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Arshiya International to expand logistics offerings
Last Updated: 2008-02-26 12:12:55
Mumbai: Logistics service firm Arshiya International Ltd is expanding its offerings and has signed an initial pact with a US-based cold chain logistics provider for a joint venture in India, its top official said.
The company, previously known as IID Forgings Ltd, would be a majority holder in the cold chain services venture, helping Arshiya expand its services to retailers, chairman and chief executive officer Ajay Mittal said.
The company's other service offerings include software solutions of supply chain management, freight forwarding as well as project logistics. It is also setting up free trade zones in the Middle East and India.
"There is a big dearth of logistics and supply chain players in these two areas," Mittal said. During the first phase of its infrastructure expansion plan, Arshiya is building a zone in Sohar, Oman, and adding a fleet of 150 trucks. In India, it is building a zone near Mumbai and another one near Delhi.
Both the zones would be connected to the rail network. Arshiya applied to the government to operate rail freight services across India in January and plans to have 11 rakes during the first phase expected to be completed by 2010, he said.
The phase, costing about Rs 1800 crore, would be funded through the Rs 350 crore raised from a qualified institutional placement in December 2007, Rs 100 crore raised in January 2007 through a private placement. The rest would be debt and internal accruals.
The entire project cost, which includes three more free trade zones in India and at least 30 sub zones, is likely to go up to Rs 3000 crore to Rs 4000 crore and would be completed by 2012, he said.
Arshiya has also signed an initial agreement with a supply chain company for outsourcing logistics documentation. The venture would allow Arshiya to do documentation for other logistics players in the retail sector, he said.
In the year to March 2007, the company reported a net profit of Rs 5.29 crore on net sales of Rs 90 crore.
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