Gati eying small cargo firms in China
31 Dec 2008
Gati Cargo Express (Shanghai), the Chinese subsidiary of Indian logistics provider Gati, is looking for a local partner or a small acquisition in order to expand its operations in China.
Clarifying on a news item that Gati was looking to acquire a Chinese cargo company for around $5 million, the company said it was looking for a company which would complement its operations.
''We are looking at a hybrid model, which includes operating with own offices and through a partner for widening our footprint. We have identified three small firms in China for acquisition. We are looking at a company which would complement our existing operation. We have a coffer of $5 million for the possible acquisition,'' Gati International chief business officer Sameer Khatri said.
The company also clarified that neither the target company/alliance partner nor the date of possible acquisition has been finalised.
He also said any proposed alliance/acquisition would not have a significant bearing or material impact on the top-line and bottom-line of the company and that the sole purpose is to enhance efficiency in operation.
Hyderabad-based Gati already has offices in China, Singapore, Thailand and Hong Kong. These operations together contribute 5 per cent of Gati's total revenue.
Gati saw its business drop 10-12 per cent in India following a slow-down in economic activities while its international air-freight business fell 6-8 per cent.
Gati has an annual turnover of nearly Rs600 crore and employs over 3,500 people. It recently started air cargo and courier service with national carrier Air India.