Patel Integrated Logisitics in expansion mode

Patel Integrated Logistics Ltd (PILL) has announced that the Company has entered into an exclusive MOU with Eicher Motors Ltd., to initially purchase 225 trucks for a consideration of about Rs 20.00 Cr. for various types of vehicles ranging from 3.00 Tonners to 16.00 Tonners. PILL will also be additionally acquiring & strengthening its own Fleet in line with its Vendor Acquisition Strategy in India.

The MOU also entails acquisition of additional trucks for its 126 vendors who supply about 756 vehicles, which is exclusively deployed for PILL's requirements. PILL will have an understanding with its Vendors to only use mainly Eicher Trucks for all its new routes, which is being contemplated & implemented. Further more, PILL will ensure that any trucks over 3 - 4 years will be replaced with new Eicher Trucks, for all its long haul routes. This will make Eicher Motors Ltd our preferred supplier of vehicles, for the range of
vehicles manufactured by them Vehicles being purchased from Eicher Motors.

Tata Motors would also supply the Balance part of the requirement which is not being met by Eicher for the lower payload vehicles more specifically the Tata ACE 1.00 Tonner & Tata 407 – 2.50 Tonner Capacity.

PILL has one of the best processes of fleet and vendor management, which is attracting vendors to invest and work with them.

PILL has set a vision to be among the top 3 logistics providers in India. In line with its strategy to capitalize on the longer term growth opportunity, the Company has embarked on a major growth plan to expand its fleet, add warehouses, upgrade technology and improve customer service. The Company has undergone a phase of metamorphosis and transformed itself from a mere trucking & transportation company to becoming an Express Delivery Logistics Cos in the market place, by carving a niche for itself in the Express Delivery
Business under the Brand name PATEL RETAIL.

Mr. Arif Patel, Executive Vice-Chairman, of the Company, says "We have had a long standing
association with Eicher. Eicher has also offered us two years unlimited mileage warranty for the vehicles which will reduce our operating / running costs, which in turn will add to our bottom line. This is part of our major expansion drive, to support by giving our customers & our Vendors the best deal in the market place.

He further stated that "the measures will have to been taken which include upgrading the existing & acquiring additional Super Express Hubs in Strategic Locations like Mumbai, South India & various other centers which control the Express Delivery Business. In addition to this there will have to be employment of additional trucks on strategic & new routes which will reduce truck operating costs and enhance efficiency, having our own Super Express Hubs for easy access and efficient service. This will also result in addition of new routes. This will have to be supported by aggressive marketing of Company’s products for brand building to bring in visibility. And all these will entail substantial outlay of funds.

We, at PILL, have one of the best VTS systems supported by GPS / GPRS in the industry, which enables us to ascertain the appropriate location of a vehicle at any given point of time. We have established a 24 X 7 controlling station at Bangalore which monitors the movement of vehicles and provide real time supports and solutions to the customers. All our vehicles, Company owned and Vendors are equipped with VTS system which offers us the following advantages :

• Real Time Tracking of the vehicles
• Optimum utilization of Fleet
• Time spent at various Check post / toll gates
• Effective management of drivers
• Help to prevent accidents by controlling speed

He also informed The Company has also been granted listing on NSE and has commenced trading on the National Stock Exchange of India Ltd, with effect from January 11, 2008, to increase the reach, accessibility & improve liquidity for the benefit of its shareholders.

Mr. A Ramasubramanian, CEO of Eicher Motors, has conveyed that - Eicher is ready to be a partner as preferred vehicle suppliers to Patel Integrated Logistics Limited on its major expansions, futuristic vision and being partnering for their transportation needs. He also mentioned, more than providing vehicles, Eicher will give holistic Logistical solutions and Services for PILL'S fleet. This association with Patel as major partner to cater their transportation requirements brings another mile stone on our relationship.

GE Capital Transportation financial services Ltd, (GECTFS), a listed Indian subsidiary Of GE, a NBFC specializing in commercial vehicle and construction equipment financing, will initially be funding Rs 12 crore towards the fleet acquisition at favorable terms.