Allcargo plans shipping foray

The city-based logistics major Allcargo Global Logistics is planning to enter the shipping segment and offshore oilfield services within next two to three months, a senior company official said.

"We are starting a shipping service, including offshore oil field service soon. Initially, our plan is to start with chartering vessels and gradually we will acquire our own vessels," a senior company official told PTI here but refused to divulge any investment details.

"We believe that the new vertical that we are getting into will increase our revenue margins as there is a lot of scope in this segment," he said, adding the company is not averse to buyouts in these new verticals. Apart from getting into new verticals, the company has also plans to expand its presence in the less-than-container-load (LCL) segment through the inorganic route.

"We are looking for LCL companies with considerable presence here as well as abroad. West Asia and the US are geographies that we are likely to explore," he added.

Allcargo, which is the second largest player in the less-than-container-load segment, is also close to buy stakes in some companies based in China, Hong Kong and Brazil, he said, adding the feasibility study and funding for the acquisitions are being worked out.
    
In April, Allcargo had raised about Rs 100 crore through qualified institutional placements for capital expenditure and to fund acquisitions. At present, it has  Rs 200 crore in cash reserves and have internal accruals of Rs 60 crore, he added.
    
Currently, Allcargo's Mundra CFS has a capacity of 48,000 TEUs (twenty foot equivalent units).It is also planning to develop its existing land bank at Nagpur, Bangalore, Pithampur and Hyderabad to strengthen third-party logistics business and for logistics parks by early 2011.