The Hindu Business Line : Sical Logistics buying 2 rakes for Rs 25 crore

Chennai April 30 Sical Logistics intends to buy two rakes shortly, for use in its freight train operations. A rake is a train of 45 flat beds, each of which can hold two standard containers. A rake therefore can transport 90 containers.

Each rake will cost a little over Rs 12 crore. It is learnt that the orders might go to either Texmaco of the KK Birla group or Titagarh Wagons Ltd.

Sical Logistics, which is putting up a rail-cum-road terminal and a container freight station at Nagpur, sees running freight trains a logical extension of its logistics business.

According to Mr Karthik Menon, whole-time Director of Sical, the company would buy two more rakes by the end of the year. Its freight trains would run between Chennai and New Delhi, but would also touch Bangalore and other industrial segments along the way.

Capital flow

Sical Logistics recently raised Rs 116.55 crore through a private placement of 52.5 lakh equity shares at Rs 222 a share to IDFC Private Equity Fund-II. Mr Menon told Business Line recently that the company would raise another Rs 116 crore of equity funds within the next two months.

Mr Menon said that following Sical's intention to exit all non-logistics businesses, the company might form a special-purpose vehicleto house its building materials distribution business (the former Tubes and Malleables Ltd, which was merged with Sical a few years ago.) Sical was talking to a few overseas companies, including one from Australia, to sell-off a majority stake in the SPV.

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Sical Logistics buying 2 rakes for Rs 25 crore