India’s container ports handled 11.58 Million TEUs with a growth rate of 6.1 % for FY 16, with a modest growth rate during past few years. Western Coast of India plays a major role in container growth rate as it contributes almost 73% of the overall Indian container market. There are around 200 ports in India including 12 major ports which handles almost 95% of trade volumes in India.

During the last 2-3 years, Central government is giving lots of emphasis on developing infrastructure which also include proposal to develop inland waterways and coastline shipping. Major ports are expected to increase their capacity, infrastructure and better connectivity with rails and roads which will in turn benefits the container market and related services.

Transaction

The board approved the scheme of amalgamation of Navkar Terminal limited (NTL) into Navkar Corporation Limited (NCL), with appointed date 1st March 2016, former being wholly owned subsidiary of NCL. Since all equity share are held by NCL and it nominees no shares are allotted to equity shareholders.

Redeemable preference shareholders of NTL are allotted Redeemable Preference Shares of NCL in 1:1 ratio, all preference shares are held by promoter group which are redeemable at par in March 2025.

About the company

Navkar is amongst India’s leading Container Freight Station (CFS) operator with a capacity of 3,10,000 TEUs (Twenty-foot equivalent units) per annum as on Mar-16. Company also owns Private freight terminal (PFT) which allows them loading – unloading of train cargo container and transport domestic cargo to and from inland destination on the Rail network.

NCL is headed by Mr Shantilal J Mehta chairman and Managing Director and company is listed on BSE and on NSE.

NCL was established in the year 2008, and as of Mar 16 company has 573 Trailers for transporting cargo between their CFSs and JNPT, 92 Refer plug points for storing cargo at a controlled temperature, 5 lakh Sq. ft. aggregate area of warehouse which include 60,872 sq. ft. of bonded warehouse and 1,18,000 sq. ft. for the consolidation of “Less Than Container Load” (“LCL”) containers.

With increasing global scenario and EXIM trade along with the port expansion, India’s containerisation volume is expected to be double up by 2020, by keeping that in mind company is planning to triple its capacity to 10,52,000 TEUs over the next couple of years. Increasing capacity at Somathane CFS which will take care of increased container traffic demand at JNPT. Setting up ICD and logistic part at Vapi to carter needs of volume generated from South Gujrat industrial belt, being only ICD in that region will give them a competitive edge and value to its customer.

Financials

Navkar Corporation Limited is currently having a market cap of over Rs 3,100 crores, total revenue stood at Rs 378.8 Cr with a good operating profit margin of 44.84% & Net Profit Margin of around 27% for FY 16-17.

During the year 2015 company raised

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