We will get at least 30 big customers: Shashi Kiran Shetty, Allcargo Logistics

Shashi Kiran Shetty, executive chairman of Allcargo Logistics, believes it is the right time to get into the US as manufacturing there is poised to pick up significantly. He explains the logic behind the acquisition in an interview with with Megha Mandavia. Edited excerpts:

What makes United States an attractive market right now?

Shashi Kiran Shetty: Manufacturing in the US is likely to gain traction. Many factories are moving back to America. The US manufacturing is getting more competitive because of the lower energy cost of shale gas and natural gas. President Obama has declared that America wants to get more in manufacturing, which is great news for us because exports will grow from there.

How will this buyout help Allcargo in its expansion plans?

Shashi Kiran Shetty: It was necessary for us to be the number one player in the world. With this expansion we are the number one in the less container load (LCL) consolidators in the world.

How many clients do you expect to add with this buyout?

Shashi Kiran Shetty: At least about 30 large customers. They are operating out of the US, but are not currently working with us.

Is the next buyout also in the LCL space?

Shashi Kiran Shetty: The next acquisition is about a new service we want to launch. The company specialises in the full container load (FCL) space. We see a lot of opportunity in FCL.