Allcargo to invest Rs.170 cr to expand domestic business

The Dollar Business Bureau

Allcargo Logistics, a leading integrated logistics solutions company, will invest around Rs.170 crore in the current financial year for purchasing land to set up a logistics park on New Delhi’s outskirts and a container freight station (CFS) in Kolkata, according to a company’s top official.

After announcing a target to nearly increase its revenue three-fold to $2 billion by 2020, Allcargo Logistics, which mainly serves the export-import trade till now, is looking to set its foot in the domestic market with businesses such as express delivery, Shashikiran Shetty, Chairman of the company told to PTI.

He also gave a hint that the company will follow acquisitions strategy for domestic play. 

“We will be investing Rs.170 crore this fiscal year, which will include Rs.100 crore for the land at Jhajjar in Haryana on the Delhi border for the logistics park, Rs.40 crore for a CFS in Kolkata and Rs.30 crore for the projects and equipment business,” Shetty said. 

He further said that the overall investment to buy land in Jhajjar is more than Rs.200 crore. However, the cost will be spread over the two years. 

The logistics firm is more optimistic on the domestic business space, where it is operating only in coastal shipping division, because of economic recovery and tax reforms under Goods and Services Tax (GST). 

The firm is looking to the highly competitive space of express delivery, to start with. 

The domestic business will serve as a considerably important part in reaching its revenue target of $2 billion (about Rs.13,430 crore) by 2020 from Rs.5,800 crore in the last fiscal 2015-16, Shetty said.