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Allcargo Logistics has initiated a move for an acquisition in the US market.
The company offers less-than-container load (LCL) services to exporters and importers – it does not own container vessels, but provides third-party container spaces by consolidating cargoes from different parties. In other words, LCL cargoes, which weigh lesser than than full-load containers, are put together with other cargoes and shipped to their respective destinations.
“We are currently operating through an agent in the US. But now we are looking at having our own presence there, which would complete our global network,” S. Suryanarayanan, Director (Finance), told Business Line over telephone.
It currently has a network across 89 countries with 189 own offices across the world. Other than in the US, it is present in major global markets, after its acquisition of ECU Line in Europe in 2005-06 and two Hong Kong based entities in 2010. Since then it had made a string of smaller acquisitions in these markets through its overseas subsidiaries.
Suryanarayanan was not willing to set a deadline for the US acquisition, stating that “it could be anytime during the year. We are in the process of identifying the right company.”
It will be looking at a mid-sized company of about Rs 50 crore in the non-vessel owning common carrier segment.
Last fiscal, this business clocked a throughput of 2.84 lakh TEUs of container parcels against 2.75 TEUs in the previous year, registering a three per cent increase.
On Indian operations, Suryanarayan said the company recently completed expansion of its container freight station capacity and would not go in for further expansion in the current fiscal.
Its current CFS capacity is 4.85 lakh TEUs at Chennai, JNPT and Mundra ports. This business involves providing ancillary support for export-import cargoes, such as stuffing, de-stuffing and customs clearance for exporters and importers. This segment clocked a total volume if 2.21 lakh TEUs last fiscal, up nine per cent from 2.45 lakh TEUs in the previous year.
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