Q: Let’s talk about some of those acquisitions as well. Very interesting acquisitions one in the form of ECU Line, the other one being TransIndia Freight Services––I believe ECU Line even contributed about 71% to your consolidated topline. What are the growth prospects from those two businesses going forward and what sort of traction in terms of percentage growth do you see over the next few years?

A: In this market, we do not really anticipate a significant growth in an organic way. Obviously, as the markets are melting down and we believe that quite a few companies will be under pressure and we are keeping our eyes and ears open to see what opportunities we have in terms of value buying to look at any other future acquisitions in the overseas market and also in the Indian market. To put the figures in a right perspective, the revenue contribution for ECU Line is close to 90% and the contribution on the bottomline is close to about 40-42%.

Q: Where do you see revenues coming from, which stream do you see revenues coming from the maximum?

A: We are initiating lot of efforts in consolidating our business also in the container freight station (CFS) and also the equipment business has grown significantly in this year, but going forward, I am sure there will be some impact on that business.

But we are looking at good opportunities where we can consolidate in the marketplace both in India and overseas. So that’s where we see the biggest opportunity going to be for us because we have cash, we have very low leveraged position in the company and we are actively looking at how we can grow inorganically.

Q: We are getting clear signs now of a slowdown not only in India but across the globe as well. How does it work for a logistics company like you? We have seen freight rates come under pressure; the Baltic Dry Freight Index has also corrected about 90% from its high. Does this call for any price renegotiations? Do your revenues, topline and realisations, in general, come under pressure?

A: If you look at our business, we don’t have any long-term contracts with any of our vendors. Our rates are pretty flexible, as the markets move up or down, we are in a position to negotiate our rates, and similarly, our sell rates to our customers are also pretty dynamic as the markets move up or down.

So, what we have experienced in these last several years in the business is that our margins normally stay approximately the same. There may be some minor adjustments up or down. But overall, our experience is that our margins don’t really come under tremendous pressure. Of course, this is a time for every company to look at how one can tighten the belt, and ways and means by which one can reduce his operating costs and other costs related to the organisation. We are actively looking at all the opportunities that are available.

Q: How are you monitoring the fluctuating crude oil prices right now? What is the capex that you have laid out for yourself for your expansion?

A: The capex is definitely under the scanner today. We need to be very careful in what we do. It is important to sit on cash and look at our strategies once again, and look at what is good for the company in the short-term and medium-term with the scenario having changed dramatically over the last few months.

Q: You said the capex is under scanner. So, will the Rs 500 crore in your Greenfield projects not now come under investment? Is there any significant scaling back, and are there any numbers you can put to that?

A: No, we have not revised anything. We are looking at it closely. This is a time when one needs to look at their capex plans. We are currently reviewing all the projects. We have not revised the numbers as yet.