Kochi: Consolidated Shipping Line for partner through equity divestment

Kochi: The Kochi-based Consolidated Shipping Line (CSL), a third party logistical services provider, is seeking a strategic investment partnership to the tune of Rs60 crore through equity divestment. The group currently having a turnover of Rs70 crore is looking for expansion, said Ajai Joseph, its chairman.

With the strategic partnership, CSL is aiming to leverage its existing platform to bid for larger project contracts that are five times the size of its current contracts.

High-value government/PSU contracts require larger reserves – up to Rs20 crore and credit cycles of up to six months, Mr Joseph said. He said the quantum of equity divestment would be based on the valuation currently being done by a professional agency based in Bengaluru.

“India spends 13-17 per cent of its GDP on logistics, nearly double the ratio in developed countries. CSL has spent close to $ 1 million to strengthen infrastructure over the last three years,” he said.

The group is projecting revenues over Rs 190 crore by 2021, said Alex Philip, its chief financial officer. Towards this goal, the company has chalked out plans to increase local presence in all key global locations including the UK, Europe, Africa, Americas and China in 2019 through channel partners and by recruiting international route development managers. CSL has achieved a significant share of the Indian defence logistics requirements. The sector now contributes over 12 per cent of CSL revenues which have come from contracts won through competitive bidding, Mr Philip said.