Hubballi-based logistics major VRL Logistics Ltd., (VRL) has set aside a capex of ₹697 crore during the current fiscal to replenish its ageing fleet which is more than 15 years old.
As per the proposal, during FY24 VRL plans to purchase 1,560 truck chassis from Ashok Leyland Ltd. (ALL) and 107 units from Tata Motors and would construct truck bodies inhouse/outside as feasible.
At the same time, it will withdraw 1,220 goods transport vehicles that have been in operations for more than 15 years. As of March 2023, VRL had 5,717 vehicles, it said in a filing.
On Monday, ALL announced that it had received an order from VRL for 1,560 trucks consisting of AVTR 3120 and AVTR 4420 TT models. These trucks have all the advanced features to bring more efficiency and profitability to VRL’s expanding fleet, it said in a statement.
The trucks will come fitted with the latest in features and technology and help VRL to have reduced maintenance time, fewer stop overs, and higher efficiency resulting in better uptime and increased profitability.
VRL said that the capex is spread over 12 months and is expected to help it meet its near-, medium-term business demand and reduce dependence on hired vehicles. The capex will be met through bank loans and internal accruals.
It is estimated that VRL would lose owned fleet capacity of up to 13,290 MT owing to scrapping of old vehicles. The proposed capacity addition would be about 16,802 MT. The vehicles being added include prime movers and trailers with payload capacity of up to 32 MT.
