INTERVIEW-UPDATE 1-Australia's Toll: Asia ops reviving

* Toll CEO optimistic about Asia business

* Expects to complete a few more acquisitions before end-Dec

* Aims A$5 bln revs from Toll Global Forwarding in five years

By Denny Thomas

SYDNEY, May 28 (Reuters) - Toll Holdings Ltd (TOL.AX), Australia's top logistics group, sees business reviving in China and India, though its home market is struggling in a recession, and it plans more small acquisitions this year.

"We have seen some stability come back. We are cautiously optimistic about China in particular, and I think there are some good signs coming out of India as well," Managing Director Paul Little said in a phone interview from Toll's headquarters in Melbourne on Thursday.

Little expects to complete a few more small acquisitions in Asia this year, though there are fewer opportunities in Australia and New Zealand, he added.

Toll shares fell 3.2 percent to A$6.89 on Thursday, but are still up nearly 12 percent so far this year, compared with a 0.9 percent rise in the benchmark S&P/ASX 200 index .AXJO.

Toll, which earns a fifth of its revenues from Asia ex-Australia/New Zealand, has ambitious plans for its Toll Global Forwarding (TGF) business, targeting revenue of about A$5 billion

($3.9 billion) over the next five years, from A$1 billion now.

The low-margin TGF business, which is the global freight forwarding business, suffered significant downturn late last year as a result of global recession.

"Global forwarding business has found a natural bottom. We anticipate a gradual improvement there, but certainly it won't come back as quickly as it went down," Little said.

Toll, which has concluded at least 70 acquisitions over the past two decades, is sitting on about A$1 billion in cash and undrawn debt facilities.

Earlier this month, Toll took full control of its China joint venture ST-Anda Logistics and bought a 40 percent stake in BIC Logistics, a transport group in India.

"We are still very ambitious to grow global forwarding and contract logistics businesses," Little added.