JOIN USPatel Integrated moves to ride eComm boom
Leading logistics player Patel Integrated Logistics is on an expansion mode across India as its business continues to grow.
The company plans to open three new warehouses in the country, according to Areef Patel, vice chairman, Patel Integrated Logistics.
“We are planning to set up new warehouses in Bengaluru, Delhi, and Vapi in the next 12 months with an investment of around Rs 8 crore-Rs 10 crore,” Areef Patel told Deccan Herald. The investments will be totally funded via internal accruals, Patel added.
Tie-up with Amazon
Patel Integrated Logistics, which had recently announced a tie-up with global eCommerce giant Amazon, is aiming to encash on the eCommerce boom in the country by setting up new branches as well as carving out a separate arm for that particular business.
“Our branch network across the country currently stands at around 750-800. We plan to add around 250-500 branches, mainly to cater to the eCommerce boom and are also in talks with technology vendors to have a seamless backbone in technology,” Patel said.
“We are in talks with players apart from Amazon for a similar kind of arrangement and are aiming to set up a separate division for eCommerce over the next 12-18 months,” he added.
Patel Logistics currently has an annual turnover of around Rs 550 crore. Out of this, the tie-up with Amazon is currently yielding around Rs 2.5 crore per month.
“We are aiming for a 50 per cent addition in profits and 10 per cent growth in turnover for FY16. The current contribution from the eCommerce business to our turnover stands at around 3-4 per cent and we are targeting around 15-20 per cent of our turnover from the eCommerce segment in the next 24 months,” Patel said.