The Hindu Business Line : DRS Group chalks out big plans

Eyeing a huge opportunity in third-party logistics (3PL), as the country witnesses retail boom, DRS group, the Hyderabad-based company offering a variety of logistics solutions, has lined up plans for constructing 14 lakh sq. feet of warehousing services space in six metros.

"We will spend Rs 110 crore on this. The space will be ready by June next," Mr A.K. Agarwal, Director (Marketing), told Business Line.

"The country has just tapped the tip of the iceberg as far as organised retailing is concerned.

"3PL services let a company to focus on its core competency, while leaving the warehousing part to professional logistics companies. This will also help them save resources on investing in infrastructure and maintenance. We offer them customised services," he said.

The company, which started its operations with one vehicle in 1986, now covered 40 cities with 1,200 branches. It has divisions covering packing and moving, shiping and air cargo operations. "The number of cities would go up to 70 by March end," Mr Agarwal said.

Human resources

A leader in packaging segment, DRS would expand its operations to almost all the district headquarters in the next few years. The company, which did 30,000 packagings a year, targeted to reach the 75,000-mark by 2010.

Realising the fact that there was a dearth for quality human resources at the lower level in the logistics industry, the company had started an institute to train people in a variety of jobs. "We train them and absorb them in our own divisions," he said. The company, which registered a turnover of Rs 120 crore last year, targeted to cross the Rs 200 crore-mark in this financial year. It had begun the process of valuation, a precursor to a public issue. Asked when the issue was likely to come up, Mr Agarwal said the company planned to float the issue in the second half of 2008. "We would like to raise funds in the range of Rs 400-500 crore to fuel the growth plans," he said.

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