The Hindu Business Line : Kotak Mahindra arm invests in DRS Logistics

Announcing this at a news conference here on Thursday, Mr A.K. Agarwal, Director, DRS Group, said the company would use the funds for the Rs 150-crore expansion plan for development of 1.5 million square feet of 3PL (third party logistics) space.

The company had acquired close to 70 acres in Chennai, Bangalore, Hyderabad, Bhiwandi, Gurgaon and Pune in this regard. "We will complete the development of the space by June," he said.

The company, which offers 3PL services to several retail and white goods manufacturers, would add 1.5 m sq ft next year.

Mr Agarwal said the booming retail industry has thrown open huge opportunity for the logistics companies.

The company, which hoped to end the financial year with a turnover of Rs 200 crore, said it might go public within three years.

Mr Nitin Deshmukh, Head- Private Equity, Kotak Mahindra Bank, said the company typically saw 3-5 years of association in the companies it invested.

Expansion

Mr Agarwal said the company had applied for licences to fly. "We are planning to have five air cargo aircraft," he said. It is also engaged in talks with some companies for acquisition. "It is difficult to start a fresh initiative in the existing business," he said and added that it made sense to acquire a company in that segment to have a foothold.

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