DRS has already has roped in Kotak Mahindra Bank’s India Growth Fund to pump in Rs 100 crore to set up logistics parks across six cities where land has already been acquired.
HYDERABAD: Hyderabad-based DRS Logistics is revving up plans to become a Rs 10,000 crore company by 2010.
Better known by its brand name Agarwal Packers and Movers, DRS has already has roped in Kotak Mahindra Bank’s India Growth Fund to pump in Rs 100 crore to set up logistics parks across six cities where land has already been acquired.
The Rs 200 crore company has also applied to the director general of civil aviation (DGCA) to kick off an air cargo airline in the country. Besides, it is in talks for leasing two aircraft to operate services in six sectors, covering the four metros and Bangalore and Hyderabad, A K Agarwal, director, marketing, DRS Group, said.
Blue Dart is the only logistics company in the country that currently operates its own air cargo planes.
DRS, which owns warehousing infrastructure in Gurgaon, Hyderabad, Mumbai and Chennai totaling 1.5 million sq ft in space, is looking to add an equal amount of space next year expanding to a total of six cities to set up logistics parks, Agarwal added. It will invest Rs 150 crore on this.
Speaking about the investment in the company, Nitin Deshmukh, head, private equity, Kotak Mahindra Bank, said logistics was sitting on the cusp of rapid growth.
With manufacturing and retail, the main feeders for the logistics sector, showing signs of double-digit growth, the future is bright future, he felt.
According to some estimates organised logistics is projected to grow at a CAGR of 25% between 2006 and 2011 while less than 10% of the industry is currently involved in third-party logistics.
However, the Indian industry spends 13% of the GDP on logistics against the global benchmark of 10-11%. Of this nearly 40% is due to transportation alone which is an encouraging sign for the industry.
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