Allcargo Logistics lines up Rs 300 crore investment
Allcargo Logistics plans to invest Rs 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 Rs 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 per cent 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 inbound 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.
Source: The Economic Times