Allcargo announces ₹400-cr investment in warehousing
Allcargo Logistics in a recent announcement said that its wholly owned arm Avvashya CCI Logistics will invest ₹400 crore on the expansion of its warehousing capacity to 10 million sq ft as the Goods and Services Tax regime drives consolidation in the logistics industry, CEO — Contract Logistics, V Balaji, said adding that the company currently has 3.5 million sq ft of operating facility across the country by 2022 as it is looking to grow it to 10 million sq ft by then. The expansion will focus on three key areas, including specialty chemicals, retail associated with e-commerce and auto engineering and North-East is an area that requires high quality infrastructure and service operators with global best practices. Currently, specialty chemicals contribute to half of the revenue of the company while auto and retail account for 35 per cent and 15 per cent, respectively. Over a period of time, it probably sees chemicals contributing 40 per cent of our revenues while the remaining 60 per cent will be split equally between auto and retail. Alongside auto will continue to remain a key focus area for the company with plans to enhance penetration by increasing services, the growth will be more in retail infrastructure where the industry has been growing at a compounded annual growth rate (CAGR) of 30-34 per cent, he added.
