Toll establishes Indian foothold with BIC stake

Toll will initially acquire 40% of BIC Logistics, with the option of moving to majority and beyond over the next two years.
Toll Group managing director Paul Little had flagged entry into the Indian market for at least 18 months before this latest move was unveiled.
“This acquisition makes Toll one of the most significant foreign investors in India’s transport and logistics industry,” Mr Little said.
“BIC is a great fit for our existing operations in India – it represents an opportunity to enhance both the scope and scale of our operations and allows us to be one of the few foreign companies with critical transport fleet capability.
“While BIC will continue to operate as an independent business it will be aligned with our existing operations.
“BIC’s strength in northern India naturally balances our existing business strength in the south and the road, rail and air network leveraged by BIC will enhance our ability to provide total integrated logistics service solutions throughout India.”
BIC provides road, rail and air transport stretching across India, using a fleet of modern company-owned road vehicles and operating at more than 80 offices and sites, Toll said.
The company’s annual revenue exceeded Rupee1.3bn ($37m) for the year ended March 31.
“The investment in BIC will be immediately EPS accretive,” Mr Little said.
“It’s fair to say that global economic conditions are continuing to open up opportunities for the Toll Group given our strong balance sheet and diverse logistics offering.”