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Apollo LogiSolutions (ALS), an Apollo International-promoted company, has entered into a joint venture with India Glycols, a listed company, to set up an inland container depot (ICD) at Kashipur in Uttarakhand at an estimated project cost of ₹90 crore.
Captive cargo supply ALS will have 51 per cent stake in the project, while India Glycols will have 49 per cent stake, including the cost of land, which it owns, Raaja Kanwar, Vice-Chairman and Managing Director, Apollo International, told BusinessLine .
The project is expected to be operational by April 2015. Once developed, the terminal will handle cargo, such as containerised liquid, electronics, auto parts, paper products and chemicals. India Glycols has a factory in Kashipur, which will ensure supply of captive cargo.
This will be the first ICD for ALS. Earlier, India Glycols had tied up with another firm – Fourcee Infrastructure, a company which has a container trainer train operating licence – to develop this project, but that joint venture fell apart.
ALS has a container freight station (CFS) in Panvel, near Mumbai, and is developing another one in Katupalli, near the port being developed by L&T.
The company has also entered into a 60:40 joint venture with a German company Feige, which offers contract logistics, warehousing and freight-forwarding business from 30 warehouses across the country that the JV will take on lease. This business closed 2013-14 with $20 million and is expected to close 2014-15 with $40 million.
Rising revenue More recently, ALS also acquired partial stake in logistics firm Clarion Shipping, which will help it get a piece of the growing trade between India-China, India-Africa and India-West Asia, said Kanwar. The sectors the company focuses on are telecom, infrastructure (project cargo such as windmills and renewable energy), pharmaceuticals, FMCG and luxury segment.
ALS closed 2013-14 with a revenue of $150 million, and expects to close 2014-15 with a revenue of $200 million. It also aims to route ₹170-175 crore (approximately $28 million) of equity over the next five-six years, to touch revenue base $1 billion by 2020.
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