Apollo LogiSolutions today said it has entered the Inland Container Depot segment by entering into a joint venture with India Glycols Ltd.
"ALS will hold 51 per cent in the JV," named Kashipur Infrastructure Freight Terminal Private Ltd, the logistics solutions provider said in a statement.
ALS is a logistics arm of Apollo International Ltd.
"The JV will develop, manage and operate freight terminal at Kashipur, Uttarakhand at an estimated project cost of Rs 90 crore. The JV will be funded through combination of debt and equity. The facility is expected to be operational by April 2015," ALS said in a statement.
ALS Vice Chairman and Managing Director Raaja Kanwar said: "Our entry in the ICD segment is another significant step towards building integrated logistics capabilities. With this opportunity, we will not only be better equipped to handle and store containerised cargo but also provide our hinterland customers port services closer to their premises."
IGL Chairman U S Bhartia said: "We are excited to work with the team at ALS. We will be supported by ALS domain expertise to manage supply chain management of our inbound and outbound cargoes to and from the manufacturing plant and thereby this partnership will allow us to concentrate more on our core business."
ALS'current foray into ICD is backed by its experience of operating large dry ports at Panvel, Mumbai and at Chennai.
The Kashipur terminal is designed to serve captive volumes of IGL and is expected to capture third party volumes in the hinterland.
ALS is a logistics solution provider while IGL is engaged in the manufacturing and marketing of chemicals and the firm is the largest manufacturer of Bio-MEG in the world made out of agriculture feedstock, Molasses and Ethanol.
