Mumbai, 11 September Coastal container shipping firm Shreyas Shipping & Logistics is eyeing more buyouts of logistic firms in India and abroad, a senior official said.
The company, with provides end-to-end logistics solutions, bought 51 % stake in unlisted freight carrier Haytrans (India) Ltd last week for an undisclosed sum.
“We will continue to look at these kind of businesses in the logistics segment,” Executive Director Anil Devli told Reuters late on Monday.
“We have started talks with some people,” Devli said without giving any details, but said the buyouts would be of either logistics or warehousing firms.
The stake buyout in Haytrans, where the promoters of Shreyas also have a considerable holding, would provide the company a new set of clients.
Devli’s vision of seeing the Shreyas logo on the tail of an aircraft has kicked off with this buyout, as Haytrans has an air freight division. “We are slowing moving there.”
Shreyas, with a fleet of seven ships, has earmarked $30-45 million expenditure for buyouts, ship acquisition and expansion of its logistics business. It plans to add two more ships in the next 12 months.
Last year, the company raised 1.50 billion rupees to fund buyouts of logistics firms in India and abroad.
It is also looking at the possibility of entering oil exploration services.
“We are looking at the feasibility of entering the oil sector,” Devli said adding that a lot of Indian shipping firms have already entered the lucrative hydrocarbon exploration business.
India’s Varun Shipping <VRNS.BO> and Mercator Lines <MRCT.BO> have drawn up plans to enter offshore oil and gas exploration segment.
Shreyas expects to post a 20 % rise in both turnover and net profit in the year to March 2008 due to a rise in volume of trade and on higher freight rates, Devli said.
The company reported a 12 % fall in net profit to 310.6 million rupees in 2006/07 while total income rose 27 % to 1.85 billion rupees.
With the Baltic Exchange’s Dry Freight Index <.BADI>, which gauges the strength of seaborne dry commodities trade, breaking new records since August 22, shipping firms are expected to gain.
“I am exceedingly happy ...There will be a natural transition of bulk to containers,” Devli said.
Shares in the company rose 0.5 % at 102.90 rupees in the Mumbai market. REUTERS