Allcargo to get into last-mile delivery
With the GST boost, Allcargo Logistics is planning an aggressive domestic play by entering the last-mile delivery space and has set a target of trebling its domestic revenue at `1,500 crore from the segment by 2020. The company will invest around `1,000 crore to double its exim warehousing/ CFS stations and logistics park capacity to 10 million sqft by 2020.
The company will focus on the booming e-commerce space under the domestic focus where it already works with all key players as a B2B player, but not into last mile delivery. In fiscal 2017, Allcargo reported net profit of
`230.4 crore on a revenue of `5,568 crore and a debt of `300 crore.
Allcargo is building its largest MMLP at Jhajjar in Haryana on a 180 acre land which will be ready by next March. The company expects the final customs clearance for its 20 acre CFS in Kolkata anytime now and commission it by mid-august. Allcargo has also acquired land for exim warehouses/ CFS in Bengaluru (100 acre), Hyderabad (a 40-acre CFS will be ready soon), Chennai (54 acre) and Nagpur (60 acre) into which it will pump in around `1,000 crore.