Gati Ltd. has sold a 40 percent stake in its shipping subsidiary, Gati Ship Pvt. Ltd., to a strategic partner for Rs. 8 crore (about $1.5 million).
“The deal will help drive profitability,” the Hyderabad-based express distribution and supply chain solutions company said, without disclosing the name of the strategic partner.
Gati Ship, which recently signed an agreement with Dubai-based International Shipping and Logistics FZE to jointly launch a coastal container service from Gujarat to Kerala, currently operates two cargo ships.
Gati in February last year formed a joint venture with Japanese forwarder Kintetsu World Express as part of its worldwide expansion strategy. KWE had invested approximately $50 million for a 30 percent stake in the Indian company, named Gati-Kintetsu Express Pvt. Ltd.