Business

India’s leading integrated multimodal logistics service provider, Transport Corporation of India Ltd. (TCI) lines up Rs 250 crore capital expenditure for FY23

Transport Corporation of India Ltd. (“TCI”), India’s leading integrated supply chain and logistics solutions provider, today announced that it is planning to line up a capital expenditure of around Rs 250 crore for the next fiscal, i.e. FY23. Of the total Capex (capital Expenditure), the company would be spending Rs 100-125 crore on ships and containers. TCI is looking at around 12-15 percent growth in topline and 20 percent growth in the bottom-line.

Commenting on the Capex plans, Mr. Vineet Agarwal, Managing Director, TCI stated, ‘’We are looking at a Capex of around Rs 250 crore in the next financial year. Of this, about Rs 100-125 crore will be spent on ships and containers and, of course, some amount – may be another Rs 30-50 crore – on trucks. Then, we will also spend on building warehouses…which should be about another Rs 75 crore.

When you see the infrastructure growth that’s happening, which is multimodal, our rail business or seaways business should get a flip in that. We see customer demand changing. The general cargo movement is anyways happening. Our freight business also does relatively well there. So, all of this means that we are quite well positioned to capture the growth that’s coming into the market.”

Mr. Agarwal also mentioned that the 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 transportation. “For the year going forward, we are looking at around a 12 -15 per cent increase in the topline and perhaps 20 per cent (growth) is in the bottom-line. So, a multimodal shift has to happen to bring down the logistics cost. The programme will be very important for us to synchronize all the efforts and the activity that is happening around building India’s multimodal infrastructure. Multimodal means that you are able to move seamlessly between different modes of transport. This should be seamless for the logistics provider as well as for the customer.”

It is estimated that in the next 5-10 years, electrification, which is currently at the last mile or city level, will increase. The use of alternative sources of fuel – such as CNG, LNG and ultimately hydrogen will also rise. With TCI’s new initiative towards making India a key player in the supply chain segment, the company focuses on diversifying logistics for business and customers.

This article was shared with Prittle Prattle News as a Press Release.

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