Date:06/07/2006 URL: http://www.thehindubusinessline.com/2006/07/06/stories/2006070602030700.htm

Back DRS Group acquires 98% stake in Dilip Road Lines

Our Bureau

Chennai , July 5

The Hyderabad-based DRS Group, which owns Agarwal Packers & Movers, has acquired 98 per cent stake in Dilip Road Lines, a parcel service company in south India, for Rs 2.5 crore.

It was an all cash deal, said Mr Ramesh Agarwal, Joint Managing Director, DRS Group.

The acquisition would provide the group enhanced focus on the parcel service of cargo weight such as 50 kg and 100 kg. Dilip Road Lines would retain its identity, and the acquisition would help it to be present in the all-India market, he told newspersons.

The Rs 115-crore DRS Group plans to invest Rs 21 crore in the next six to nine months to expand the number of branches from 35 and to 60, increase the number of vehicles from 490 to 550. State Bank of India provided Rs 15 crore for the expansion, and the rest is through internal accruals. The company is targeting a Rs 225-crore turnover in 2007-08, said Mr Dinesh Agarwal, Director, South, DRS Group.