Shree Maruti Courier Aiming Yearly Rs. 300 Crore Business from Its Logistics Vertical in Next Five Years
Read Time:4 Minute, 9 Second
The company will invest around Rs. 50 crores to set up new warehouses and strengthen the existing network
Highlights
- Shree Maruti Courier started the logistic (Surface Cargo) Vertical during the year 2019, and within the first two years, the company had achieved significant growth, though the situation was critical
- Shree Maruti Courier’s major share of the total turnover comes from the domestic courier product
- Looking at the current market scenario, the company management aims to increase the share of its Logistic (Surface Cargo) in its own sales
- Currently logistics vertical contributes only 15% to Shree Maruti Couriers’ annual turnover, which the company aimed to take to 45% in the next five years
- The company has 126 warehouses across the country and planning to add more than 150 by the year 2026
- Organised logistics market in India is just 10% of the total Indian logistics market of Rs. 16.41 lakh crore
- Post COVID-19, the logistics market size in India is projected to grow with the rate of 17.6% Y-O-Y
- Plans to grab a significant pie in the booming E-commerce business
Ahmedabad (Gujarat) [India], October 05: Banking upon a nation-wide strong network and to tap the immense potential of the logistics sector, Shree Maruti Courier Services Pvt Ltd is eyeing Rs. 300 crore business from the logistics vertical by the year 2026. The Ahmedabad headquartered courier and logistics firm is planning to invest around Rs. 50 crores to set up new warehouses and strengthen the existing network across India. Currently logistics vertical contributes only 15% to Shree Maruti Couriers’ annual turnover, which the company aimed to take to 45% in the next five years
Shree Maruti Courier had started the Surface Cargo vertical during the year 2019, and within the first two years, the company had achieved significant growth, though the situation was critical. Shree Maruti Courier’s major share of the total turnover comes from domestic courier products. Looking at the current market scenario, the company management aims to increase the share of its Surface Cargo division in its own sales.
Speaking on the future plans, Mr. Ajay Mokariya, Managing Director, Shree Maruti Courier Services Pvt Ltd, said, “We believe that the logistic vertical will be a next growth driver for the growth of the company. Improving infrastructure across the country, increasing urbanization, massive push to E-retail, and faster adoption of newer technologies are the key factors that will take the logistics business to newer heights. The E-commerce market is the next thriving industry which will create massive opportunities for the logistics sector. We are aiming to get a significant share from this emerging business. With the threat of Covid-19 gradually shrinking, the logistics market in India is gearing up to scale new heights.
Shree Maruti is leveraging on its strong existing network of 3,000 outlets across India serving to 4,600 pin codes. At present, the company has 126 warehouses across the country and planning to add a further 150 warehouses by the year 2026. In addition to the courier service, the company has expanded its verticals in supply chain and international cargo services. The company is planning to add 2,000 cities and towns of the country in their network and aiming to achieve Rs. 1,000 crore turnover in the next five years. To tap the booming E-commerce market opportunities, the company is strengthening the existing infrastructure and setting up a separate division to look after the operations.
The logistics sector is considered the backbone of India’s economy, estimated to be worth nearly Rs. 16.41 lakh crore. It is approximately 13.5% of the total GDP of the Indian market. Post COVID-19, the logistics market size in India is projected to grow annually with a rate of 17.6% Y-O-Y.
“Organised logistics market in India is just 10% of the total Indian logistics market. The increased consumer preference for the reduced delivery time and deployment of innovative techniques for the fast delivery of products are all playing the vital role of a catalyst in fuelling the growth of the organic logistics players in India. This organic logistics sector is growing at the rate of 10% to 15% per year”, added Mr. Mokariya.
For the FY 2021-22, the company plans to open 3,190 new unique pin codes, covering 900+ recent locations. Out of these 900+ new locations, 200 will be main cities, and the rest will be tier-2 and tier-3 cities and towns. With this aggressive expansion plan, Shree Maruti Courier is targeting to have a network in 2,500 cities & towns with around 4,000 outlets at the end of FY 2022. The company handles 2.5 lakh couriers and consignments daily through air and surface transport routes. The company has more than 18,000 committed and passionate workforces, including employees, franchisees, and other associates.
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