Firing on many cylinders

G.D. Raja, Managing Director, GD Foods & Beverages Pvt Ltd

The number 60, prominently written on the registration plate of the BMW 3-Series car, almost reads as ‘GD’. Sensing my inquisitive look, he said, “Yes, it’s 60, and it’s my idea,” he says, with a triumphant grin on his face. “It stands for Gunasekaran and Devaghi, my parents. All my vehicles have the same number,” says 32-year-old G.D. Raja.

Raja has a chain of businesses – commodity broking (Adventures India), instant coffee export, a chain of coffee pubs (Goodmorning Café), logistics (LRG Logistics), real estate (GD Shelters), jewellery retail (GD Gold Garden) and a play school (GD Public School).

Ask him whether he became an entrepreneur by accident or was forced upon him, he says, “No, no. It’s purely by choice.” His father, who runs a transport business in Chennai, wanted to see him as a top-level executive in a big corporate house. Despite his father’s persuasion, he chose not to take part in any campus interviews when he was doing his MBA at Bharathidasan Institute of Management, Tiruchi. “Because, I was very stubborn that I should start something on my own,” says Raja, founder CEO of the GD Group of companies.

In 2003, after he completed his MBA, he ventured into a business as planned, with an initial investment of Rs 3 lakh, which he “borrowed” from his father. He took distributorship of food products from various manufacturers.

He stocked and distributed many products from packaged atta, maida to asafoetida to provision stores from a small portion of a building in Chennai. There was an 8-10 per cent margin. As most of the products were sold on credit, and the shop owners did not pay on time, it often landed him in financial problems. “During such a crisis, my friend, Rajam, who studied with me at BIM, used to bail me out by lending money from her salary.” But, that did not go on for a long time. At one point, the situation worsened and he could not even pay the rent for the portion he had taken on lease. He quit the distribution business.

And that is when the idea of having his own brand struck him, and they (Raja and Rajam) finally narrowed down on instant coffee. It was in early 2004, when Sunrise and Bru were the dominant players in the market. When approached, Consolidated Coffee Ltd at Hyderabad readily agreed to manufacture for him. ‘Goodmorning Cafe’ was born. He positioned it as a B2B product and sold it to commercial establishments, “as this segment was not very brand conscious”.

The first month sales were Rs 8,000 but in three years, the annual turnover went up to Rs 4 crore. CCL could not meet his demand, as it had to meet its own export orders. In a tight spot again, he decided to set up his own manufacturing facility. Though many banks rejected the project because of his age and lack of collateral, thankfully, State Bank of Hyderabad agreed to extend the loan. “That was the breakthrough for us,” says Raja. In late 2011, when he was 31, he set up his instant coffee manufacturing facility at Andimadam in Ariyalur district of Tamil Nadu, with a 200-tonne-a-month capacity. After that there was no looking back.

As there were a lot of enquiries from overseas, he started exporting too. Now the unit is converted into a 100 per cent export-oriented-unit. The unit is now being expanded to manufacture 750 tonnes a month.

He extended his coffee export business by foraying into ‘coffee pubs’, under the brand Goodmorning Café. It’s a chain of five outlets, now only in Chennai.

In between, in late 2004, as he had “a lot of free time in the evenings”, he started a commodity broking firm, Adventures India. The peak business time for the Commodity Exchange is towards the evening (to coincide with the New York exchange). “I learnt that commodity market has a higher potential than the stock market, and took membership from MCX,” he explains.

He positioned his broking firm as an ‘exclusive commodity broking firm’. Due to lack of awareness, he had a tough time bringing in investors. His perseverance paid. Now Adventures India carries out transactions worth Rs 600 crore a day. “We are South India’s leading commodity broking firm with more than 200 branches across the country,” says Raja.

His logistics business too has an interesting story behind. He invited P.R. Ramasubrahmaneya Rajha, Chairman of the Ramco group, as the chief guest to inaugurate an Adventures India outlet in Rajapalayam. During their conversation, Rajha asked him to start a transport business, with a promise to award Ramco’s contracts in that region. LR Logistics was started with 30 trucks. And, now it runs 54 trucks, exclusively for Ramco.

Now his group employs a little over 300 people. “My dream is to expand the business and employ at least 1,000 people by 2015,” says Raja.

Dockwise Ltd: Sale of mv Enterprise to optimize Dockwise fleet

July 23, 2010 — Breda; Dockwise Ltd. announces the sale of type IV vessel MV Enterprise
to optimize the composition of the company’s fleet with an increasing focus on premium
cargoes. MV Enterprise has been sold to an undisclosed buyer and will be delivered to
the buyer end of July 2010.

The divestment of this type IV vessel followed from a cost-revenue analysis of the
vessels’ operation in market segments with a relatively low contribution. For that same
reason type IV vessels Dock Express 10 and 12 were sold by Dockwise in 2009. Furthermore
with MV Enterprise having completed almost 30 years of service, maintenance to meet
Dockwise’s offshore equipment standards would require additional investment in Life Time
Extension. The sale of the vessel is in line with plans previously outlined to enhance
the focus of the organization on premium projects requiring the differentiated service
potential of type I, II and III vessels. MV Enterprise will upon delivery to the buyer
be transformed into a floating power plant.

The Q2 2010 figures, to be announced on 12 August 2010, will include a (non-cash) loss
of USD 6 million in order to set back the carrying amount of the MV Enterprise as at 30
June 2010. Dockwise will receive USD 2 million from buyer which will be used for
repayment on debt.

André Goedée, Chief Executive Officer, Dockwise Ltd, said: “Dockwise intends to maintain
market leadership in the heavy marine transport business and to expand value-added
transport services, including engineering, installation and project management. These
areas of work require types I, II and III vessels which create the highest value. This
divestment optimizes the composition of the Dockwise fleet and increases focus on the
premium end of the business.”

Contact: Fons van Lith

+31 651 314 952/+31 76 5484 116

Fons.van.lith@dockwise.com mailto:Fons.van.lith@dockwise.com

About Dockwise Ltd / The Dockwise Group

Dockwise Ltd., a Bermuda incorporated company, has a workforce of more than 1,200
people, both offshore and onshore. The company is the leading marine contractor,
providing total transport services to the offshore, onshore, and yachting industries, as
well as installation services for extremely heavy offshore platforms. The Group is
headquartered in Breda, The Netherlands. The Group’s main commercial offices are located
in The Netherlands, the United States, and China, with sales offices in Korea,
Australia, Brazil, Russia, Singapore, Malaysia, Mexico, and Nigeria. The Dockwise Yacht
Transport business unit is headquartered in Fort Lauderdale and has an office in Italy.
The Dockwise Shipping network is supported by agents in Japan, Norway, Argentina, and
Italy.

To support all of its services to customers, the group also has three additional
engineering centers in Houston, Breda, and Shenzhen, which manufactures specific
motion-reduction equipment, such as LMU (Leg Mating Units) and DMU (Deck Mating Units).

Dockwise shares are listed on the Oslo Stock Exchange under ticker DOCK and on NYSE
Euronext Amsterdam under ticker DOCKW.For more information, visit our website at
www.dockwise.com http://www.dockwise.com/

This information is subject of the disclosure requirements acc. to §5-12 vphl
(NorwegianSecurities Trading Act)

UPDATE 1-Australia’s QR float plan on track – state gov

July 6 (Reuters) – The Queensland state government vowed on Tuesday to press ahead with the float of its QR National coal transport business despite the postponement of another major Australian IPO and increasingly volatile equity markets.

Germany’s Bilfinger Berger (GBFG.DE) earlier announced it would delay the planned $1.1 billion float of its Australian unit Valemus until early next year due to weak markets. [ID:nLDE6641DX]

“The government notes the decision by Valemus’ parent company. It doesn’t have any direct bearing on our plans to float QR National,” Queensland treasurer Andrew Fraser said in a statement emailed to Reuters.

Queensland state plans an initial public offering of the A$7 billion ($5.88 billion) QR National in the fourth quarter of this year. It would be Australia’s largest float since telecoms company Telstra (TLS.AX) was privatised in states in the 1990s.

The Valemus float, scheduled for this month, was seen by many in the market as testing the appetite for a multi-billion dollar pipeline of IPOs which bankers say have been put on hold due to choppy markets.

“There’s plenty of attractively priced companies out there, so we don’t need to pay a premium for new ones. Therefore vendors have to reset expectations, or are resetting expectations,” said John Grace, portfolio manager at Ausbil Dexia.

The Queensland government pointed out QR National’s leverage to the mining sector and growing demand from Asia for Australian resources differentiated it from Valemus. Fraser said the government had received “significant interest” in the business from potential investors in recent months.

A source close to the transaction said the float timetable had not changed. The offer documents for the IPO were due to go out to investors in August or September.

A group of 13 coal miners, led by BHP Billiton (BHP.AX), Rio Tinto (RIO.AX) and Xstrata (XTA.L), have sought to derail the IPO plans by making their own A$4.85 billion cash bid for the rail-track network in the country’s biggest coal state.

They argue that a vertically-integrated model where the company owned both the haulage service and the tracks could hurt coal transport efficiency and competition. (Reporting by Michael Smith and Sonali Paul; Editing by Narayanan Somasundaram and Ed Davies)

RPT-Australia’s QR float plan on track – Queensland gov

July 6 (Reuters) – The Queensland state government said on Tuesday there were no changes in its IPO plans for QR National coal transport business despite the postponement of Bilginger Berger’s (GBFG.DE) Australian unit IPO.

The IPO of QR National estimated at A$7 billion($5.88 billion) is the largest scheduled for Australia this year.

“It doesn’t have any direct bearing on our plans to float QR National,” Queensland Treasurer Andrew Fraser said in a statement. (Reporting by Michael Smith; Editing by Narayanan Somasundaram)

Australia’s QR float plan on track – Queensland gov

July 6 (Reuters) – The Queensland state government said on Tuesday there were no changes in its IPO plans for QR National coal transport business despite the postponement of Bilginger Berger’s (GBFG.DE) Australian unit IPO.

The IPO of QR National estimated at A$7 billion($5.88 billion) is the largest scheduled for Australia this year.

“It doesn’t have any direct bearing on our plans to float QR National,” Queensland Treasurer Andrew Fraser said in a statement. (Reporting by Michael Smith; Editing by Narayanan Somasundaram)

Tata’s Nano, one man’s gain, another’s loss

Sanand (Gujarat)/Singur, Mar 21 (ANI): As Tata Motors is all set to launch Nano, the world’s cheapest car, on Monday, residents in Sanand, where Tata’s new Nano plant is being set up, are upbeat at the prospects.

Residents were excited, looking forward to the jobs it would create.

“The direct benefit of the project is the employment that it will create, but there are several indirect benefits. It will create opportunities for the transport business, hotel industry and all other small businesses will get a fillip,” said Ravubha Vaghela, a businessman.

But there were others for whom the wait seemed to be getting longer.

“The project has definitely put Sanand on the world map, but I don’t think the workers and farmers will be much benefited out of it,” said Bahadurbhai, another resident.

Back in Singur, the mood is sombre despite the fact that the opponents of the project achieved their goal by driving out the Tata Motors project.

“It is shocking and very sad. So many boys and girls took training and were dreaming of jobs. There were proposals for huge development. Singur residents have been deprived of all that,” said Srikanto Chatterjee, a resident.

Tata Motors Ltd moved in its ultra low-cost Nano car to Sanand in Gujarat following violent protests at Singur in West Bengal.

The plant to be built at Sanand, near Ahmedabad, is located on about 1,100 acres, and will have an initial capacity of 250,000 units, which can be expanded to up to 500,000 cars per year. (ANI)