Allcargo Global Logistics marginally up on its plan to foray into third-party logistics biz

Allcargo Global Logistics is currently trading at Rs. 160.25, up by 0.20 points or 0.12% from its previous closing of Rs. 160.05 on the BSE.

The scrip opened at Rs. 162.00 and has touched a high and low of Rs. 162.00 and Rs. 160.10 respectively.

The BSE group 'B' stock of face value Rs. 2 has touched a 52 week high of Rs. 200.80 on 15-Apr-2010 and a 52 week low of Rs. 125.05 on 31-Jan-2011.

Last one week high and low of the scrip stood at Rs. 163.80 and Rs. 146.50 respectively. The current market cap of the company is Rs. 2114.57 crore.

The promoters holding in the company stood at 69.83% while Institutions and Non-Institutions held 11.81% and 18.36% respectively.

In an aim to become an integrated logistics player in a few months, Allcargo Global Logistics is planning to enter third-party logistics business space. It is also planning to expand its warehousing capacity at Verna (Goa), Hosur and Nagpur to 400,000 sq ft with an investment of Rs 40 crore.

Allcargo is a market leader in the less-than-container-load (LCL) segment -- shipments that are insufficient either in weight or quantity for standard containers. The company is planning to rapidly expand the ICD (inland container deposit) footprint across India and aims to grow by setting up own facilities or through acquisitions. The company is actively scouting for acquisitions in the fast growing markets of India and East Asia as it aims to almost double its revenue to $1 billion by 2014.

Of its total capex of Rs 250 crore for the year ending December 2011, the company plans to utilise Rs 40 crore for ICD development at Dadri and Hyderabad. Last year, Allcargo had acquired business rights and controlling stake in Hong Kong based companies engaged in NVOCC business in China and other parts of eastern regions.

Third-party logistics providers handle all or most of a company's freight and production distribution activities, thus relieving the customer from day-to-day logistical issues. Allcargo provides various services such as inbound and outbound consolidation, multi-city consolidation, FCL forwarding airfreight forwarding activities project cargo handling and transportation and CFS operations.