Home-grown logistics firm DTDC is planning an investment of Rs. 400-500 crore over the next three years. Investments will be made towards setting up transit hubs and allied infrastructure.

According to Abhishek Chakraborty, Executive Director of DTDC Express Ltd, nearly 70 per cent of the investments are expected in the first two years.

A part of the funds will be raised from internal resources, especially with the company being profitable. Discussions are on regarding the other fund raising options that the company can look into.

The company is eyeing a 60 per cent growth in its profits for FY19 (as compared to the previous year).
“We are preparing for the next level of growth with 2022 being the focus year. The capex target is Rs. 400-500 crore and most of the funds are likely to be generated through internal accruals,” he told BusinessLine . Investments, as Chakraborty points out, will be in transit hubs, service centres (nearly 500-600 new facilities are expected to be added) and an over 100 per cent increase in truck-fleet (from the current 1300). New additions to its truck fleet will be on a lease-basis.

DTDC will look at three transit hubs around the Delhi-NCR region. and at least one transit hub each along the Goa-Karnataka-Kerala route and the Andhra-Telangana-Karnataka-Tamil Nadu circuit.

Chakraborty explains, post GST the concept of having multiple smaller warehouses across States have been substituted with strategically located larger warehouses. In this context, transit hubs will help in faster goods movement by road as it will bring down the travel time to almost half and also avoid unnecessary congestion at larger warehouses.

“Transit hubs are expected to reduce a 3-4 day journey to 48 hours on select routes,” he pointed out adding that the expansion of network will see DTDC cover nearly 92 per cent of the pin-codes across the country. This apart there will be technology-related additions that include outlay of equipments, scanning devices and use of AI.

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