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Business News/ Companies / Gopinath Pillai steps down as Gateway Distriparks chairman
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Gopinath Pillai steps down as Gateway Distriparks chairman

Co-founder Prem Kishan Gupta named new chairman; firm plans foray into e-commerce and coastal shipping

Gopinath Pillai will continue to be a director at the subsidiaries of Gateway Distriparks for now. Premium
Gopinath Pillai will continue to be a director at the subsidiaries of Gateway Distriparks for now.

Mumbai: Gateway Distriparks Ltd’s founder Gopinath Pillai has stepped down from his role as chairman after 19 years, even as the logistics company plans to enter into new businesses, including e-commerce and coastal shipping.

The company has named co-founder Prem Kishan Gupta, who has been the managing director from the start of the company, as the new chairman.

“It was momentous journey and I am very much satisfied to build Gateway Distriparks to this scale," said Pillai, who is also chairman of the Singapore-based think-tank Institute of South Asian Studies (ISAS) and an ambassador-at-large for the Singapore-state’s government.

Pillai, 78, has plans to focus on other business interests in India and Singapore.

Promoted by Newsprint Trading & Sales Corp., Windmill International Pvt. Ltd and Parameswara Holdings Ltd as an Indo-Singapore joint venture, Gateway Distriparks was set up in 1994 to undertake the business of warehousing, handling and clearing of export cargo in containerised form at Navi Mumbai.

Gateway Distriparks has interests in container freight stations (CFS), inland container depots, logistics and cold chain storage (through recently-listed Snowman Logistics Ltd).

Pillai said he will continue to be a director at the subsidiaries of Gateway Distriparks for now.

Pillai and his group companies have around 8% stake in Gateway Distriparks. Pillai has indicated that he and his investors may exit from the investment in the future.

“The company is sad to see its founding chairman stepping down. He has played a major role in seeing the company grow from its origins, when it had only the CFS business which was built from scratch under his able leadership and guidance. He has been a hands-on leader of the group and we will miss his dedication and commitment," Gateway Distriparks said in a statement.

Gupta, the new chairman said Pillai had led some big companies in Singapore and had brought in the culture of corporate governance and structure into Gateway Distriparks.

“I give him credit for taking this company to this scale," Gupta said.

Gupta is also the managing director of Gateway Rail Freight Ltd, which is considering an initial public offer.

Explaining the next steps for the company, Gupta said there are sufficient opportunities in the market and logistics is the flavour of the day.

“Besides launching our operations into new locations, Gateway Distriparks is planning to enter into new areas of business, including back-end support for e-commerce and coastal shipping. We are discussing with management team about the entry into new businesses," Gupta said.

Company results

Separately, the port-based company reported a 21.15% increase in its consolidated net profit for the March quarter due to lower expenses.

Consolidated net profit for the quarter stood at 48.77 crore compared with 40.25 crore a year ago.

The company’s profit was higher than the 46.56 crore forecast by 10 analysts polled by Bloomberg.

Net sales for the quarter fell marginally by 0.8% from a year ago to 263.53 crore.

Total expenditure fell 6.9% to 205.84 crore for the reporting quarter.

The board has recommended a dividend of 3 per share.

Gateway Distriparks shares closed at 360.40 on BSE, down 0.93% from its previous close, while India’s benchmark Sensex Index fell 0.62% to close at 27,225.93 points.

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Published: 29 Apr 2015, 01:32 PM IST
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