One of Canada’s biggest pension funds is growing its exposure to India’s logistics sector.
The Canada Pension Plan Investment Board has invested $115 million in Delhivery Pvt Ltd., one of the country’s largest third-party logistics providers. The business operates in more than 2,000 cities and offers a broad range of supply chain services including parcel transportation, warehousing, freight, reverse logistics, cross-border, and technology services.
“This investment in Delhivery builds on our Fundamental Equities Asia group’s strategy to provide strategic capital to high-quality companies in the region,” said Senior Managing Director and Global Head of Active Equities Deborah Orida, who stressed the importance of supporting the investment opportunities generated by the “continued strong growth of e-commerce.”
The plan invested in Delhivery through its fundamental equities group, which researches and makes long-term investments in Asian corporations. The fund will also have a seat on Delhivery’s board.
“CPPIB has been active on the ground in India for nearly a decade and we continue to pursue opportunities to invest in the country as part of our focus on emerging markets,” said Alain Carrier, the fund’s senior managing director and head of international. He said Delhivery’s reputation “fits well” with its sights on supporting “high-growth businesses.”
The fund’s India-based equity investments were C$9.9 billion ($7.5 billion) as of June 30th. It returned 8.9% in fiscal 2019, growing the fund to $290.9 billion.