krishna Godavari Gas Network, Delhi Assam Roadways and Quipo.

For more details please contact:

Mr. Karthik Menon
Vice President – Finance & Strategy
Sical Logistics Ltd
Ph no: +91 44 22351014
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Mr. Luis Miranda,
President & CEO
IDFC Private Equity
Ph no: +91 22 22020748
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Ms Samantha Unnikrishnan
Ogilvy Public Relations Worldwide
Ph no: +91 44 44344326
Mobile: +91 98402 8408
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Mr. Hemant Batra
Adfactors Public Relations
Ph no: +91 22 2281 3565,
Mobile: +91 98203 25109