The liquid storage tank (LST) business at terminals in Jawaharlal Nehru Port (JNP), Cochin and Goa will be sold to CLPL on a slump sale basis. The rail logistics business at Daund, currently operated by material subsidiary Infrastructure Logistic Systems Ltd (ILSL), will be transferred to ILSL Rail Logistics Private Ltd, a wholly owned subsidiary of ILSL, followed by the sale of ILSL’s entire shareholding in the subsidiary to CLPL.
CLPL is an Indian company engaged in bulk liquid and gas storage and logistics. An entity owned by funds and vehicles managed and advised by KKR has entered into definitive documents to invest in CLPL. Ganesh Benzoplast said CLPL does not belong to its promoter, promoter group or group companies.
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The definitive documents were executed on September 29. Completion is subject to conditions precedent, including approvals from shareholders and regulatory authorities. The transaction is expected to take place in tranches over the next 18–24 months.
The liquid storage tank undertaking contributed ₹161.65 crore, or 39.29%, of Ganesh Benzoplast’s consolidated revenue in FY26, with a net worth of ₹257.79 crore, or 41.72%. The rail logistics undertaking contributed ₹27.67 crore, or 6.73%, of consolidated revenue, with a net worth of ₹19.63 crore, or 3.18%, during FY26.
The sale of the liquid storage tank business by Ganesh Benzoplast to CLPL and the sale of ILSL’s shareholding in ILSL Rail Logistics to CLPL are not related-party transactions. The transfer of the rail logistics undertaking by ILSL to ILSL Rail Logistics is a related-party transaction and will be carried out on an arm’s-length basis.
The proposed slump sales are being undertaken outside a scheme of arrangement. The company said the transactions fall within the scope of Section 180(1)(a) of the Companies Act, 2013 and Regulation 37A of the Securities and Exchange Board of India (SEBI) Listing Regulations, as applicable. Shareholder approval will be sought through the postal ballot process.
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₹280 crore EPC opportunity
As part of the transaction, CLPL has entered into definitive documents to engage Ganesh Benzoplast for engineering, procurement and construction (EPC) work related to the expansion, construction and building of pipelines and tanks at the JNP facility.
The EPC services are expected to generate additional revenue of approximately ₹280 crore, excluding taxes, for Ganesh Benzoplast over the next 18–24 months.
The company said it will use the sale proceeds to expand its capacity for manufacturing chemicals, food preservatives and lube oil additives, chemical trading and higher-value EPC projects. Ganesh Benzoplast will also consider corporate actions, including a buyback, in accordance with applicable regulatory provisions.
Company rationale
Ganesh Benzoplast’s management said the sale is intended to unlock value for the company’s stakeholders. ILSL provides end-to-end logistics solutions for transportation of liquid cargo from ports and inland locations to customers. ILSL Rail Logistics is proposed to operate the rail logistics business at Daund following the internal transfer and subsequent sale of the subsidiary to CLPL.
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Rishi Pilani, chairman and managing director of GBL, said, “GBL has built a strong liquid storage and logistics business over several decades, and we believe Cisternina and KKR are well positioned to support its next phase of growth.
The management is focused on growing and expanding the chemical business by adding new product lines and increasing the scale of the EPC business. We would like to thank our shareholders for their continued support in helping us build the business to this scale.”
Shares of Ganesh Benzoplast Ltd ended at ₹137.00, down by ₹0.050, or 0.036%, on the BSE.