After its plans to diversify into shipbuilding, state-run Shipping Corporation of India (SCI) is now looking at entering the $60 billion logistics business. As a first step, SCI would appoint a consultant to guide it through the process of entering the business.
According to industry data, the cost of surface logistics is estimated to be between 9 and 23 per cent of the GDP. Manufacturing and marketing companies spend about 6 to 36 per cent of sales on logistics.Besides SCI, Shreyas Shipping and Essar Shipping have ventured into logistics business. In 2007-end, SCI Chairman S C Hajara had said the shipping major was interested in setting up two shipbuilding yards with a capacity of 3 lakh dead weight tonnes and the investment could be up to Rs 5,000 crore.The two yards could be one each in East and West Coast. The shipping company has since submitted expression of interest to government for setting up these yards.The company is in talks with partners for its shipyard venture and it would take a decision about a partner within 2-3 months.
According to industry data, the cost of surface logistics is estimated to be between 9 and 23 per cent of the GDP. Manufacturing and marketing companies spend about 6 to 36 per cent of sales on logistics.Besides SCI, Shreyas Shipping and Essar Shipping have ventured into logistics business. In 2007-end, SCI Chairman S C Hajara had said the shipping major was interested in setting up two shipbuilding yards with a capacity of 3 lakh dead weight tonnes and the investment could be up to Rs 5,000 crore.The two yards could be one each in East and West Coast. The shipping company has since submitted expression of interest to government for setting up these yards.The company is in talks with partners for its shipyard venture and it would take a decision about a partner within 2-3 months.
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