Thursday, August 6, 2009

LDA Takes Big Stake in ABG

New Indian venture formed
Shipping News Feature

INDIA - Louis Dreyfus Armateurs (LDA), the French shipping and logistics firm, and Mumbai-based ABG Infralogistics have formed a joint venture to offer port and logistics services in India. The new company, ABG-LDA, is looking to invest some $80 million in barges and cranes for its operations.

Mr Saket Agarwal, director of ABG Bulk Handling said that: “We hope to register a total tonnage of about 10-30 million tonnes during 2010-11. And with handling rates of Rs 75-100 per tonne we are looking at first year revenue of Rs 180-300 crore*.

Having established a formidable presence in the growing infrastructure space of the economy, being one of the two largest crane rentals company in the country, and a presence on both the coasts of the country for container terminal operations at Kandla and Kolkata, it was only logical that ABG entered into the business of handling bulk cargo.”

LDA is understood to have spent $18.7 million to acquire the 49% stake it now has in ABG to make the venture possible.

* A crore is 10 million in the Indian numbering system.