The Hindu Business Line : VRL Logistics expanding in East, N-E regions

Kolkata, Aug. 20 VRL Logistics Ltd, the Karnataka-based road transport company engaged in transportation of both passengers and freight, in fact more freight than passengers, proposes to expand its operation to the eastern region including the North-Eastern States.

“Through the hub-and-spoke network of 40 hubs and 1,000 branches, we currently operate from Amritsar in the North to Thiruvananthapuram in the South but our presence in the East is limited to only one branch in Kolkata,” Mr Vijay Sankeshwar, Chairman and Managing Director of VRL Logistics, told Business Line. “We must have much larger presence in the East including North-East and we’re mulling how to proceed in this regard.”

The company currently operates a fleet of 2,600 vehicles, including 200 passenger vehicles, and the number of freight carrying vehicles is being increased by a few hundred more in the current year itself.

‘Funding no problem’

The funding of the acquisitions, as it was pointed out, would not be a problem as the company’s balance-sheet was robust.

“VRL Logistics is growing at 18 to 20 per cent every year for the past few years,” the CMD said. “Last year, our turnover was Rs 450 crore, likely to rise to Rs 600 crore in the current year”. Besides, as he indicated, the company had relationships with as many as 20 non-banking finance companies.

“We started in 1976 in Hubli with only one lorry to grow in past 30 years into a big road transport company now employing 13,000 people,” Mr Sankeshwar said. “We’ve trucks of varying capacity ranging from one tonne to 32 tonnes and we also have our own workshop for undertaking repair and thus prolonging the life of the vehicles we operate,” he said.

Mr Sankeshwar was very bullish about the prospects of Hubli, located in northern part of Karnataka and already the second most important city of Karnataka after Bangalore, emerging as one of the country’s most important industrial and financial centres.

“Hubli is strategically located with excellent rail and road connections with the rest of the country including the ports of Karwar and Mormugao,” he said pointing out that the airport would soon have night landing facility and would develop into an air cargo hub.

More Stories on : Supply Chain Management | Roadways

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Kochi port users oppose move to hike lease rentals of land

MERI to offer more seats as demand increases

VRL Logistics expanding in East, N-E regions

DRS group plans setting up logistics parks

Rlys to cap returns at 14% for rail links

Vijayanand Road Lines to raise Rs 300 cr, plans IPO