Global supply chain services company Arshiya International would develop 3 warehousing hubs in central, south and east India and 35 sub-hubs in the country.
With 35 sub-hubs, aims for pan-India presence by 2012
MUMBAI: Global supply chain services company Arshiya International would develop 3 warehousing hubs in central, south and east India and 35 sub-hubs in the country and the Middle East by end of 2012 under the second phase of its expansion plans.
Arshiya will invest Rs 3,000 crore in port-based infrastructure and special warehousing zones, as part of phase one expansion, to be completed in the 3 years. This includes setting up two free-trade warehouse zones (FTWZ) hubs in Mumbai and Greater Noida, and developing a similar hub and three sub-hubs in Sohar, Oman.
Based on the same concept of a warehousing hub and sub-hubs, the phase two expansion would give Arshiya an all-India presence.
Ajay Mittal, chairman, Arshiya International, said, “The marketing study for phase two are completed but since the exact locations for FTWZs are still under consideration, putting a figure to it would be difficult.”
To give shape to its FTWZs, the company has tied up with the Singapore government-owned Jurong International for master planning, architecture and engineering of these FTWZs. The entire planning and consultancy spend is expected to be about Rs 100-120 crore.
These hubs would be spread over 200-250 acres each, while the sub-hubs would be smaller units in 15-20 acres. The land
acquisition for the FTWZ near JNPT in Mumbai is near completion and construction is likely to start by April this year. Work for the one in Greater Noida will start by June 2008.
Additionally, to support its two FTWZs, Arshiya will also operate container trains on the Western and Northern Capital Region route. The company has applied for a rail licence and is spending Rs 110 crore in acquiring 11 rakes in phase one.
“To start with, we expect our rail business to contribute about 7-8% of the company’s total income, although we only see it come in 2009-2010,” Mittal said. Arshiya is also putting up its own truck fleet in the Middle East by acquiring 150-200 trucks. “There is no railway
network in Middle East for freight and additionally has a shortage of trucks, because of which we face a major problem in transporting goods. So, we are acquiring our own fleet to support our business there,” MIttal said.
It had recently raised Rs 350 crore through a QIP and Rs 100 crore early last year through private placement.
s_archana23@dnaindia.net
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