The company plans to increase revenue up to Rs1,400 crore by 2013 and is targeting an investment of Rs500 crore by 2013, across various segments
Future Logistics Solutions Ltd said that it expects its revenue to increase to Rs1,400 crore by 2013 from Rs200 crore in FY09. Company officials said this would be driven by the various expansions that the company plans across various segments.
“We expect revenue of Rs1,400 crore by 2013. The total revenues last year were Rs200 crore, for this fiscal (FY10) we expect it to be more than Rs250 crore but less than Rs300 crore,” said Anshuman Singh, managing director and chief executive, Future Logistics.
On being questioned how much was each segment expected to contribute to the Rs1,400 crore revenue, Mr Singh said, “Business is growing rapidly and thus giving a break-up will be difficult.”
The company also plans an investment of around Rs500 crore by 2013. It has presence across five main segments—reverse logistics, warehousing, transportation, brand distribution and international logistics business. Last year, it also entered the third party logistics segment.
In the warehousing segment, the company has huge expansion plans. “We are setting 5 million sq ft of warehousing capacity in the next three years. The warehousing centres will come up across the country mainly in major towns and cities. Altogether, we are setting it up in 30 cities in the country,” said Mr Singh.
In the transportation segment, the company plans to expand its current fleet of 500 trucks to 1,000 in the next one year. The company has recently entered the brand distribution segment and claims to be the first player for brand distribution in the FMCG segment.
“We are especially approaching small scale and medium scale players in the FMCG segment. Such players face problems in modern organised distribution. This is the segment that we are trying to capture and we have already started,” added Mr Singh.
Speaking on the size of the market in this segment, he said, “Brand distribution is a very big industry. There is a large market available worth several thousands of crore.”
In the reverse logistics segment, the company is operational in the apparel and furniture segments and soon plans to enter the consumer durables segment. “The mobile segment also has a decent market available, but we do not plan to enter it,” Mr Singh added.