New Delhi Indian logistics and supply chain management company Transport Corporation of India (TCI) is planning to strengthen its operations in neighboring Nepal and Bangladesh while expanding into Sri Lanka.
The move is part of the company’s plan to become a major logistics player in the South Asian region, which is growing rapidly and with it, there is a possibility of greater movement of goods.
“Cross border movement in the SAARC region is a big area of growth for us as we see that the government is also focusing on this region to promote trade and invest in projects. Our companies are already in Nepal and Bangladesh, and now we are trying to open offices in Sri Lanka. Vineet Aggarwal, Managing Director, TCI said, “More opportunities in this area will be explored.
He added that the company was expecting a 10-15% growth in revenue as well as profit this year and expected to maintain this level in the coming years, given the global slowdown and the ongoing Russo-Ukraine war. Despite the uncertainties in the market with. Aggarwal said that increasing the share of regional business will contribute to the growth.
TCI proposes to invest 300 crore in FY23 and a major part of it has been set aside to buy a ship that will assist in the operation of sea routes which currently contributes 15% to the revenue. The company currently has a fleet of six ships, but a couple will soon complete their life cycle and need to be replaced.
“Our big investment for this year is to buy a ship. But since the prices of ships have not come down much, it is becoming very difficult to buy ships. We are still hopeful that we will be able to complete the purchase in the fourth quarter.”
In the second quarter of the current financial year, except the sewage business, everything else posted decent growth for the company. “In Q2 and HY FY23, the company performed consistently. The focus on core business fundamentals along with rising demand in the automobile and consumption sectors enabled all business sectors to deliver satisfactory results despite inflationary pressures,” said Agarwal.
TCI, with a revenue of more than 5,000 crore supply chain and logistics solutions provider with company-owned offices and an extensive network of 13 million. Square feet of warehousing space.
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