Gati gets more focussed, to hive off fuel station biz
Express distribution company Gati is planning a business restructuring exercise, whereby the fuel station business of the company will be hived off into a separate entity.
By TNN |
HYDERABAD: Express distribution company Gati is planning a business restructuring exercise, whereby the fuel station business of the company will be hived off into a separate entity.
Apart from its core business, Gati is also present in sectors like container vessel and fuel station operation that contribute 12% and 18% of its Rs 460 crore revenues, respectively.
“Though the fuel station business brings in 18% of the revenue, the contribution to the bottomline is minimal. Also, it is not our core business. So, we are planning to hive it off,” said Manoj Agarwal, chief marketing officer, Gati, here on Wednesday.
Gati has also embarked on a $100-m expansion drive which includes adoption of ERP systems and global positioning system to track shipments. “We are strong in door-to-door, time-bound package delivery by surface or air, where we have 22% market share,” said Mahendra Agarwal, MD and CEO, Gati.
With more and more overseas players lining up their India foray, the market is likely to expand. “The investment being made is to retain our market share,” he added.
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Gati is also in the process of acquiring a new ship with an investment of $13m, which would be operational from March ’08. The company has announced its results for the first quarter ended September ’06. It posted a 29% growth in net profit to Rs 5.62 crore, as against the same period the previous year. The topline, at Rs 133.53 crore, was up 33% compared to the year-ago period.
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