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Allcargo Global eyes acquisitions in India, east Asia

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Date: 07/02/2011
Source: http://www.economictimes.indiatimes.com

 

Allcargo  Global Logistics is scouting for acquisitions in the fast growing markets of India and east Asia , after taking stakes in a couple of Hong Kong-based logistics firms last year, as the Indian firm looks for strategic fits to its container load and multi-modal transport operations .

Allcargo is a market leader in the less-than-container-load (LCL) segment -- shipments where cargo is insufficient either in weight or quantity for standard containers.

"In our MTO and LCL segment we are looking overseas where we believe it would straightaway add either in terms of strategy or marketshare," Allcargo group Chief Financial Officer S. Suryanarayanan told Reuters in an interview.

"We are looking more at the far east because that is where the growth story is happening. In India too, we are looking at some acquisitions, they will all be in the verticals that we are in," Suryanarayanan said over the weekend.

The company had raised about 1 billion rupees last April through a share sale to institutions for future acquisitions and general capex.

In October last year, Allcargo, through a subsidiary, had acquired business rights and controlling stake in Hong Kong-based firm engaged in NVOCC (Non Vessel Owning Common Carrier) business in China and other parts of east Asia.

Allcargo will not need to raise further funds for the planned acquisitions as the firm has roughly 3.6 billion rupees in cash reserves and funds from operations, he said.

"So if an acquisition comes with a strategic fit and the price is right we have enough money to go ahead," he said

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