CEVA Logistics announced that it has signed an agreement to acquire 96% of Mumbai-based Stellar Value Chain Solutions (Stellar VCS) from an affiliate of private equity firm Warburg Pincus and other shareholders.
Started in 2016, Stellar Value Chain Solutions is a local player in contract logistics with omnichannel fulfilment services in the e-commerce, automotive, food products, consumer, fashion and retail, healthcare and pharmaceuticals market segments.
In a statement, CEVA said Anshuman Singh — who started Stellar Value Chain Solutions — will continue to drive the business following the acquisition.
Diversifying India presence
"CEVA will acquire approximately 7,700,000 square feet of space across more than 70 facilities in 21 cities across India. In addition, CEVA will inherit the Stellar workforce of nearly 8,000 full-time and temporary employees who have strong expertise and relationships in India," CEVA said in the announcement.
"The Stellar acquisition will help CEVA diversify its presence in India, boosting its local workforce, assets, customer roster and capabilities. The deal strengthens CEVA's strategy to provide its customers with end-to-end supply chain solutions," it added.
CEVA Logistics is currently present in 75 locations across 35 cities in India, with approximately 2,700,000 square feet of warehouse space.
It said that with the acquisition, CEVA Logistics would become a much stronger player in Indian contract logistics, offering its new customers global expertise and increased operational efficiency and innovation.
"In addition to India, the acquisition complements recent growth in CEVA's contract logistics business elsewhere in the Asia Pacific region. The deal is also expected to benefit CEVA's freight management and customs business in the region," the French global logistics and supply chain company said.
CEVA noted that with new manufacturing trends and supply chain routes developing, its global network and wide range of logistics solutions will provide its APAC clients with the agility needed to navigate changing market conditions.
Top 5 global logistics player
"With the addition of Stellar VCS, we will continue our strategic growth with the goal of becoming a Top 5 global logistics player. We are expanding into more key market segments and boosting our presence in this strategic country," said Mathieu Friedberg, chief executive officer of CEVA Logistics.
"Stellar has an important network of contract logistics facilities across India and a top roster of customers. Bringing on their expertise and footprint in India is a major step forward for CEVA Logistics," he added.
For his part, Anshuman Singh, founder of Stellar VCS, noted the strong network of the company across India.
"I look forward excitedly to the future with CEVA, further supporting our commitment to our customers and allowing them to benefit from CEVA's global capabilities with our knowledge of India," he added, noting that the shared values of our Stellar associates and those of the CEVA Logistics team will allow for quick integration and new, global opportunities for our associates.
