Allcargo Global Logistics Limited is buying the air cargo subsidiary of travel and forex company Thomas Cook (India) Limited for Rs. 8.9 crores. Allcargo would make Hindustan Cargo its independent airfreight services subsidiary. The deal would be funded through internal accruals. Hindustan Cargo reported revenues of Rs. 32 crores and a profit before tax of Rs. 1.3 crores for the year ended October 2006.
The deal is the first major restructuring initiative undertaken by Thomas Cook India. Last year it had acquired LKP Forex, Travel Corporation of India and the visa business of TTK Enterprises.
Allcargo recently acquired 100% stake in ECU Line, the world’s second largest cargo consolidator having significant global presence.
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