Tatas' logistics firm outlines expansion
The Financial Express — December 22, 2004

TM International Logistics Ltd, a 51:49 joint venture between Tata Steel and German logistics enterprise IQ Martrade Holding, has drawn up a 6-pronged strategy to expand into a Rs 1,000-crore company by 2008-09, according to TM International managing director SC Saxena. This Tata Steel venture started operations by taking over port-related activities at Paradip, Mumbai and Visakhapatnam from the parent in 2002 and acquired Berth No. 12 at Haldia port of Kolkata Port Trust.

Under the new strategy cleared by the TM International board, the company will acquire and develop more port terminals in the country, both on the east and the west coasts. At present, apart from Haldia’s berth 12 (meant for steel and limestone), it manages Tata Steel’s berth eight at Haldia, which handles dry bulk cargo. Second, it plans to acquire bulk carriers in the near future. “At present, the market is hot and acquisition would not be economically viable. The moment it stabilises, we would go for that,” Mr Saxena told FE.

Third, the company now uses only one mobile crane at Haldia, but has plans to add a few more to improve cargo handling efficiency and thus reduce the turnaround time, which in turn reduces the ocean freight, which customers have to pay in foreign exchange. Fourth, it plans to start non-vessel operations by reserving slots in container vessels owned by others for certain sectors. Fifth, it would acquire more containers with an aim to increase container service in the years to come. It has recently acquired 50 containers.

Sixth, it would soon open new offices in Pune and Nagpur and then at Surat and Coimbatore to increase its customer base. At present, Tata companies provide 65% of its total business, while others — Steel Authority of India Ltd, Bhushan Steel and Usha Martin account for — 35%. “Our target to become a Rs 1,000-crore company during our seven years of operations is a realistic one if you look at our performance graph,” Mr Saxena said.

Within a year, TM International expanded its activities to chartering, freight forwarding, customs clearance and ship agency in various ports and earned a profit before tax (PBT) of Rs 7.7 crore on a turnover of Rs 73 crore. In 2003-04, PBT went up to Rs 11 crore and turnover Rs 104 crore while in the first half of the current fiscal Rs 16 crore and Rs 119 crore, respectively.