Gati eyes exit

A diversified Indian logistics provider appears to be moving forward with plans to abandon the maritime shipping industry under a broader bid to slash debt and stem losses.

On the heels of its latest earnings report Gati’s finance director, Sanjeev Jain, outlined the final phase of the initiative in an interview with Live Mint.

Jain reminded the publication that his company started carving up its shipping division last year and said the remaining 48% stake will likely be sold by the end of 2014.

The executive, who noted Gati has identified potential buyers, also pointed out that the operator sold another boxship during the quarter that ended on 30 June in a move that left the group with only one vessel.

“The board has mandated us to exit from shipping business,” Jain told Live Mint after reporting a consolidated net profit of INR 150m ($2.4m) for the fiscal first quarter, which is more than double the gain carded 12 months prior.

“We have already sold four ships in one-and-a-half years. We are in talks with two-three shipping companies to sell our remaining stake of 48%. We expect to conclude the deal in the next two quarters.”