Spear Lo­gis­tics to In­vest ₹ 30 cr to Ramp Up Fa­cil­i­ties Ahead of GST

French par­ent lines up 30-40 m in­vest­ment in 3 years to ex­pand co’s pres­ence here

The Economic Times - - Companies: Pursuit Of Profit - Vat­sala.Gaur@ times­group.com

Mum­bai: France’s FM Lo­gis­tic­sowned Spear Lo­gis­tics plans to spend ₹ 30 crore in the next 6-8 months in ramp­ing up spe­cialised custom-built ware­houses in an­tic­i­pa­tion of a surge in seam­less in­ter-state move­ment of goods once the GST regime rolls out.

“Spear in In­dia was just about ded­i­cated ware­hous­ing. How­ever, with the ad­vent of GST, we plan to come up with more multi-client ware­houses. But we will still have our ded­i­cated ware­houses. It will be a fair mix of ded­i­cated and multi-client,” said Pankaj Salpekar, head, mar­ket­ing, Spear Lo­gis­tics. While an out­lay of ₹ 30 crore is planned for the short term, the com­pany’s long term plan is to in­vest 3040 mil­lion over the next three years as the French ware­hous­ing player ex­pands Spear's blue­print in In­dia. “As GST kicks in, our plan is to first rent a large warehouse, which we have rented in Mum­bai and we’ll do the same thing in Delhi. Then, we have de­cided to pur­chase land and build large ware­houses of 500,000 sq ft to 800,000 sq ft. This is our long term plan,” said Jean-Claude Mi- chel, chair­man, FM Lo­gis­tics. The com­pany had bought a ma­jor­ity stake in Pune-based Spear Lo­gis­tics last year.

Lo­gis­tics gi­ant DHL Sup­ply Chain, part of global player Deutsche Post DHL Group, has al­ready cre­ated a firm base for the tran­si­tion, with an in­vest­ment plan of 100 mil­lion for in­fra­struc­ture and has al­ready de­vel­oped mul­ti­client sites fa­cil­i­ties in nine lo­ca­tions in In­dia.

“The cur­rent av­er­age size of a warehouse is around 20,000 sqft, with a height of 7-8 me­tres, which makes it less ef­fi­cient and sus­tain­able. Also, it is the cu­bic feet that mat­ters, not so much the square feet. If the warehouse is high, it brings down the cost as well as other in­ef­fi­cien­cies, which in turn greatly ben­e­fit the cus­tomer,” said Vikas Anand, MD, DHL Sup­ply Chain, In­dia.

Lo­gis­tics gi­ant DHL Sup­ply Chain plans to in­vest 100 m on mul­ti­client fa­cil­i­ties

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