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CSL Group to triple revenue, seeks strategic partnership

Press Trust of India  |  Thiruvananthapuram 

: Consolidated Shipping Line (CSL Group), a leading third-party with an exposure to the Indian defence sector, has projected tripling of its revenue from the current Rs 70 crore by 2021.

CSL is also seeking a strategic partnership involving an investment of up to Rs 60 crore through equity placement, a CSL press release said.

The group has drawn up plans to boost its market share in defence projects by five times, and technology and improve profitability by optimizing costs.

With the strategic partnership, CSL said it aims to leverage its existing platform to bid for larger project contracts that are five times the size of its current contracts.

High value government/PSU contracts require larger reserves - of up to Rs 20 crore - and credit cycles of up to 6 months, but they generate higher margins of up to 30 per cent.

"spends 13-17 per cent of its GDP on logistics, nearly double the ratio in developed countries.

CSL has spent close to $ 1 million to strengthen infrastructure over the last three years.

The company is poised to execute on market needs, based on its capabilities in warehousing, technology-enabled solutions, logistical parks and transportation strengths", according to Ajai Joseph, CSL

With the group targetting revenues of over Rs 190 crore by 2021, the company has chalked out plans to increase local presence in all key global locations, including the UK, Europe, Africa, and in 2019 through channel partners and by recruiting international route development managers, the release said.

Plans are also in place to establish offices in Africa, and to invest in

CSL has achieved a significant share of the Indian defence logistics requirements which now contributes over 12 per cent of CSL revenues.

CSL has focused strongly on Indian military contracts over the past two years and is well positioned to bid for more contracts, company officials said.

On the technology front, CSL said it plans to grow its 200 per cent before 2020 and build a centralized market place for CSL's global and user groups in the industry this year itself.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sat, February 09 2019. 17:50 IST