Sical's top executives 'sign out'

Chennai, Mar 25: City-based Sical Logistics, a leading logistics services provider, is facing a 'serious crisis' with at least five of its senior level management personnel having either quit or put in papers in the last few months.

It was a major set back for the company which had its presence in port terminals, port handling, ship agency, trucking warehousing, container and offshore logistics and containers as these personnel had been with the group for more than two decades, industry soruces said.

All does not seem to be well with Sical as there was a sudden fall in its turnover, especially the profits in the logistics business in the last three quarters, the sources said.

Sical's attrition rate had suddenly reached a peak in the last six months during which time about 25 crucial operating and middle level personnel from various branches of logistics business were believed to have left the company.

Those who left the company included at least five senior executives and personnel with rich experience, the sources said, adding a Vice-President and the CFO had already quit Sical and joined other companies.

The sources said Company's Managing Director Ramkumar, Managing Director of Sical Distriparks Limited Sankar and four or five senior executives in the ranks of General Manager and Vice Presidents had submitted their resignations but were yet to be 'relieved'.

A visit to the company's website would give details of financial results of Q2 and Q3 of 2006-07, but the results for Q1 was conspicuous by its absence.

Enquiries revealed that nine months net sales of Sical's logistics division was Rs 3.89 billion, down 13 per cent from Rs 4.47 billion a year ago.

"The nine months profit before interest and tax of the division was also down 37.74 per cent."

Industry sources also said the company, in an anxious effort to show 'rapid growth' and satisfy market expectations and sustain the share price, had ignored consolidation and growth of its core logistics business. The company had started to restructure and recruite few executives in the last six months or so. But they left within four months apparently dissatisfied with company's new found attraction for personnel from courier and parcel companies.

Known for allowing professionals and committed personnel to run their respective businesses independently, the company suddenly started interfering in their work through its newly-inducted personnel at the corporate office, the sources said.

This made the senior personnel totally disillusioned, the sources said adding "many proposals and decisions given by the business heads have been dropped or changed or modified because of this interference." There was heartburn among the senior personnel as select few, especially new recruits, were given phenomenal increase in pay package. These personnel were instrumental in the growth of the company during the last decade or so, the sources added.

The decline in the performance of the logistics business in the current fiscal was attributed to disillusionment among experienced team and their departure would be a big blow to the company, the sources claimed.

UNI