CCI gives its nod to the acquisition of Avana TFPL by Unifeeder

Introduction

The Competition Commission of India (CCI) supports the procurement of Avana Logistek Limited, Transworld Feeders Private Limited and Transworld Feeders FZCO by Unifeeder ISC FZCO. The proposed acquisition visualises obtaining of stake in Avana Logistek Ltd. (Avana), Transworld Feeders Private Limited(TFPL) and Transworld Feeders FZCO by Unifeeder ISC FZCO (Unifeeder).

Unifeeder is in a roundabout way held by DPW, a shaping piece of DPW group. In India, Unifeeder is available through its subsidiaries Feedertech Pte. Ltd. (Feedertech) and Perma Transportation Line Pte. Limited. Feedertech provides EXIM feeder administrations and Perma Transportation Line Pte. Restricted gives EXIM non-vessel owning normal transporter (NVOCC) administrations.

The business of Avana involves multimodal homegrown coastal administrations and NVOCC arrangements. In present circumstances, TFPL isn't occupied with any business exercises in India. In any case, under the proposed transaction TFPL would get EXIM feeder delivering business of Shreyas Shipping and Logistics Ltd.

Unifeeder is in an indirect ownership way held by DPW, shaping the piece of DPW Group of Industries. In India, Unifeeder is available through its auxiliaries, Feedertech Pte. Ltd. (Feedertech) and Perma Delivery Line Pte. Ltd. Feedertech gives EXIM feeder administrations and Perma Transportation Line Pte. Restricted gives EXIM non-vessel possessing normal transporter (NVOCC) administrations.

In regards to the proposed transaction, it is crucial to observe that the current acquisition of the entire range of Avana industries including Avana Logisteck Ltd., Transworld Feeders Pvt. Ltd. and Transworld Feeders FZCO by Unifeeder ISC FZCO opens up the scope for Unifeeder ISC FZCO as it will have direct target business and administrative function to carry on now. The previous presence of Unifeeder under DPW Group is not substantial enough to have a proper business administration and to compete for a target market share in the Indian industrial arena. But after the inclusion of Unifeeder as an exclusive market share competent the regime of dominant market shareholdings of the current market leaders will be in serious concern and watch out now.

Conclusion

The green flagging of the Competition Commission of India for the acquisition and procurement of Avana Logisteck Ltd., Transworld Feeders Pvt. Ltd. and Transworld Feeders FZCO by Unifeeder ISC FZCO is of significant value and consideration in the run-up to market shareholding. The current transaction will also have the influence to subjugate the market determinants.

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