Mumbai Capital

Inland to invest Rs 400 cr to expand its logistics infrastructure

To scale up its logistics infrastructure in western and southern India, Inland World Logistics Ltd (formerly Inland Road Transport), part of the Rs 2,200-crore (in turnover) Inland Group and a leading player in the logistics space, is planning to invest Rs 400 crore to set up logistics parks and Container Freight Stations (CFS) near Mumbai, in Chennai and Gujarat.

“Having started as a courier company 35 years ago and grown into one of India’s leading logistics players, we have now decided to focus on building logistics infrastructure. We have already started work on a logistics park at Ahmedabad and another logistics park is under approval at Bhiwandi (near Mumbai),” Praveen Somani, Director (Strategy & New Business Development), Inland World Logistics told The Hindu .

The logistics park at Ahmedabad is coming up on 100 acres and involves an investment of Rs 125 crore, he said, adding that the one at Bhiwandi will be housed on 106 acres.

“The logistics park at Bhiwandi will come up in two phases. The first phase will come up on 56 acres and involve an investment of Rs 53 crore. It all depends on when we get approval from the government,” Mr Somani said.

“We have also started scouting for land to set up Container Freight Stations (CFS) in Maharashtra, Gujarat and Chennai. We will require 10 acres of land at each of these locations. These projects should be finalised in 2016. We have plans to invest Rs 400 crore in three years to set up logistics parks and CFS units,” he added.

The company plans to fund this through internal accruals and debt. “We are also considering mobilising funds from private equity investors and we may go for an initial public offering (IPO) in three to four years,” Mr Somani said.

Inland World Logistics reported a turnover of Rs 783 crore in 2014-15 and has been growing by 22 to 25 per cent year on year. It has 15 lakh sq ft of warehouse space at 157 locations including at Vapi, Bhiwandi, Kolkata and Delhi and operates a fleet of 151 trucks, 11 pullers and 126 hydraulic axles modular trailers which are used for movement of very heavy equipment to project sites across the country.

The company has also entered the third party logistics space whereby it provides end-to-end solutions to its clients, starting from sourcing of raw materials to delivery of finished products to distributors.

Commenting on the reason behind the growth in demand for logistics, Mr Somani said, “People are shifting industry for tax planning purposes and the impact of the e-commerce sector is adding to the demand. Besides, in India manufacturing is concentrated in western and northern parts of the country and things need to move to the rest part India and international trade is also increasing. All these factors are fuelling demand for logistics service providers.”



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Printable version | Jan 19, 2021 9:26:09 AM | https://www.thehindu.com/news/cities/mumbai/business/inland-to-invest-rs-400-cr-to-expand-its-logistics-infrastructure/article7994715.ece

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