Gati to go global, plans Rs 450 cr investment

Hyderabad, Oct 11 (UNI) Planning to go global, distribution and supply chain major Gati Ltd today said it would invest Rs 450 crore in the next three years to fuel its ambitious growth plans of becoming a Rs 1,000 crore entity by 2009.

Speaking after a meeting of the Board of Directors here, Gati Managing Director and Chief Executive Officer Mahender Agarwal said the company had already raised Rs 90 crore through right issues and private equity placement with the The Infrastructure Fund Of India (TIFOI).

Gati's market capitalisation had grown to Rs 650 crore post rights issue and private equity placement, compared to Rs 263 crore last year.

Of the Rs 450 crore investment, the company would raise 20 million USD from TIFOI besides an equivalent amount from the promoters. The balance would be raised through debt and internal accruals.

The new investment would be utilised for opening 'mechantronic' warehouses, technology upgradation and improving delivery system.

The company had also ordered for a 7500 DWT ship with Ashima Shipyard in Bangkok at a cost of USD 1.4 million to augment operations on the Chennai-Port Blair-Yangon sector.

Gati Ltd reported a 33 per cent increase in revenues for the first quarter ending September 30, 2006 to Rs 133.53 crore from Rs 100.36 crore in the corresponding period last year.

Its net profit was up 29 per cent at Rs 5.62 crore from Rs 4.37 crore in the same period last year.

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