- Acquires two Hong Kong based companies engaged in Non Vessel Owning Common Carrier (NVOCC) business in China and other parts of eastern region.
Mumbai, 25th Oct 2010: Allcargo Global Logistics Limited, a Mumbai based logistics service provider involved in Multimodal Transport Operations (MTO), owning and operating Containers Freight Station (CFS) and handling of project cargo, today announced an acquisition and controlling stake in Hong Kong based companies engaged in NVOCC business. The acquisition valued at approx USD 22 million has been undertaken in furtherance to the expansion plan of the Company of its Non Vessel Owning Common Carrier (NVOCC) business, through its step down wholly owned subsidiary.
To further expand into the project cargo movement business, Allcargo Global has acquired two vessels with a dead weight of approximately 6,500 tons through its wholly owned subsidiary company.
Speaking on the acquisition, Mr. Shashi Kiran Shetty, Chairman and Managing Director, Allcargo Global Logistics Ltd. said, “This acquisition will further expand Allcargo’s growth organically, strengthening the company’s operating profit by adding approximately USD 3.53 million on an annual basis. The company will save substantial cost on ship chartering and hiring thus supporting planning and execution of project cargo movements in an efficient and effective manner. This further helps to capitalize on opportunities in the Indian sub-continent including coastal movement.”
He further added, “These companies are agents of ECU line within the global network. China is a leading international EXIM economy and large cargo volume generator. Through this acquisition we will further consolidate our position in the global LCL market. The two companies employ 350 people. The group has its regional head quarters in Hong kong and has ambitious plans for the region”.