As Logistics, Retail and Security are expected to big sectors of future, I think Bartronics has capability of capturing growth in all these.
The company had EPS of more than 9 RS last year. It has been growing at more than 100%. It is available at PE of less than 10 for current year. It is value play with visible growth. We can probably get a multibagger in Bartronics.
Joined: 29/Oct/2006
Location: India
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Posted: 26/Jun/2007 at 2:05pm
Sical Logistics Ltd, India’s leading provider of integrated solutions for offshore logistics and multi-modal logistics for bulk and containerized cargo, today announced that the audited consolidated net profit, after prior period and exceptional items, for the year 31 March 2007 (FY 06-07) was Rs 450.4 million, from Rs 573.5 million a year ago. Net profit before prior period and exceptional items was Rs 341.4 million, from Rs 687.6 million a year ago.
Net sales for FY 06-07 was Rs 9.9 billion, up 6% from Rs 9.6 billion a year ago.
Consolidated net sales of Sical’s core logistics business was Rs 6.7 billion, up 6% from Rs 6.4 billion a year ago.
The prior period items relate to tax adjustments in FY05-06, while the exceptional items relate to the net impact of the disposal of the non-logistics businesses of oil palm, refractories, agri-bioproducts, real estate property, flexible shafts, and costs of restructuring.
Consolidated cash reserves, as of 31 March 2007, were Rs 2.67 billion; total debt stood at Rs 5.32 billion.
Comment by Sical Logistics Chairman, Mr. Ashwin Muthiah
Sical Chairman Ashwin Muthiah said that the results for FY06-07 should be seen in the context of the multi-dimensional change at Sical.
“The results are broadly as per our internal estimates. We have been saying that Sical’s strategy, put in place in FY05-06, of focusing exclusively on the core business of integrated multi-modal logistics, while being growth-oriented, would, given the sacrifices involved, cause some pain in the short and medium term,”, Mr. Ashwin Muthiah said.
“I would reiterate that Sical’s growth pangs are not yet over—we should expect earnings-related turbulence over the next four quarters,” Mr. Ashwin Muthiah added.
“That said, FY06-07 was a watershed year for Sical; we renewed our focus on our core business proposition of logistics by exiting some non-core activities, we got international strategic funds to invest in our vision, and have in place professional managers of the right caliber to take our vision forward,” said, Mr. Ashwin Muthiah.
“Our aim is to not only consolidate our leadership position in Indian multi-modal logistics, but also to seize the opportunities in value-added businesses such as global offshore logistics and third party (3PL) and fourth party (4PL) logistics,” Mr. Ashwin Muthiah elaborated.
Exit from Non Logistics businesses
Vanagaram Refractories Works Industries Ltd (VRW), a division that manufactures refractory bricks, was sold for Rs 407.9 million.
100% subsidiary Mac Oil Palm Ltd was sold to Soyumm Marketing for Rs 293.7 million.
Agri-bioproducts was sold for Rs 68 million.
Other non core business including auto, drums, specialty chemicals and flexible shafts are in the process of being sold.
Fund raising, preferential allotment
In April 2006, Sical raised USD 75 million (Rs 3.30 billion) in foreign currency convertible bonds (FCCB); the FCCBs are listed on the Singapore Exchange.
In April 2007, IDFC Private Equity, the largest private equity investor in India’s infrastructure and logistics sectors, invested USD 26 million (Rs 1.16 billion) for 14.82% stake in Sical via a preferential allotment of equity shares at Rs 222 per share.
Sical has initiated the preferential allotment of 2.05 million equity shares each to Credit Suisse Singapore and Macquarie Bank at Rs 250 per share.
Acquisition of Singapore-based Bergen Offshore, Sical Torino
·In September 2006, Sical announced its acquisition ofSingapore-based Bergen Offshore Logistics Pte Ltd, a provider of specialized logistics for offshore oil and gas exploration. The acquisition is a logical extension of Sical’s existing offshore logistics business which operates and manages offshore supply vessels for ONGC.
The USD 96.9 million acquisition was funded via USD 16.9 million from Sical’s FCCB offering in April 2006 and the remaining via a structured loan of USD 80 million from NIBC Bank, Singapore. This was to have a new build 470 Mk II PSV from Aker Yards in Molde, Norway as well as three heavy duty AHTs. Due to difficulty in transition of the contracts of the three AHTs, Sical decided to limit the acquisition to the new build PSV. While Sical funded its equity the borrowing was reduced to USD 25 million from NIBC Bank.
In October 2006, Bergen Offshore took delivery of the latest generation specialty 470 MK II class platform supply vessel (PSV), for USD 31.3 million; Sical Torino currently services deepwater oil rigs in the North Sea.
Key appointments
During the year, the following people joined Sical in key management positions:
In November 2006, CEO K. Sridhar joined Sical; his earlier experience includes FedEx, DHL, and ITW Signode.
In January 2007, CFO S. Bhaskar joined us from Hindustan Lever; he’s earlier worked with Marico and Shaw Wallace, Mr Bhaskar is a member of the Institute of Chartered Accountants of India.
In November 2006, Sical Distriparks CEO L.R. Sridhar joined Sical. Mr Sridhar has worked with TNT, Skypak, and Overnite Express.
·Ashwin Muthiah was appointed Chairman of Sical’s Board of Directors at an extra-ordinary general meeting in April 2007. He had been serving as Sical’s Vice Chairman.
The Sical Board was also restructured to include two promoter nominees, one nominee director from IDFC Private Equity, and three independent directors. Luis Miranda, President and CEO of IDFC Private Equity, was inducted as IDFC Private Equity’s nominee Director, while Karthik Menon, Sical’s Vice-President – Finance and Strategy, was inducted as a promoter nominee and whole-time Director.
Subsidiary, SPVs
Sical is setting up a wholly owned subsidiary to house its ownership in infrastructure-oriented and asset–intensive businesses. It will enable Sical to clearly segregate the services-oriented and the infrastructure-oriented businesses, and ensure dedicated management focus on each segment.
Nagpur Sical Gupta Logistics Ltd, a special purpose vehicle, was formed with Sical as the lead consortium partner with 51 % stake, for the rail terminal Project at MIHAN, Nagpur. The terminal is expected to be operational by end FY07-8.
Nagpur Sical Gupta Road Terminal Ltd, a special purpose vehicle, was formed, with Sical as the lead consortium partner with 51% stake, for the road terminal at MIHAN, Nagpur. MADC owns 26% of equity for contributing land towards the project.
Has Patel Integrated any link with the Future group there was a rumor that they want to takeover patel roadways as they are manging future groups delivery network.
any idea after the merger with Patel air mcap to sale ration is ver low.
Joined: 07/Feb/2007
Location: India
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Posts: 2827
Posted: 10/Jul/2007 at 10:18am
FedEx fails to clinch Safexpress deal
MUMBAI: Federal Express’ attempt to enter the domestic logistics business have received a setback with the failure of its attempt to buy out SafeExpress, one of the largest Indian logistics company. Persons close to the deal said the valuation was the deal-breakers. An e-mail sent to Safexpress has not elicited any response, while FedEx in an e-mailed response said: As a company policy, we do not comment on corporate development activities.
This deal could have been significant for FedEx Express, because its competitors, DHL and TNT, have been successful in entering the domestic logistics segment in India through strategic acqusitions. TNT acquired Speedage, a divison of ARC India, in 2006 for an amount of Rs 200 crore, while DHL had acquired 81.03 % of Blue Dart in 2004 for an amount of Rs 730 crore.
Had the deal gone through, it would have given FedEx a fairly huge chunk of the market in the express cargo, 3PL and warehousing segment.
The opportunity for integrated solutions in the logistics industry is huge and FedEx Express, the world’s largest express distribution company did not want to miss it. A proposed Central Sales Tax (CST) phase out, investments in infrastructure and technology as well as pick up in manufacturing outsourcing have been driving the demand for logistics solutions in India.
But FedEx was not ready to pay the high price that SafeExpress wanted. According to people privy to the details, SafeExpress founder and managing director Pawan Jain was valuing the company at Rs 2,000 crore. He drawn this inference from the fact that a large private equity fund was offering to invest Rs 200 crore for a 10% stake in the company. Federal Express was willing to pay Rs 1,500 crore for the company and later uped it to Rs 1800 crore but decided to increase it no further.
According to people in the know Federal Express thought any increase would make the price too high for a company that clocked Rs 328 crore in the last financial year. To make matters difficult, in 2006-07, Safexpress grew at around 10%, which is low compared with the growth rates of 20-25% in the past 12 years of SafeExpress’ existence. While the discussions with FedEx were on Mr Jain was also being chased by the top PE players in the country to sell a some stake in the company. Says a source close to the development. There was lots of confusion around at that time. The management was not able to make a choice.
Something had to give. So, in a final meeting, held at one of the banker’s place, a couple of weeks back, FedEx walked away from the deal. Ernst & Young were the bankers of Safexpress, while FedEx was represented by JP Morgan. The anxiety in the minds of top officials with respect to Mr Jain’s inability to take a standing decision on the matter has been building up for a while now. The employees were not sure of their fate in the course of change in ownership.
Eventually, one by one, the regional mangers and head of operations of various divisions started putting in their papers. In the last eight months a large number of top rung managers at Safexpress have quit. This list includes names like, Rajiv Bhattacharya, regional head-Delhi, Sravan Kumar, regional head-Bangalore, Capt. Aman Bhalla, vice president-operations, Mandeep Singh head-Gurgaon division, Naval Sabhrawal, head-Third Party Logistics (3PL), Anil Syal, vice president-marketing and Pradeep Dubey, Regional Manager-Pune, who has put in his papers recently.
Joined: 02/Sep/2006
Location: India
Online Status: Offline
Posts: 9319
Posted: 11/Jul/2007 at 4:40pm
The sixth edition of 'Logistics Summit-2007', to be held here in September, will push for industry status to the estimated $ 73 billion-sector in the country, Summit Chairman H R Srinivasan said on Wednesday.
Addressing a press conference here, he said the summit would deliberate and come out with a paper to be presented to the government, seeking industry status to Indian logistics, which was vital to make it a competitive tool in the growing economy.
He said the theme of the two-day summit, jointly organised by the CII and Institute of Logistics from September 20, would be 'Powering Growth Through Logistics Innovation and Integration.'
The summit would focus on logistics in four sectors, agriculture, retail, construction and automotive and also discuss the transaction cost and its impact on Indian economy.
Joined: 07/Feb/2007
Location: India
Online Status: Offline
Posts: 2827
Posted: 11/Jul/2007 at 6:28pm
DTDC to enter warehousing biz
MUMBAI: Private courier firm DTDC on Wednesday indicated it may dilute equity to a global logistics player, with whom it can venture into the Rs 5,000 crore domestic warehousing sector.
The company had offloaded 40 per cent stake to ADA Group last year.
"We can think of further dilution of stake in the company provided we get a strategic partner who is having similar interest in the business of supply-chain logistics," DTDC Chairman and Managing Director Subhasis Chakraborty told PTI.
The second largest player in the domestic courier industry is planning foray into the warehousing business to cash in on the burgeoning retail sector.
"The business will take proper shape from the last quarter of the current fiscal and the commercial activity will start from the next financial year."
He said in the first year of operation itself the company would target to generate Rs 25 crore revenue. DTDC expects to record a turnover of Rs 200 crore this year from Rs 166 crore in the last fiscal.
"Many international freight and logistics players are talking to us to partner us in our proposed warehousing venture. Currently, we are evaluating their proposals. No concrete decision, however, has been taken yet."
Stating the retail sector was the next big thing in the country requiring massive warehousing and supply-chain facilities, Chakraborty said DTDC was looking to be a major player in this field.
Joined: 07/Feb/2007
Location: India
Online Status: Offline
Posts: 2827
Posted: 12/Jul/2007 at 10:11pm
Govt plans to build cold storage facilities in a dozen airports
Smaller airports such as Tiruchirapalli, Srinagar and Jammu will have refrigerated containers that can store 8-10 tonnes of perishable products
An agricultural export promotion agency of the Indian government is building cold storage facilities at more than a dozen airports in the country in a bid to increase exports of perishable food products by 25% in a year’s time.
At present, only the six international airports at New Delhi, Mumbai, Chennai, Hyderabad, Bangalore and Thiruvananthapuram have cold storage facilities for perishable cargo.
“We are covering as many airports as we can,” said Harpal Singh, deputy general manager at the Agriculture and Processed Food Products Export Development Authority (Apeda).
He added that the agency would focus on international airports, even those where “there is a single international flight”.
Singh said the facilities would cost a total of around Rs55 crore, which would be funded by the ministry of commerce and industry, which oversees Apeda.
According to Apeda’s plans, bigger airports such as those in Kochi, Kolkata and Guwahati will have elaborate cold storage facilities, including a receiving area for perishable produce, weighing, X-ray, palletization, and storage.
Smaller airports such as Tiruchirapalli, Srinagar and Jammu will have refrigerated containers that can store 8-10 tonnes of perishable products.
Singh said almost 50% of the freshness of the produce is lost in India itself before the consignment is loaded onto a plane. “We want to cut down the period by providing better infrastructure,” he added.
Singh said that while earlier it took six-eight hours to load perishable cargo at Indian airports, this time has been reduced after the airports acquired better handling and storage facilities.
At New Delhi’s Indira Gandhi International Airport, for instance, it takes just two hours for this process.
Apeda is also looking at building such facilities at smaller airports. For example, the agency is building a cold chain at Guwahati and refrigerated containers at some other airports in northeastern cities including Imphal, Dimapur and Agartala.
“There are some special produce from the North-East… for example, kiwis,” said Singh. “The idea is to bring these to the other parts of the country as well as (export them) to the world.”
Apeda will either build the facilities and hand them over to government agencies or fund the agencies to build them.
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