Ganesh Benzoplast Signs ₹1,154 Crore Divestment Deal
Ganesh Benzoplast has signed definitive agreements to divest its liquid-storage tank and railway-logistics businesses to Cisternina Logistics for an aggregate consideration of ₹1,154 crore.
The transaction represents a major restructuring of Ganesh Benzoplast's business portfolio, transferring infrastructure assets that have historically formed a significant part of the company's operations.
The agreements were executed on September 29, 2026.
Completion remains subject to regulatory and shareholder approvals as well as other conditions specified in the transaction documents.
The deal is expected to be completed in tranches over the next 18 to 24 months.
Liquid-Storage Assets at Three Major Ports Included
Ganesh Benzoplast will sell its liquid-storage tank undertaking at terminals located at Jawaharlal Nehru Port, Goa Port and Cochin Port.
The assets will be transferred to Cisternina Logistics on a slump-sale basis.
Ganesh Benzoplast has developed a substantial presence in India's liquid-storage infrastructure over several decades, particularly around strategically important port locations.
The storage platform has approximately 500,000 kilolitres of operating and under-construction capacity across JNPT, Cochin and Goa.
These facilities serve industries requiring storage and handling of bulk liquids, including energy, chemicals and edible oils.
Daund Rail-Logistics Business Also Part of Transaction
The deal also includes Ganesh Benzoplast's rail-logistics business situated at Daund.
The railway operation is currently housed within Infrastructure Logistic Systems Limited, a material subsidiary of Ganesh Benzoplast.
Under the proposed structure, the rail-logistics undertaking will first be transferred to ILSL Rail Logistics Private Limited, a wholly owned subsidiary of Infrastructure Logistic Systems.
Infrastructure Logistic Systems will subsequently sell its entire shareholding in ILSL Rail Logistics to Cisternina Logistics.
The structure will enable Cisternina to combine port-based liquid-storage infrastructure with inland rail-logistics capabilities.
KKR to Take Majority Investment in Cisternina Logistics
Cisternina Logistics is an India-focused bulk liquid and gas storage and logistics platform established in 2024.
Funds managed and advised by global investment firm KKR have entered into definitive agreements to make a majority investment in the company.
KKR's investment is intended to support Cisternina's acquisition of Ganesh Benzoplast's liquid-storage and rail businesses and provide capital for further expansion.
The Ganesh Benzoplast assets are expected to become the anchor operations for Cisternina's planned pan-India liquid and gas storage platform.
Cisternina was founded by infrastructure professionals Amit Saboo, Kartik Deuskar and Puneet Kedia.
KKR Sees Opportunity in India's Liquid-Logistics Market
KKR plans to support Cisternina through its Asia-Pacific infrastructure strategy.
The platform intends to grow through a combination of acquisitions, brownfield expansion and greenfield development.
It also plans investments in management capabilities, governance, operating systems and safety standards.
India's bulk-liquid logistics market serves sectors including energy, chemicals, edible oils and other industrial products requiring specialised storage and transportation infrastructure.
With roughly 95% of India's external trade by volume moving through coastal infrastructure, ports and associated storage facilities remain important components of the country's logistics network.
Divested Businesses Represent Significant Share of GBL Revenue
The businesses being sold represent a substantial portion of Ganesh Benzoplast's consolidated operations.
During FY26, the liquid-storage tank undertaking generated revenue of approximately ₹161.65 crore, equivalent to 39.29% of consolidated revenue.
The undertaking had a net worth of approximately ₹257.79 crore, representing 41.72% of Ganesh Benzoplast's consolidated net worth.
The rail-logistics undertaking generated approximately ₹27.67 crore in revenue during FY26, equivalent to 6.73% of consolidated revenue.
Its net worth stood at approximately ₹19.63 crore, representing 3.18% of consolidated net worth.
Together, the divested businesses therefore accounted for roughly 46% of Ganesh Benzoplast's FY26 consolidated revenue.
Ganesh Benzoplast to Focus More Heavily on Chemicals
Following the divestment, Ganesh Benzoplast intends to direct greater resources toward its chemicals operations.
The company plans to use transaction proceeds to increase manufacturing capacity across chemicals, food preservatives and lube-oil additives.
It also intends to expand its chemical-trading activities.
The strategy represents a significant shift in capital allocation as the company monetises mature infrastructure assets and redeploys capital toward manufacturing and engineering businesses.
Ganesh Benzoplast plans to add new product lines as part of this expansion.
EPC Business Set for Expansion
Engineering, procurement and construction is another area targeted for growth following the transaction.
Ganesh Benzoplast plans to use part of the proceeds to execute higher-value EPC projects.
The relationship with Cisternina will also continue after the asset sale.
Cisternina has entered into definitive documents to engage Ganesh Benzoplast for EPC services relating to expansion, construction and the development of pipelines and tanks at the Jawaharlal Nehru Port facility.
These EPC services are expected to generate approximately ₹280 crore of additional revenue for Ganesh Benzoplast over the next 18 to 24 months, excluding taxes.
The arrangement means Ganesh Benzoplast can continue participating economically in the expansion of infrastructure it is divesting, but through an EPC-services model rather than asset ownership.
Ganesh Benzoplast May Consider Share Buyback
The company has also indicated that it will consider measures aimed at enhancing shareholder value following the transaction.
These could include a share buyback, subject to applicable regulatory requirements.
A buyback would allow the company to return part of its available capital to shareholders by purchasing outstanding shares.
However, any such action would require separate corporate approvals and compliance with regulatory provisions.
The final allocation of transaction proceeds will therefore depend on the company's growth requirements, balance-sheet strategy and future corporate decisions.
Deal Expected to Close in Multiple Tranches
The ₹1,154 crore transaction will not necessarily be completed immediately.
Ganesh Benzoplast expects the divestment to occur in tranches over an 18-to-24-month period.
The transaction remains subject to conditions precedent, including required shareholder and regulatory approvals.
The liquid-storage sale and Cisternina's acquisition of the rail-logistics company are not related-party transactions.
The internal transfer of the rail-logistics undertaking from Infrastructure Logistic Systems to ILSL Rail Logistics is a related-party transaction and is expected to be conducted on an arm's-length basis.
Cisternina Plans Pan-India Infrastructure Platform
For Cisternina, the acquisition represents the foundation of a much broader infrastructure strategy.
The company intends to develop a nationwide network serving energy, chemical, bulk-liquid and edible-oil customers.
Beyond acquisitions, Cisternina plans to develop new storage infrastructure and expand existing assets.
The company has also pursued opportunities at ports including Chennai, Goa and Cochin as it works toward creating a multi-location platform.
KKR's capital and infrastructure experience could provide Cisternina with the resources required to consolidate a market that remains relatively fragmented.
Transaction Reshapes Ganesh Benzoplast's Business Profile
The sale represents more than a conventional asset monetisation for Ganesh Benzoplast because the divested operations contribute a substantial portion of the company's existing revenue and net worth.
Once completed, the company's business mix will become more heavily concentrated around chemicals and EPC activities.
At the same time, the ₹1,154 crore consideration provides significant capital that can be deployed toward expansion and potential shareholder returns.
The separate ₹280 crore EPC opportunity with Cisternina also provides Ganesh Benzoplast with a transitional revenue opportunity as the buyer expands the acquired infrastructure.
Conclusion
Ganesh Benzoplast's ₹1,154 crore agreement with KKR-backed Cisternina Logistics marks a major strategic restructuring for the company.
The transaction covers liquid-storage operations at Jawaharlal Nehru Port, Goa and Cochin along with the Daund rail-logistics business and is expected to close in tranches over the next 18 to 24 months.
Cisternina plans to use the acquired businesses as anchor assets for a larger pan-India bulk liquid and gas storage and logistics platform backed by KKR.
For Ganesh Benzoplast, the divestment releases capital for expansion in chemicals, food preservatives, lube-oil additives and higher-value EPC projects, while an additional EPC arrangement with Cisternina is expected to generate approximately ₹280 crore of revenue over the coming 18 to 24 months.