Allcargo Gati Ltd
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BSE Code:
532345
NSE Code:
GATI
Business Profile
Business Profile
Gati is an integrated logistics solutions provider. The company was incorporated on April 25, 1995 and got its current name on Oct. 24, 2000.
The company offers distribution solutions through Gati Express, Gati Priority, Gati Coast to Coast, IC-Zipp, and Gati Saver. It offers logistics solutions with warehousing of over 600,000 sq. ft. space; and supply chain management where it acts as analyst, consultant and SCM partner to provide integrated logistics solutions. It has rail, surface, and air transit centers across the country covering over 320,000 Km daily. The company has over 2,000 vehicles and reaches out to 594 districts. It runs a cargo train between Mumbai and Kolkata and has a strategic alliance with Indian Airlines for joint promotion of small cargo. The company also deals in petrol and diesel business along with other motor parts and lubricants through its fuel stations.
GATI has ventured into the mass retail market and opened Cafe Deliver in Hyderabad and Pune. It is to open 1,500 customer convenient centers (3Cs) across India by the end of 2007. GATI is to set up hi-tech warehousing and distribution facilities in 23 locations across the country.
Recent awards include Best Logistics Partner by HCL Infosystems and Consumer SuperBrand status in the logistics category for 2006-2007.
GATI has branches in Singapore, Nepal and Sri Lanka and nodal centers in Hong Kong and China. The shipping division GATI Coast-to-Coast operates through two ships on the Port Blair and Chennai sector and diversified to Yangon port. The company has a comprehensive memorandum of understanding (MoU) with China Railway Express International Logistics (CREIL) for rail and road cargo and package delivery. The company is to implement global positioning systems to track vehicle movements.
The registered office of the company is at 1-7-293, Mahatma Gandhi Road, Secunderabad-500003.
Financials
The company disclosed a substantial drop in standalone net profit for the quarter ended December 2008. During the quarter, the profit of the company declined 98.88% to Rs 1.40 million from Rs 124.90 million in the same quarter previous year. Net sales for the quarter rose 19.69% to Rs 1,610.20 million, while total income for the quarter rose 18.84% to Rs 1,610.20 million, when compared with the prior year period. It reported earnings of Rs 0.06 a share during the quarter, registering 96.59% decline over prior year period.
Recent Developments
01-APR-09
The company acquired 26.01% outstanding equity of Kausar India on Mar. 31, 2009 through open offer reverse book building process. The total holding of the company is 99.73% as on date due to above acquisition.
09-FEB-09
The company Coast to Coast, the shipping division of Gati, launched its first custom built ship- MV Gati Pride.
Future Plans
Gati will open 1,500 customer convenient centres (3Cs) across India by the end of 2007. The 3Cs, to be operated mainly through partnership model, will enable the company to be close to mass market. Apart from this, Gati would be setting up hi-tech warehousing and distribution facilities in 23 locations across the country. The company was also planning to implement global positioning systems to track vehicle movements. Gati has recently undergone a corporate transformation in tune to capture the global trends. As part of the Rs 80 million re-branding exercise, the company has adopted a new logo and catchline, Ahead in Reach.
The company was closely looking at creating the platform to cater to the B2C market segment by leveraging the trend of click and buy in India.