Taking the rising inflation rate, low industrial output, high interest rate regime, and the overall economic slowdown in their stride, the domestic logistics companies have lined up major expansion and investment plans.

With the logistics majors like Safexpress, Transport Corporation of India Ltd (TCIL), and Bluedart, among others planning to expand their operations, the sector is likely to get an investment of over $2.5 billion in the next two to three years, according to infrastructure consultant Feedback Ventures.

?We are planning to invest Rs 1000 crore in the next three to four years. We have been growing at the rate of 30 per cent in the last three years. Targeting a growth rate of 50 per cent, we expect to double our revenues from Rs 500 crore to Rs 1000 crore,? said Vineet Kanaujia, general manager, Safexpress. Kanaujia said the company plans to add 365 containerised, all-weather vehicles a year. ?We are also planning to increase the warehousing space from 4 million sf ft to 10 mn sq ft,? he added. Safexpress also plans to foray into food segment. ?The food segment is a fast-growing segment. The vertical will be operational in a couple of months,? Kanaujia said.

An integrated supply chain and logistics solutions provider, TCIL has lined up Rs 200 crore expansion plan. The expansion, set to be complete by 2010, will see investment in ships and trucks and warehousing.

?We are planning to invest in high-tonnage trucks. Also, we will invest in small-end vessels to serve coastal areas and neighbouring countries,? said Vineet Agarwal, executive director, TCIL.

Agarwal said the company plans to increase the warehousing space in order to cash in on the growing needs of retail, fast moving consumer goods, pharma, and electronics companies.

?We have 7.25 million sq-ft warehousing space, which we own, rent, or lease. We are planning to increase this to 10 mn sq-ft by 2010,? he added. We are looking at complete supply chain management for sectors like auto and retail. Also, with the coming in of GST, the retailers would like to centralize their operations, thereby creating a need for specialized warehousing,? he added.

The company is also planning to develop properties commercially. ?We are looking at developing housing projects and commercial projects, among others. The properties will be developed depending on the location and we are doing feasibility study,? he added.

Agarwal said the investments would be funded by debt, internal accruals, and equity. ?By the third or the fourth quarter, we plan to raise additional capital depending on the market situation,? he added. Bluedart, another major player has lined up a capex plan of Rs 200 crore for the year.