RedSun set to drive Gatis supply chain biz

Written by Kavitha Venkatraman | Chennai | Updated: Dec 2 2010, 07:16am hrs
Gati is eyeing big-ticket orders in the supply chain space driven by its pure play, end-to-end logistics solution subsidiary RedSun Supply Chain Solutions. The company is gunning for large orders from industrial and other customers for end-to-end, and sophisticated logistics services. Analysts expect the new initiative by the company to add traction to Gatis top-line and bottom-line numbers in the forthcoming quarters. Kotak Securities, in a recent company report, has said Gati had floated RedSun to have a more focused approach towards the fast growing supply chain solutions business. The idea of RedSun is to offer both cold and ambient supply chain solutions. This move would allow Gati to bring into alignment its existing subsidiary and the Kausar brand as a product offerings under the new division. Under RedSun, it would offer cold chain solutions including temperature sensitive storage and product life cycle management, the brokerage house said.

Gati forayed into cold chain logistics business with acquisition of Delhi-based Kausar with a 99.76% stake way back in 2007, and since then strengthened its business.