Expanding Indian road express company Gati reported net operational sales up almost one-third inthe quarter ending 30 September, compared to the same period last year.
Revenue reached $29 million (1.3 billion rupees), growth of around 30% on the $22.2 millionachieved in the same quarter in 2005. Annual turnover in the year ending 30 June had reached $100million.
Net profits on the rising revenues, in what is the first Indian quarter in the 2006-2007fiscal year, increased 24% to $1.2 million (56 million rupees) from $970,000 in 2005.
Most of the growth (two-thirds) was achieved in the express distribution and supply chain,although coast-to-coast shipping and fuel stations were also up significantly, the companyreported.
Gati managing director Mahendra Agarwal said in an interview with CNBC that it was seeking toraise $43 million from a share issue to fund $100 million expansion plans.
The company has embarked upon a major rebranding to position itself as a global logisticscompany, adopting a new logo and the catchline “Ahead in Reach”, with plans to see annual revenuedouble to over $200m by 2009.
Internationally, it is opening an office in Dubai to add to those in China, Hong Kong, SriLanka, Nepal and Bhutan. “Our focus is to expand to the entire Asia Pacific region,” Agarwal said.The company plans to double warehouse capacity to 2 million square feet.
In India, Gati opened new express distribution centres in Coimbatore and Ambala earlier thisyear and plans to build larger facilities in Mumbai, Bangalore, Chennai, Hyderabad, Ahmedabad, Puneand Kochi soon, it says.
