Patel Integrated Logistics-On The Wings Of Change BSE 526381; CMP Rs 44 At a market cap of roughly Rs 60 crore, and quite cheaply at that, the oldest logistics concern in the country Patel Integrated, is now moving "On The Wings Of Change". The lethargy of the past will give way to aggression, consolidation of promoter holding through the creeping acquisition route (as many as 6 lakh shares are proposed to be procured from the open market), and grow the business in a manner that reflects the prime status of this Rs 300 crore organisation. This will finally, pave the way for the ceding of management control to an overseas investor group, PE players or even a local multi-modal transport operator with large internal needs like a Mahindra and Mahindra or even Kishore Biyani's Big Bazaar, concerns that need to move supplies across India between vendors and retail outlets on a regular and ever increasing basis. The first salvo in the direction got fired in February 08, with Patel inducting into its fold the Singapore based $ 1 bn entity Indea Long Term Opportunities Fund with a private Equity investment at a per share price of Rs 73 per share. With FY08 EPS of Rs 4.50 and a Cash EPS of Rs 6 , Patel Integrated has fired the second salvo with the announcement of a Dividend payment of 10 per cent. This is meant to bring investor friendly practice at Patel becoming obvious and letting investors share into the profitability of the concern. Thirdly, Patel Integrated has acquired a property comprising of a plot of non-agricultural land admeasuring 7000 sq. yards together with 43,000 sq ft of construction thereon, situated at Survey No. 53B, Dhamangaon, Bhiwandi, District Thane.
This property is being convened into a state of the art Express Delivery Hub for the goods delivered by the Company and will go a long way in efficient handling of cargo as well as faster delivery to customers. This will be advantageous to the Company especially in it's express door-to-door delivery service which comprises of speedy delivery of high value items. Fourthly, Patel Integrated (PILL) has entered into an exclusive MOU with Eicher Motors Ltd., to initially purchase 225 trucks for a consideration of about Rs 20.00 Cr. for various types of vehicles ranging from 3.00 Tonners to 16.00 Tonners. Patel will also be additionally acquiring & strengthening its own Fleet in line with its Vendor Acquisition Strategy in India. The MOU also entails acquisition of additional trucks for its 126 vendors who supply about 756 vehicles, which is exclusively deployed for PILL's requirements. PILL will have an understanding with its Vendors to only use mainly Eicher Trucks for all its new routes, which is being contemplated & implemented. Further more, PILL will ensure that any trucks over 3 - 4 years will be replaced with new Eicher Trucks, for all its long haul routes. This will make Eicher Motors Ltd our preferred supplier of vehicles, for the range of vehicles manufactured by them Vehicles being purchased from Eicher Motors. Tata Motors would also supply the Balance part of the requirement which is not being met by Eicher for the lower payload vehicles more specifically the Tata ACE 1.00 Tonner & Tata 407 – 2.50 Tonner Capacity. PILL has one of the best processes of fleet and vendor management, which is attracting vendors to invest and work with them. PILL has set a vision to be among the top 3 logistics providers in India. In line with its strategy to capitalize on the longer term growth opportunity, the Company has embarked on a major growth plan to expand its fleet, add warehouses, upgrade technology and improve customer service. The Company has undergone a phase of metamorphosis and transformed itself from a mere trucking & transportation company to becoming an Express Delivery Logistics Cos in the market place, by carving a niche for itself in the Express Delivery Business under the Brand name PATEL RETAIL. The stock has been hammered down from a high of Rs 140 in Jan-Feb 2008 to about Rs 44 now, and the stock is still cum-dividend Rs 1, with the corporate carrying a ridiculously low market cap with immense growth prospects. Safe Harbor Statement: Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints. Nothing in this article is, or should be construed as, investment advice. __._,_.___ ***************************************** http://in.groups.yahoo.com/group/investwise/ INVESTMENTS IN INDIA We are low-risk, long-term investors. Stocks, mutual funds and the entire investment gamut. Only financing/investment avenues in India will be discussed. For any assistance, questions or improvement ideas, contact [EMAIL PROTECTED] **************************************************************** NEW! ==== Check our LINKS and FILES sections for a world of information. REGULARLY UPDATED. NEW! ==== Check "Tracklist" in Links and Files sections for Investment Ideas. **************************************************************** Your email settings: Individual Email|Traditional Change settings via the Web (Yahoo! ID required) Change settings via email: Switch delivery to Daily Digest | Switch to Fully Featured Visit Your Group | Yahoo! Groups Terms of Use | Unsubscribe __,_._,___ -- Posted By Ronald Chisley to Investor Forums at 9/01/2008 11:13:00 AM --~--~---------~--~----~------------~-------~--~----~ Logon at – http://investorline.co.in/blogs/news Learning Center- http://investorline.co.in/blogs/learning Mutual funds - http://investorline.co.in/blogs/mutualfunds Life Insurance - http://investorline.co.in/blogs/lifeinsurance Investor Journal - http://investorline.co.in/blogs/investor Latest News - http://investorline.co.in/blogger/?q=aggregator/categories/ Create your own Forum & Blog at - http://investorline.co.in/blogger To post to this group, send email to [email protected] Visit this group at-http://groups.google.com/group/investor-forums?hl=en -~----------~----~----~----~------~----~------~--~---
