CAG spells out quick decisions to save Air India

The Comptroller and Auditor General (CAG) has warned that unless the Government lays down a roadmap for liquidating huge debt, remove infirmities including bilaterals and gives more than a level-playing field to Air India, the airline does not have a future as a vibrant public sector entity.

According to the Performance Audit Report of Civil Aviation in India, tabled in the Lok Sabha today, the government auditor felt that that piecemeal infusion of small amount is merely going to delay the certain closure of the airline.

The Government has so far approved Rs 2,000 crore as equity investment in 2009-10 and 2010-11 while Rs 500 crore has been released as equity investment during the current financial year.

The CAG is very critical of the financing and timing of the acquisition of aircraft. “The entire operations (for both Air India and erstwhile Indian Airlines) were to be funded through debt (to be repaid through the revenue generation), except for a relatively small equity infusion. This was a recipe for disaster ab initio and should have raised alarms signals in the Ministry of Civil Aviation, PIB and the Planning Commission,’’ the report said.

The report also said that the potential benefit of the merger would have been far higher had this been undertaken before the finalisation of the massive and separate fleet acquisition exercise undertaken by Air India and Indian Airlines.

Business Standard, New Delhi, Sept 8: 

CAG questioned SCI for fixture of under market Charter rates

The Comptroller and Auditor General (CAG) has questioned the charter rates of the public sector Shipping Corporation of India, saying the fixtures were made below prevailing market rates.

'The rebranding will significantly add to the multi-location delivery strategy of Allcargo, making it more efficient and smoother'

In a rebranding exercise, Allcargo has effected a modification in its name, from Allcargo Global Logistics Limited to Allcargo Logistics Limited, and adopted a new logo and brand identity. It has also formed a Parent Company called Avashya Group. In a brief interaction with Exim India, Mr Shashi Kiran Shetty, Chairman and Managing Director of Allcargo Logistics Limited, explains the reasons for this change.
What is the objective behind this re-branding of Allcargo? What does it entail?
The company has undergone two key developments. The first is a minor modification in the name and the adoption of a new logo and brand identity for Allcargo Global Logistics Limited and the second is the formation of a Parent Company called Avashya Group.
Usually rebranding is undertaken by corporations to help them reflect a new company direction and to incorporate their expansion offerings. And Allcargo’s reason is no different. Rebranding provides us with an opportunity to combine our current traits along with those that the company aspires to attain in the coming years.
We began our journey as an LCL specialist, however with time we have grown to become one of India’s leading providers of 360 degrees logistics services offering Project Logistics, Equipment Solutions, Third Party Logistics (3PL) & Warehousing, Ship Chartering and Container Freight Stations. We realised that through the years of aggressive growth and expansion, we have outgrown our current mission and brand identity. Therefore, we decided to develop a new brand name and identity that more accurately reflects the brand attributes the company now embraces.
Every corporation also has two options to express two essential truths about itself through its logo. One is the nature of its business and, two the nature of its thinking. With our business undergoing a transformation in size, scale and stature, we have chosen to express the Unchanging Truth about our corporation - Our Thinking.
We have simplified our name, shortening it from Allcargo Global Logistics Limited to Allcargo Logistics Limited. The new Allcargo logo is an exercise to express the philosophy that is core to the way we do business. We have defined this philosophy as the inventiveness and imagination we have brought to the business of logistics. These qualities are summed up in the new tag line we have adopted: Ingenuity in Motion. Since ingenuity and motion are both infinite, we have integrated the symbol of Infinity into our new logo.
The new parent company, Avashya Group, will consolidate our companies: Allcargo, India’s leading Logistics Company, and ECU Line, Belgium, Hindustan Cargo Limited, Allcargo Shipping, MHTC and Conserve Infratech Pvt Ltd.
Every corporation has an essential truth or a quality that goes beyond the business it performs. In our quest to define this truth we asked ourselves the question: ‘If we had chosen some business other than logistics what is it that we would have brought to the table? What is that one thing that would have remained unchanged?’ And the answer was, ‘Transformation.' We believe we have not only transformed the business of logistics but also have had a transformational effect on our clients’ businesses.
We have defined Avashya as a Corporation that transforms every business it ventures into and brings joy to its shareholders, employees and customers. We have expressed this fact in our tag line: Transformations that Delight.
The symbol we have chosen for Avashya Group is a prism, an enduring symbol of transformations that delight—an object that takes white light and transforms it magically into a delightful rainbow of colours.
In future, as we expand and diversify our interests, Avashya will be committed to delivering Transformations that Delight for every new activity it embarks upon.
Will it enhance your scale of services, considering that you became a shipowner earlier this year?
The re-branding exercise encompasses the company’s increasing appetite and renewed focus on growth and expansion of its businesses across sectors. It has been our constant endeavour to tap pertinent growth opportunities and we shall continue our efforts to strategically expand our business across geographies and verticals.
How do you think it will impact the company in India as well as its global operations/aspirations?
The company currently operates out of 140 own offices in 65 countries and gets supported by an even larger network of franchisee offices across the world. With this increasingly global identity, it has become necessary for the company to build a monolithic brand name across all markets. Allcargo has embarked on this ambitious journey of consolidating its brand through its specially crafted new logo and rebranding and repositioning exercise.
The change in the brand identity is very essential as over the years, Allcargo has evolved from being a domestic logistics player to become an integrated multinational logistics solutions company. The rebranding will significantly add to the multi-location delivery strategy of Allcargo, making it more efficient and smoother.
We wish and hope that this new avatar of the company would bolster a stronger connect with our loyal customers, while also exciting new customers since it has conveyed its willingness to evolve with the ever-changing market demands and dynamics without compromising on quality, efficiency and customer satisfaction.
Does it entail raising money from the market to finance expansion plans?
No.
Will there be changes in the company’s Board?
No.
Post this rebranding, where do you see the company a year from now?
We have succeeded in building a financially healthy business with an attractive growth curve while always enhancing value to our shareholders. Despite the uncertain global economic environment, we delivered consistent, quality growth across all verticals. Our success not only reflects Allcargo’s ability to translate investments into growth but also underscores efficiency driven margin improvement. Our focused efforts coupled with uniquely positioned business strategy have helped us to deliver desired results.
Over the years, our clients have pushed us to excel in our deliverables and they’ve given us ample opportunities to broaden our service offerings, delivery and relationships. We’ve built an exceptional global network of clients which has enabled us to position ourselves at the forefront of the logistics industry in today’s challenging business environment.
Looking forward, we remain focused on maintaining our industry-leading growth while continuing to enhance efficiencies in our businesses, reinforcing our new corporate signature and endeavour of "ingenuity in motion".

Source : Exim News Service - Mumbai, Sept. 6