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Sical Logistics Limited has sold Vanagaram Refractories Works Industries Ltd (VRW) to a key entrepreneur in the real estate industry in Tamil Nadu. The sale was completed for a consideration of Rs 40.79 crore for an area of 8.68 acres.
VRW was engaged in the business of manufacturing refractory bricks. These bricks are used as lining for furnaces/ kilns/ ovens in cement, steel and other process industries. Its manufacturing unit was located at Vanagaram village, Ambattur Taluk and Tiruvallur district.
The sale progressed in three phases - the first phase was the settlement with the labour. The second sale involved sale of plant and machinery as scrap for about Rs 2 crore and the third phase involved the sale of the land.
"This is a conscious decision to move out of the non-core businesses of Sical. Going ahead, we want to direct our funds and efforts towards the logistics sector where our core competencies lie. Sical is focused on becoming the country's largest integrated multimodal logistics player," said Ashwin Muthiah, chairman, Sical Logistics.
VRW had been merged with MAC Industrial Products Ltd in 1994 which was later merged with Sical Logistics Limited in 1996. The operations of this division were both capital and labour intensive. The management took the decision to hive off this unit since it was felt that the investment could be directed to its logistics business. As part of its long-term strategy, Sical has been in the process of demerging its non-logistics businesses to focus on its core business of logistics.
Sical Logistics Ltd is India's leading provider of integrated multi-modal logistics for bulk and containerised cargo-port logistics; inland logistics; container logistics; and offshore logistics. Sical's delivery network includes an exclusive walk-in berth at Chennai for ships carrying bulk cargo; a container terminal at Thoothukudi, 1.9 million square feet of storage across over 100 warehouses; owned and regularly contracted fleet of over 2,400 transport vehicles, and container freight stations at four locations across India. Sical's FY 2005-06 revenue was Rs 9.60 billion on Rs 301.9 equity capital.
R Rangaraj
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