The Hindu : Business : DRS group buys out Dilip Road Lines

Online edition of India's National Newspaper
Thursday, Jul 06, 2006

Business

Business

DRS group buys out Dilip Road Lines

Special Correspondent

CHENNAI: The Hyderabad-based DRS group (turnover: Rs. 115 crore in 2005-06) has acquired 98 per cent stake in Dilip Road Lines (DRL), a well-known parcel service company in South India. It is an all cash deal for Rs. 2.50 crore.

Dilip Road Lines has notched up a turnover of Rs. 8.70 crore for the year ended March 2006. The DRS group has reported a net profit of Rs. 3.50 crore 2005-06. The net profit of Dilip Road Lines stands at Rs. 50 lakh. Agarwal Packers and Movers, a leading household transport unit, is among the five entities in the group. DRS Transport (P) Ltd., DRS Institute of Logistics, DRS Shipping and Air Cargo (P) Ltd. and DRS International School are the other units in the group.

Addressing a press conference here on Wednesday, Ramesh Agarwal, Joint Managing Director, said the acquisition of Dilip Road Lines would help the group, which had a strong presence in the north, west and east, to emerge as a national player. The group, he said, would invest around Rs. 21 crore over the next few quarters to expand the network of branches from 35 to 60 and increase the fleet size from 490 to 550 vehicles.

A part of the fund needs — Rs. 15 crore — would come as loan from State Bank of India. The balance would come through internal generation, he added.

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