Container Corporation of India’s auto transportation project will start commercial operations in the current financial year.
State-owned Container Corporation of India’s (Concor) auto transportation project will start commercial operations in the current financial year.
Concor, which aims to be a service provider to domestic car manufacturers, is forming a joint venture with Nippon Yusen Kaisha (NYK Lines) for sourcing specially designed car containers.
P Alli Rani, executive director, finance, Concor, said, “Right now we are aiming at domestic movement of cars, but also plan to move export volumes.”
Concor is in talks with a number of car companies, including Maruti, for transporting their products, with which it had also done a trial run.
Manufacturers are increasingly looking at moving cars in rail containers as it can transport larger volumes for lesser costs and fewer damages.
“The containers that we will source can carry 5-6 cars, which makes it feasible for manufacturers to move cars by rail,” Alli Rani said.
Besides, Concor has lined up a capital expenditure plan of Rs 600 crore to acquire 2,000 wagons in the next two years. This will add to the company’s current fleet of 9,500 wagons or 225 rakes. An additional Rs 100 crore will be spent to increase the number of inland container depots to 64 from the current 59 by this financial year end.
The New Delhi-based company’s fourth quarter revenues fell 6% to Rs 841.22 crore from Rs 893.08 crore in comparable quarter in FY08. Its net profit declined 8% to Rs 187.66 crore from Rs 202.98 crore in the fourth quarter.
Revenue from export-import segment declined 10% to Rs 636.76 crore from Rs 704.25 crore. This decline in EXIM was compensated by the growth in the domestic segment, which saw revenues rising 8% to Rs 204.46 crore from Rs 188.83 crore.
Although the company’s financial performance has been impacted by the slowdown in the trade, the management expects a 10-15% growth in revenues in FY10.
“The company is looking at a 10-12% physical growth and 10-15% revenue growth in the coming year. Looking at the current uptrend in trade this seems possible, although exports are still subdued,” said Rakesh Mehrotra, managing director, Concor, in an analyst conference call post results.
While the growth would come from domestic or EXIM, Mehrotra said the company is focussing on both as the resources are available to nurture both. EXIM contributes 70% to Concor’s revenues and 85% to profits.
As a strategy, the logistics service provider is focussing on its premium customers, who would generate more business and better margins for the company, Mehrotra said.
s_archana23@dnaindia.net
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