KOLKATA: TM International Logistics Ltd (TMIL) a 51:49 joint venture between Tata Steel and IQ Martrade Gmbh Germany, is exploring the possibility of making an initial public offer (IPO) to part-fund its Rs. 350 crore investment plan over the next three years.

S. C. Saxena, TMIL Managing Director, told reporters that board approval would be sought within the next six months, for making an IPO of about Rs. 150 crores. This was among the funding options being examined by the management besides bank loans.

Earlier, addressing a press conference he said the investment was necessary to catapult TMIL's turnover to Rs. 1,000 crores by 2008-09 from Rs. 206 crore in 2004-05. TMIL, which was formed in January 2002, had a Rs. 18 crore equity and a Rs. 26.30 crore profit before tax in 2004-05. While there were 12 to 15 companies operating in the organised logistics sector, Mr. Saxena said, TMIL was offering a comprehensive range of services, including port operations, chartering, customs clearance, freight forwarding and shipping agency.

The focus areas identified for the next three years were warehousing in India and abroad, including inland container depots and container freight stations, acquiring terminal at various locations on the east and the west coast and augmenting existing infrastructure at ports. The fledgling company now had one terminal in Haldia.

TMIL was keen to strike strategic alliances with companies in its various operational areas and talks have been held with two-three companies in warehousing, he said. The company was also keen on having terminal operations in Sri Lanka, Bangladesh and Myanmar. Mr. Saxena said while the company was initially set up to offer integrated logistics services to clients, including the major promoter Tata Steel which now accounted for majority of the business volume, this trend would be gradually reversed.

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