Concor Vizag revenues shoot up 124%

"In the fiscal ended March 31, 2005, we earned revenues of Rs 28 crore as compared to Rs 12.5 crore in 2003-04, representing a growth of about 124 per cent. In the current fiscal, we are expecting 70-80 per cent growth in the earnings," V Kalyana Rama, senior general manager, Concor, told Business Standard.

One of the reasons for the increase in revenues was the influx of exim cargo containers at Vizag port during last fiscal.

"During 2003-04, we handled only 400 exim cargo containers, whereas in 2004-05 the exim cargo containers flow increased to 7,106. The domestic cargo containers too increased to 9,838 in 2004-05 as compared to 6,000 containers in 2003-04. In the current fiscal, we are expecting 20,000 domestic and 10,000 exim cargo containers," he said.

In the current fiscal, Concor Visakhapatnam office expects revenues of more than Rs 50 crore.

"Our client Concast Steel, located in Srikakulam District, is going to use our services from this month to export their pig iron. It is planning to export around 200 containers of pig iron per month. Other clients too will be using our services. This will enable us to provide complete logistics to our customers," he said.

Visakhapatnam Steel Plant (VSP) is the main customer of Concor. VSP has been using Concor's services to transport its steel products to its stock yards located in different parts of the country.

During last fiscal, out of the total revenues of Rs 28 crore, about Rs 10 crore was generated from VSP alone and in the current fiscal, Concor is expecting more than Rs 25 crore revenues by transporting VSP products alone.

"At present, we bring 16-17 container rails per month to Visakhapatnam port, whereas last year it was only 4-5 container rails per month. In the current fiscal, we plan to increase this frequency to 25-30 container rails per month," he said.

To provide value-added services like stuffing and de-stuffing of containers, and creating warehousing facility for bounded cargo to the customers, Concor is setting up Container Freight Station (CFS) near Visakhapatnam port at an investment of Rs 10 crore.

CFS will become operational from June and Concor is expecting revenues of about Rs 5 crore from it, Kalyana Rama said.