MUMBAI (Reuters) - Allcargo Global Logistics on Thursday said it plans to enter third-party logistics business in a few months and expand its warehousing capacity to 400,000 sq ft.
Third-party logistics providers handle all or most of a company’s freight and production distribution activities, thus relieving the customer from day-to-day logistical issues.
Allcargo is a market leader in the less-than-container-load (LCL) segment -- shipments that are insufficient either in weight or quantity for standard containers.
“We are planning warehousing capacity expansion at Verna (Goa), Hosur & Nagpur,” group Chief Financial Officer S. Suryanarayanan said in an e-mail to Reuters.
The aim is to become an integrated logistics player.
The company intends to invest 400 million rupees on its warehousing expansion.
Allcargo, which aims to almost double its revenue to $1 billion by 2014, is actively scouting for acquisitions in the fast growing markets of India and east Asia, after picking up stakes in a couple of Hong Kong-based logistics firms last year, Suryanarayanan had said in February.
“We are planning to rapidly expand the ICD (inland container deposit) footprint across India. We aim to grow by setting up our own facilities or acquisitions,” he said on Thursday.
Of its total capex of 2.5 billion rupees for the year ending December 2011, the company plans to utilise 400 million rupees for ICD development at Dadri and Hyderabad.
At 3:08 p.m., Allcargo shares were up 0.06 percent at 159.5 rupees in a weak Mumbai market.
Reporting by Aniruddha Basu; Editing by Rajesh Pandathil
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