Balmer Lawrie inks MoU with CWC for cold chain logistics

NEW DELHI : Balmer

Lawrie & Co. Ltd has signed a Memorandum of Understanding (MoU) with Central Warehousing Corporation (CWC) for utilising storage and warehousing spaceofCWCforprovidingcoldchain logistics, general warehousing and other ancillary services. This would be valid for a period of ten years from thedateofsigningMoU.

As part of the association, Balmer Lawrie and CWC will collaborate to leverageeachother’scapabilitiesand complement each other to provide servicestocustomersinkeepingwith thegrowingdemandsofthesegment. Both the organisations would work together to strengthen and expand their foothold not only in cold chain logistics but also general warehousing and distribution panIndia,saidapressstatement issuedbythecompany.

The association with CWC will give a fillip to Balmer Lawrie’s cold chain business unit’s aspiration of achieving over Rs. 100 crore by 2027 and also setting up mini temperature controlled warehouses having a capacity of 1,500 to 2,000 pallet position in Tier-II and -III cities across the country. It would also help address the supply gap in the cold chain logistics segment and will significantly contribute to the country’s economy, Adika Ratna Sekhar, Chairman & Managing Director, Balmer Lawrie, saidinthe statement.

According to Amit Kumar Singh, ManagingDirector,CWC, coldchain business is new to CWC and the synergy of the expertise of Balmer Lawrie in the cold chain field and the reach/presence of CWC at the most strategic locations will change the dynamicsofcoldchainlogisticsinthe timestocome.

“We have 458 warehouses across the country besides other infrastructure and Balmer Lawrie can leverage them to explore mutually beneficial business opportunities,”hesaid.

Top Ship Leasing companies make a beeline for GIFT City

MUMBAI: Multiple shipping companies, including those with Indian ownership, are looking to set baseinGujaratInternationalFinance Tec-City(GIFTCity),attractedbythe financial benefits and fewer regulatory compliances, which bring it at par with international shipping hubslikeDubaiandSingapore.

The International Finance Services Centres Authority (IFSCA) had implemented a framework for ship leasing last August to attract the multi-billion-dollar industry to India. Now, at least eight companies are in various stages of exploring or receiving authorisation to set up ship leasing business at GIFT City, said peopleintheknow.

These include global shipping major Foresight Shipping as well as Alphard Maritime Group, Bothra Group, Gandhidham-based ACT Group through its Singapore-based subsidiary Propel Shipping, and steelmaker ArcelorMittal Nippon SteelIndia,amongothers.

The key draws for these companies to GIFT City are the absence of a withholding tax on remittance of payment for ship leasingandacorporatetaxholidayfor the first 10 years. The 10% withholdingtaxleviedinIndiamadeit unviable for ship owners and lessors tosettheirbasehere,expertssaid.

Otherbenefitsdrawingcompanies toGIFTCityincludefewerregulatory hurdles in terms of permits and licenses. Compliance burden has been a key reason for shipping companies to opt out of setting a base inIndia,expertssaid.

The Gujarat-based financial district also offers lower operating costs including cheaper wages when compared to other international shippinghubs.