Reliance buys strategic stake in Deccan 360

Kailash Babar &Saket Sundria . Mumbai

Reliance Industries (RIL) has bought a strategic stake for an undisclosed amount in logistics company, Deccan 360, promoted by Captain G R Gopinath — a move aimed at deriving synergies for its retail business.

RIL will buy over 26% but less than 50% of Deccan 360 through a fresh issue of shares, Gopinath said on Friday. “The money will come into the company. I am not selling any stake. I will continue to run the show at Deccan 360. RIL has invested in the company because I will be leading it. I will continue to run it as the CMD,” Gopinath said.

RIL will get to nominate two directors on the board of Deccan 360, which will have three more directors of its own.

This is the second time that Gopinath has floated a company and managed to get a big-ticket investor for it.

Earlier, he established Indias first low cost airline Air Deccan, which was later bought over by Vijay Mallyas Kingfisher Airlines.

Gopinath though said, “I will make sure this is not going to be another Kingfisher,” adding that the brand will remain Deccan 360.

Proceeds from this strategic sale will be used to fund the expansion plans of Deccan 360, including setting up its hub in Nagpur. NW18