Chennai: Consolidated Shipping Line (CSL Group), a leading third-party logistics operator with an exposure to the Indian defence sector, has projected tripling of its revenue from the current Rs 70 crore by 2021.
CSL is also seeking a strategic partnership involving an investment of up to Rs 60 crore through equity placement, a CSL press release said.
The group has drawn up plans to boost its market share in defence projects by five times, upgrade infrastructure and technology and improve profitability by optimizing costs.
With the strategic partnership, CSL said it aims to leverage its existing platform to bid for larger project contracts that are five times the size of its current contracts.
High value government/PSU contracts require larger reserves – of up to Rs 20 crore – and credit cycles of up to 6 months, but they generate higher margins of up to 30 per cent.
“India spends 13-17 per cent of its GDP on logistics, nearly double the ratio in developed countries. CSL has spent close to $1 million to strengthen infrastructure over the last three years. The company is poised to execute on market needs, based on its capabilities in warehousing, technology-enabled solutions, logistical parks and transportation strengths,” said chairman and CEO, CSL, Ajai Joseph.