Sical Logistics Ltd announced on Monday (January 12) that it has received a letter of acceptance from South Eastern Coalfields Ltd (SECL) for a major project worth ₹4,038.00 crore, including GST. The contract represents a significant business win for the integrated logistics service provider.

Project Details

The contract pertains to the Porda Chimtapani open cast project located in Raigarh, Chhattisgarh. The project specifications are outlined below:

Sical Logistics will execute the project according to the specifications outlined in the tender. The company confirmed that the promoter, promoter group, and group companies do not have any interest in SECL, and the contract is not classified as a related party transaction.

Company Background and Operations

Established in 1955, Sical Logistics operates as a leading integrated logistics service provider in India. The company was acquired by Delhi-based Pristine Malwa Logistics Park Pvt Ltd in 2023, marking a significant ownership change.

The company's major operations include:

• Mining projects for Northern Coalfields Ltd in Madhya Pradesh
• Mining operations for Mahanadi Coalfields Ltd in Odisha
• Dredging operations through a cutter suction dredger deployed on India's east coast
• Container freight stations and warehousing services
• Third-party logistics (3PL) services

Recent Project Achievements

Sical Logistics has demonstrated expertise across multiple sectors. The company currently operates a cutter suction dredger conducting dredging operations at Ramayapatnam Port. In 2022, it successfully completed a dredging project for ONGC pipeline construction in Yanam, Puducherry.

Beyond its core mining and dredging operations, the company has strategically expanded into container freight stations, warehousing, and third-party logistics services, diversifying its revenue streams.

Market Performance

Following the contract announcement, Sical Logistics shares performed positively in Monday's trading session:

The stock's positive movement reflects investor confidence in the company's ability to secure and execute large-scale infrastructure projects.

Sical Logistics has secured a major contract worth ₹40.38 billion from South Eastern Coalfields Limited (SECL), marking a significant business development for the logistics company. This substantial contract award demonstrates the company's strong positioning in the coal transportation and logistics sector.

Contract Details

The contract details are summarized below:

Strategic Significance

This contract represents a major milestone for Sical Logistics, significantly expanding its business operations in the coal sector. South Eastern Coalfields Limited, being a prominent subsidiary of Coal India Limited, is one of the largest coal mining companies in India, making this partnership strategically important for the logistics provider.

The substantial value of ₹40.38 billion indicates the scale and duration of the logistics services to be provided, which is expected to contribute meaningfully to the company's revenue stream and operational capacity utilization.

Business Impact

The contract award is likely to strengthen Sical Logistics' market position in the coal transportation segment and enhance its credentials for securing similar large-scale contracts in the future. This development showcases the company's capability to handle major logistics operations for significant players in the coal industry.

The partnership with SECL aligns with Sical Logistics' focus on providing comprehensive logistics solutions to the mining and industrial sectors, further establishing its presence in this specialized market segment.