Global logistics provider CEVA Logistics has completed its acquisition of Stellar Value Chain (Stellar VCS), an India-based contract logistics with omnichannel fulfilment services in the e-commerce, automotive, food products, consumer, fashion and retail, healthcare and pharmaceuticals market segments.
CEVA acquired a 96% stake in Stellar VCS from an affiliate of private equity firm Warburg Pincus and other shareholders.
The planned acquisition was announced in August, although details such as the cost of the acquisition were not disclosed.
"The acquisition adds to CEVA's existing presence in India, allowing for the delivery of holistic supply chain services to customers across the Asia Pacific region and beyond," CEVA said.
CEVA has been operating in India for more than two decades.
It noted that the acquisition of Stellar boosts its domestic contract logistics and omnichannel fulfilment service, providing CEVA with a presence in 60+ locations and 35 cities across India.
"The deal is part of CEVA's plan to expand and diversify its presence to support the continued growth in domestic consumption, manufacturing and warehousing," it said, adding that the company will welcome approximately 6,000 employees from the former Stellar business.
CEVA noted that the new sites complement CEVA's existing contract logistics and eCommerce portfolio — and extend its scale and scope to strengthen its offerings in the eCommerce, automotive, food products, consumer, fashion and retail, healthcare, and pharmaceuticals market segments.
"We're on the cusp of an exciting new era at CEVA Logistics in India. Our combined culture, capabilities and overall operations will allow us to reach new heights," said Matthieu Friedberg, CEO of CEVA Logistics.
Recent studies estimate that India is on course to become the world's third-largest economy by 2027.
CEVA noted that the demand for third-party logistics (3PL) and warehouses is growing in line with shifts in consumer behaviour and the logistics landscape.
CEVA said Stellar's founder, Anshuman Singh, would continue to lead the legacy Stellar business as part of CEVA's network of logistics across India.
Top 5 global logistics operator
"The acquisition is part of CEVA's journey to becoming a Top 5 global logistics operator," said Paras Rawal, managing director of India Subcontinent. "But it's not just about economics. The new facilities will create efficiencies of scale, which will allow CEVA to optimize its business operations."
Rawal added that the acquisition enhances CEVA's contract logistics and, with advancements in 3PL, expands the company's scope in warehousing and fulfilment services.
"In alignment with our well-established air and ocean business, we will strategically utilize our capabilities to provide a full suite of supply chain logistics solutions for our current and future customers," the managing director for India Subcontinent further said.