Gati to invest $100 mn in expansion

Gati to invest $100 mn in expansion
PTI
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First Published: Mon, Feb 25 2008. 04 14 PM IST
Updated: Mon, Feb 25 2008. 04 14 PM IST
New Delhi: Logistics and supply chain management company Gati Ltd will invest $100 million over the next 18 months to expand operations in the domestic and overseas markets as it expects to become a Rs1,000 crore firm by 2008-09.
The company plans to spend $100 million for expanding warehouses, build up IT capabilities and entering new business areas.
“We would complete the planned investment of $100 million by June 2009 to expand our warehouses and other services. The company intends to touch a top line of Rs1,000 crore by the end of the proposed expansion,” said Mahendra Agarwal, managing director, Gati Ltd.
He said the company, which operates a July-June fiscal, closed 2006-07 with revenues of Rs460 crore.
Gati plans to fund the proposed expansion through a mix of internal accruals and debt. The company has already raised $40 million, while the remaining $60 million would come from internal accruals.
The company had tied up with Air India to launch AI Gati Zipp service in November last year. It would soon expand its fleet size by adding third aircraft next week. Air freight carriage presently contributes 15% to Gati’s turnover.
Gati on Monday entered into a strategic alliance with Amsterdam-based parcel service provider General Logistics Systems (GLS), to start its operations in Europe.
The company, which covers 594 out of 604 districts in India, would act as the strategic partner of GLS in India.
“The alliance with Gati is specially designed to provide both GLS and Gati customers the advantages of size, reach, flexibility along with infrastructure to provide unmatched service levels in India and Europe,” said Saadi Al-Soudani, managing director, GLS.
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First Published: Mon, Feb 25 2008. 04 14 PM IST
More Topics: Gati | India | Gls | Expansion | IT |