Gati eyes Rs 2,500 cr turnover by 2014

Hyderabad-based cargo and logistics major Gati Limited is targeting Rs 2,500 crore turnover by 2014.

“We will implement a new ‘Go to market’ strategy to achieve this turnover through organic growth and by acquisition of international divisions, mainly in China and Asia Pacific regions,” Mahendra Agarwal, managing director and chief executive officer, Gati Limited, told mediapersons here on Wednesday.

The company would focus on the supply chain division and be a solution provider, from purely being distributors.

It would de-merge the shipping division into a wholly owned subsidiary, to be called GatiShips. “This will allow us to focus our internal investment efforts on the core segments of express distribution and supply chain, with a special focus on cold chain,” he said.

 

For supply chain and cold chain, it would form a new division — Gati RedSun. Under Redsun, it would offer cold chain solutions including temperature sensitive storage and product life cycle management.

The company witnessed over three-fold increase in its net profit to Rs 4.89 crore for the fourth quarter, as compared with Rs 1.44 crore during the same period last year.

Total income stood at Rs 208.47 crore, as against Rs 158.36 crore in the corresponding quarter a year ago, reflecting a growth of 31.6 per cent. The company has announced a 20 per cent dividend.