CJ Logistics Expands Logistics in India... Acquires Additional 6% Stake in Subsidiary 'DARCL'

【Financial News New Delhi (India)·Hanoi (Vietnam)=Pragya Awasthi Correspondent·Kim Jun-seok Reporter】 CJ Logistics has acquired an additional 6% stake in its Indian subsidiary CJ DARCL, increasing its total stake to 56%. This stake acquisition amounts to 32 million dollars (approximately 43.8 billion won) and is intended to strengthen CJ DARCL's capital base and lay the foundation for executing next-generation growth strategies. CJ DARCL is accelerating its efforts to penetrate the Indian market, including pursuing a listing on the Indian stock exchange from 2023.

CJ Logistics stated on the 27th, "This investment was made in the form of a combination of newly issued shares and the purchase of existing shareholder stakes, and it will be strategically utilized for the nationwide infrastructure expansion and digital transformation of DARCL." With this, CJ DARCL plans to accelerate the expansion of nationwide multimodal logistics infrastructure, advanced logistics terminals, smart warehouses, digital supply chain solutions, and the establishment of alternative fuel-based transportation platforms.

Previously, CJ Logistics entered the Indian market by acquiring a 50% stake in the Indian logistics company DARCL in 2017, and has since co-operated the entity under the rebranded name 'DARCL'. This stake expansion will lead to strengthened control over the Indian entity. The remaining 44% stake is still held by the founding family and affiliates of DARCL.

Kim Kwon-woong, Head of CJ Logistics Asia-Pacific (APAC), emphasized, "India stands at the inflection point of global logistics industry changes and is a key hub in CJ Logistics' global strategy," adding, "Through cooperation with CJ DARCL, we will innovate India's supply chain and build a high-efficiency logistics ecosystem."

Meanwhile, this stake acquisition is part of CJ Logistics' strategy to strengthen its global mergers and acquisitions (M&A) and is expected to create synergy with the expansion of CJ Group's global logistics network, in line with the National Logistics Policy (NLP) led by the Indian government. NLP aims to enhance logistics efficiency to match the status of India as the world's 5th largest economy, and includes △Integration of Digital Systems (IDS) △Unified Logistics Interface Platform (ULIP) △Ease of Logistics (ELOG) △System Improvement Group·Ecosystem (SIG).