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Caravel Logistics lines up Rs 150 crore

BS Reporter  |  Chennai 

Pvt Ltd has lined up around Rs 150 crore for acquiring ships, setting up container freight stations and buying rail rakes.

The move is aimed at achieving its target of Rs 1,000 crore turnover by 2015 and becoming a full-fledged logistics provider, said Saju Chacko, managing director,

The company proposes to buy a ship in the next three months and will add another two in the following fiscal, with a capacity of 800-1,000 twenty foot equivalent units (TEUs).

Chacko said Caravel, in order to become an end-to-end logistics service provider, had entered the shipping business by acquiring a ship for around Rs 25 crore, which it raised from Switzerland-based private equity firm BTS Investments last June.

The ship, with a capacity of 585 TEUs has started its maiden voyage from Tuticorin in Tamil Nadu to Dubai via Mundra in Gujarat and Kochi in Kerala.

On the other hand, the first will come up between Chennai and Ennore. The company is planning to invest around Rs 25 crore to set up the on 15 acres of land.

The CFS, which is expected to commence operations in November, would handle 3,000-3,500 TEUs in the first year.

Other CFSs would come up in Tuticorin, Mundra, Ludhiana and Delhi between 2010 and 2013.

On plans to enter the railway business, Chacko said they would launch the first service between Mundra and Ludhiana to cater to Dubai cargo. The service was likely to commence in November this year.

The company is planning to invest around Rs 45 crore to acquire railway rakes. It would also go public once it reaches its target.

The proposed investments will be funded through internal accruals and debt.

“If we require more cash, will think about going for another round of equity,” said Chacko.

First Published: Wed, March 03 2010. 00:10 IST