All­cargo Lo­gis­tics Lines up 300-cr In­vest­ment

The Economic Times - - Companies - Anir­ban.Chowd­hury @times­group.com

Mum­bai: All­cargo Lo­gis­tics plans to in­vest .₹ 150 crore each in CCI In­te­grated Lo­gis­tics and its planned lo­gis­tics park in Jha­j­jar, Haryana, its chief op­er­at­ing of­fi­cer Prakash Tul­siani said on Fri­day. The com­pany last week got a board ap­proval to raise .₹ 300 crore in non-con­vert­ible deben­tures.

On Fe­bru­ary 15 it got an in-prin­ci­ple board ap­proval to buy a ma­jor­ity stake in CCI, a com­pany in freight for­ward­ing and con­tract lo­gis­tics with a spe­cial fo­cus on chem­i­cals.

Ex­actly a month later, All­cargo re­ceived a sim­i­lar nod to set up the project in Jha­j­jar. “We have now gone to the stage of due dili­gence (for CCI). That will fin­ish in a pe­riod of one to one and half months. I have a feel­ing we will end up with an above 60% share­hold­ing," Tul­siani told ET.

“Our freight for­ward­ing and lo­gis­tics busi­ness will now merge into the CCI busi­ness and we will form a new com­pany in which we will hold con­trol­ling stake,” he said.

All­cargo's planned Jha­j­jar fa­cil­ity is ex­pected to be op­er­a­tional by 2018, sub­ject to nec­es­sary reg­u­la­tory ap­provals and rail con­nec­tiv­ity.

It will com­prise of a rail linked pri­vate freight ter­mi­nal ca­ter­ing to rail­way cargo move­ment, a free trade ware­hous­ing zone, a do­mes­tic tar­iff area and other re­lated ac­tiv­i­ties. It will also have the fa­cil­ity to han­dle both in-bound and out­bound con­tract lo­gis­tics ser­vices. "The next phase of growth in the con­tainer freight sta­tion busi­ness comes from the hin­ter­land. Right now, we are only present in Dadri (Ut­tar Pradesh) and Kheda (Gu­jarat) but those are very small fa­cil­i­ties. If we look at the hin­ter­land, what do we find? All of them op­er­ate con­tainer de­pots. None of them op­er­ate any­thing bar­ring con­tainer de­pots. We are not only go­ing to fo­cus on con­tain­ers. We want to get into multi-com­mod­ity and multi-trans­porta­tion for­mats. If there is a need and de­mand, we will also look at liq­uid and Roll On Roll Off (facil­ties de­signed to carry wheeled cargo like cars)," he said.

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