Sical Logistics Ltd, India’s leading provider of integrated multi-modal logistics solutions for bulk and containerized cargo and offshore logistics, has received the Foreign Investment Promotion Board (FIPB) approval, for investment in its newly formed subsidiary, Sical Infra Assets Ltd. The investment by Old Lane Mauritius IV Ltd, an investment vehicle of Old Lane India Opportunities Funds (“Old Lane”), is aimed to fund the growing infrastructure business of the company.

The foreign equity participation by Old Lane is US$ 26 mn, by issue of compulsorily convertible debentures which will be subsequently converted into equity shares of Sical Infra.

Sical Infra was formed to house the company’s asset-heavy, capital-intensive, longer gestation infrastructure based businesses like the Road and Rail terminals at Nagpur, Sical Iron Ore Terminal at Ennore, the Container Rail Project, the Container terminals at Tuticorin and Chennai in joint venture with PSA Singapore as well as Sical Distriparks. The decision to segregate the short cycle service oriented businesses from the longer duration BOT type assets was aimed to crystallize the value of investments made by Sical into its special purpose vehicles (SPVs).

On receiving the FIPB approval, Ashwin Muthiah, Chairman, Sical Logistics said, “This approval is a critical milestone in our efforts to build a balance between the asset heavy infrastructure side and the multi-modal logistics services of Sical. We will be using these funds along with Sical’s own infusion of USD 30 mn to complete the equity funding on all our existent projects which are already in different advanced stages of debt closure. It is our intention to build and deliver on these heavy assets by focusing on good project management and timely completion as they have a gestation of 16-24 months each and will be developed simultaneously. We have the right people skills in place and I envision 2010 being a year of quantum leap in volumes and profits.”

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About Sical

Sical Logistics Ltd is India’s leading integrated multi-modal bulk and containerized logistics solutions provider handling around 22mn tones of bulk cargo as well as over 5,00,000 TEUs of containerized cargo. Headquartered in Chennai in the south of India, Sical (formerly South India Corporation Agencies Limited) is listed on the Mumbai Stock Exchange and the National Stock Exchange.

The services of the company are segmented as:

v Bulk-Stevedoring/ Port terminals/ Customs and agency services/ trucking/ railroad/ warehousing

v Container- Container terminals/ ICDs/CFS

v Offshore- O&M of Platform Supply Vessels/ owning PSV

Sical's delivery network includes an exclusive walk-in berth at Chennai for ships carrying bulk cargo; a container terminal at Tuticorin, 4.5 lakh square feet of storage across over 100 warehouses; owned and regularly contracted fleet of over 2500 transport vehicles, and container freight stations at 4 locations across India. Sical's FY2006-07 revenue was Rs 9.90 billion on Rs 301.9 million equity capital.