The Tata Group is planning to enter project logistics space in the next one year to tap the Rs 20,000-crore market in India. The group is currently preparing the groundwork for the introduction in the segment through its logistics arm Drive India Enterprise Solutions (DIESL).
The move assumes importance as the government is going to execute infrastructure development programme worth $1 trillion from April 2012. The Centre is in the process of implementing $500-billion infra projects till March 2012. DIESL feels that the infrastructure programme of the government would open up opportunities for the logisitcs sector.
?Considering the government?s focus on infrastructure development, we think it will be worth entering the project logistics space. We are working on the plans and may enter the segment within a year or so,? DIESL?s chief executive officer Ajay Chopra told FE.
At present, the project logistics market has a size of Rs 20,000 crore and is growing at 18% per annum. Chopra said the company won?t need to invest much to execute the plans as it would not buy new assets.
?We are an asset-light company, which means that we don?t invest in creation of physical assets as we operate through partners who have the required assets. We are going to follow the same model for our entry in project logistics,? he said.
DIESL provides warehousing, distribution, stock and cash management services. Project logistics services include project set up, movement of project cargo, management of project, etc. Currently, Allcargo Global Logistics Ltd, DARCL Logistics Ltd and AquaLogistics are among a handful of firms that provide these services in India.