Sical losgistics is stock which one could look at,the company intends to be INdia's largest lisgistic player. For the past 1 year the company has under process of restructuring its business by exiting non core business investments and putting money in its core business. The company is also paing of its debts with proceeds from its non core business disposal which will help in reducing its interedt burden.

India's largest integrated logistics company, Sical Logistics is going in for a major overhaul. The company is trying to distance itself from its dubious history and reach out to investors, reports CNBC-TV18.
 

Ashwin Muthiah has taken over as Chairman of Sical Logistics from his father A C Muthiah. The grandson of M A Chidambaram - the founder of the Rs 5,000 crore MAC Group, Ashwin says his elevation sends out the message that the company is no longer going to be run like a private fiefdom.

 

Ashwin Muthiah, Chairman, Sical Logistics, said, “We are turning a new leaf in the history book of Sical. Me becoming the Chairman is the starting point of a challenge."

 

And the challenge has seen as many as seven senior managment personnel of Sical resigning. In an effort to ensure that Sical does not go the way SPIC Petrochemicals - the MAC Group's flagship company that was allegedly mismanaged for years - went. The new management said the direction of the company for the next few years is very clear.

 

Muthiah said, “Our aim is to become one of India's largest logistics solution provider."

 

Over the last one year the company has raised USD 100 million and will raise a further USD 25 million for expansion. It will also buy more offshore vessels including dredgers. By 2010, Muthiah said, the target is to double the turnover to Rs 5,000 crore.

 

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The Company has set ambitious targets and I think it could be easily achieved with kind of momentum and growth is coming to oil and gas sector. Also I read somewhere that India service industry is set to grow at more pace as compared to developed country and i think Sical could be a direct benficiary of this boom. 

Nearly 30 years back SPIC was quoting around 7 and I had the opportunity to know personally that it was a reasonably well-managed company though I had no interest in shares then.Subsequently the stock went up 30 times and came back to around par value,I think(this is my perception) because of problems in the industry and subsidy receivables from the government and not due to mismanagement because even 30 years back they had the best of consultants to advise them.I think the MAC group is powerful and may deliver the goods in SICAL if the industry does well as is expected.

Edited by Ajith - 03/May/2007 at 11:08pm

Future Group forms separate logistics unit 

The Future Group has re-organised its logistics department into an autonomous company called Future Logistics and Solutions. The new entity will provide services such to the various Group formats. The services will include warehousing, infrastructure, transport, networking and IT to retail verticals within the Group. The unit will have its own surface fleet and cold chain. Anshuman Singh will be the CEO of the new company. His turnover target in the next three years is Rs 500 cr. While the initial focus will be coordination with fashion vendors, the intention is to integrate logistics for fresh produce and food as well.

 

Source: www.indianretailobserver.com