Logistics firm: Transport Corporation of India lines up capital expenditure for FY23 worth Rs 250 cr

• ByStartupStory     |    March 21, 2022

Transport Corporation of India, a Logistics firm, is planning to line up a capital expenditure worth Rs 250 crore for the next fiscal. The company, of the total capital expenditure (Capex), is expected to spend Rs 100-125 crore on ships and containers. The company also said that  in the topline it is looking at around 12-15 percent growth and in the bottom-line 20 per cent growth.

TCI Managing Director Vineet Agarwal said in a statement that in the next financial year they are looking at a Capex of around 250 crore. Of this, some amount may be around Rs 30-50 crore among Rs 100-125 crore will be spent on trucks and the rest will be spent on ships and containers. Then, they will also spend another Rs 75 crore on building warehouses.

He further said that currently TCI (Transport Corporation of India), has about 12-million sq ft of warehousing space under its management, which is further expected to be increased as the company acquires more space going forward.

To capture the growth that’s coming into the market it has been noticed that TCI is well-positioned, Agarwal said that the company would still be able to grow because of its diversified operations, even if there is not that much growth in some sectors.

They have been looking for an increase in the topline at around 12 -15 percent and perhaps 20 per cent (growth) is in the bottom-line, for the year going forward.

Prime Minister’s Gati Shakti initiative is a key programme as one of its objectives is to bring down the logistics cost, which will happen if there is a shift to multimodal transport, said officials.

According to Agarwal, it is estimated that electrification, which is currently at the last mile or city level, will increase in the next 5-10 years. The use of alternative sources of fuels such as CNG, LNG and ultimately hydrogen will also rise.

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