Transmart, a third-party logistics company, has plans to set up 5-10 warehouses in this financial year for an estimated investment of Rs 500 crore.
Investment will be on 10 depots this fiscal
MUMBAI: Transmart, a third-party logistics company, has plans to set up 5-10 warehouses in this financial year for an estimated investment of Rs 500 crore.
This is a part of the company’s plan to set up a network of 30-40 warehouses in the next three years to support the inventory requirements. Besides, the company has plans to set up around 10 smaller warehouses.
Transmart, promoted by the Jani family of the SCA Group of Companies and former promoters of Blue Dart Aviation, would fund the investment through promoter’s equity and would look at debt financing in the near future.
Bhairavi Jani, executive director and CEO, Transmart, said, “As part of funding, we could look at divesting equity to a strategic investor at a later stage, but nothing has been decided yet. Currently, we would use promoter’s equity.”
The company has set up its first multi-purpose warehouse in Bhiwandi in Mumbai and has acquired land near Jawaharlal Nehru Port. Transmart is confident to start facilities at Bangalore, Delhi and Chennai this year. Land acquisition at Hyderabad, Ahemdabad, Chandigarh, Ludhiana and Kolkata is in progress.
“Most of the facilities to be constructed this year would be large ones with a bare minimum 2,00,00 sq ft area,” Jani said. Although the cost of construction of a warehouse varies, based on the location, size, designing, etc, but on an average it requires Rs 50-60 crore per warehouse, she said.
With the growing retail segment, the need for inventory management has also arisen in the country and has propelled logistic companies to look at providing value addition services at their warehouses. Based on this, Transmart would further look at sector-based warehouses for consumer goods, retail, auto, cold chain, etc.
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