Passage of GST Bill will be a big boost to the industry: Prakash Tulsiani, Allcargo Logistics
Dated 22nd February, 2016
With the budget just around the corner, approached Allcargo Logistics ED & COO Prakash Tulsiani to understand the company’s expectation from the budget. Tulsiani is hopeful that the Goods and Services Tax (GST) bill will pass through the house this time while anticipating that the industry will get its due recognition as an important industry.
Make in India
Tulsiani sees the greater need for including logistics industry in Make in India initiative and expects the government to incentivize the sector. He explained that the logistics sector is an export-oriented industry, which needs incentives in place to help it gain rail freight corridor as and when industrial parks are set up. Other from this, Tulsiani also sought clarity on fund allocation and implementation status of inland waterways and Sagar Mala as he mentioned that these policies appear to be attractive.
While disclosing the company’s expansion plans, Tulsiani noted that the construction of the company’s Container-Freight Station (CFS) in Kolkata is likely to conclude by year-end. The company has acquired land from the port trust in Kolkata for this project. The outlet in Kolkata is said to have outlet worth Rs 35 crore, according to Tulsiani.
CCI Logistics Acquisition
Apart from this, the company’s board has given a go-ahead for the acquisition of CCI Logistics. The company currently offers warehousing, logistics and distribution services to a range of industries including FMCG, auto, chemical industry and Pharma.
The company will acquire the controlling interest in the company and expects the capex to take place over the next three months. Tulsiani said that the valuation process is about to begin, and the acquisition is due to receive statutory and regulatory approvals. He added that the valuation of the said company could be disclosed in next three months.
Tulsiani steered away from disclosing the financial details of the target acquisition stating that it will cloud the valuer’s judgement. He reiterated that the specific details about the deal will be revealed once the valuation is done.
(This article is published in indiainfiline.com on 23 Feb, 2016)