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Leap India targets up to ₹500 cr deals

MUMBAI : Asset-pooling firm Leap India, which is preparing for a public listing, plans to invest ₹300-500 crore over the next three years in line with its inorganic growth plans, founder and managing director Sunu Mathew said.

“Just like we acquired Skan Marine, we are planning a slew of acquisitions worth ₹300 crore to ₹500 crore in the next three years,” Mathew said in an interview.

Leap India provides end-to end supply chain assistance to companies. It has 25 warehouses and 22 manufacturing units, as per its website. In February, it acquired Skan Marine, a Mumbai-based forklift rental business for an undisclosed amount. Skan Marine offers rental services for forklift, reach trucks, tow trucks and battery-operated pallet trucks.

“The acquisition has helped mark the company’s presence in the forklift renting segment which will, in turn, help improve the turnover,” Mathew said. Meanwhile, Leap India is gearing up for an initial public offering (IPO). The company plans to file its draft prospectus with the Securities and Exchange Board of India (Sebi) by May and expects to launch the IPO in the September quarter, Mathew said.

Mint reported on 7 November 2022 that Leap India aims to raise nearly ₹1,000 crore through the IPO.

The IPO will comprise a fresh issue of equity shares and an offer for sale, the report said, citing people aware of the development.

Mathew said given the strong consumption story and expectations of growth in overall spends in India, the company expects to grow at 20-30% on year-to-year basis. He also expects most of the growth to come from the company’s pallet pooling or renting business. Some of the major factors driving growth, he said, are steady supply of pallets, cost-effectiveness and tech-enabled management.

Citing a Frost and Sullivan report, Mathew stated that the pallet-pooling system rental market across the globe is expected to grow nearly 4.5-5%. Currently, the company counts Amul, Amazon Pepsi, Exide, Mahindra and Mahindra and Ashok Leyland among its clients.

Further, Mathew pointed out that the automotive components business is expected to see double-digit growth in the coming years.

“In automotive, we are really betting a very big way because we believe that the first change is going to come from that space. So, this year (FY23), we will be doing about ₹30 to 33 crore of turnover. And next year, we are targeting ₹50-55 crore in revenue from the automobile segment”, Mathew said.

According to the company’s latest financials, in FY22, Leap India’s Ebitda (earnings before interest, taxes, depreciation, and amortization) was ₹13.5 crore, with net sales of ₹ 211.34 crore. The company posted a net profit of ₹26.88 crore.

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