Hit by Snapdeal woes, Vulcan Express operations slashed by half

Snapdeal is in the process of reducing the size of operations of its logistics arm, Vulcan Express, by more than half, said a source close to the development.

Written by Anushree Bhattacharyya

New Delhi

Updated: February 23, 2017 06:34 IST

The company had recorded losses of R3.2 crore in FY15. Revenue during the period increased five times at R185 crore. (Reuters)

Snapdeal is in the process of reducing the size of operations of its logistics arm, Vulcan Express, by more than half, said a source close to the development. Vulcan currently handles 30% of Snapdeal’s orders and the idea is to reduce it by 10%. “This is also means that the company will shutdown warehouses apart from delivery centres. Delivery boys and other employees who are on third party pay rolls have already been asked to leave,” said a company official.

Vulcan currently has about 15 warehouses and 100 delivery centres across the country. In an email response to FE’s queries, Snapdeal said, “Given the depth and span of Vulcan’s network, we are considering opening it up to third parties in the next few months”.

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Vulcan reported a five fold increase in its losses at Rs 20 crore in FY16, according to filings with the Registrar of Companies (RoC) and data site, Tofler. The company had recorded losses of R3.2 crore in FY15. Revenue during the period increased five times at R185 crore.

This article was first uploaded on February twenty-three, twenty seventeen, at twenty-nine minutes past six in the morning.