The Hindu Business Line : DRS group plans setting up logistics parks

Mumbai, Aug. 20 DRS Group, a Hyderabad-based company and operators of Agarwal Packers and Movers, now plans to expand its base in third-party logistics with the introduction of logistics parks.

Speaking to Business Line, Mr A.K. Agarwal, Director, said: “In the current scenario, big retail players want hassle-free warehouse management. The customers only get to experience the air-conditioned comforts of the retail ou tlets, but the backbone of retail business is its strong warehousing needs. We are trying to tap that potential by providing facilities currently to our clients like Hyundai, Bridgestone, MRF Tyres, Lifestyle- Max Retail, Frigoglass, Norton and others.”

The company plans to set up 18 logistics parks across India by 2010 with a total area of four million sq ft at an investment of around Rs 600 crore, to be raised through debt and equity route.

To begin with, the Group has acquired 25 acres each in Gurgaon and Hyderabad.

With a construction area of five lakh sq ft, both warehouses should be operational by March 2008, said Mr Agarwal.

“In addition, facilities in Chennai, Panvel (Mumbai), Indore or Nagpur among others are likely to be finalised soon.”

He added: “The concept of logistics parks is in keeping with international practices, whereby retailers with diversified products can store their goods at one place and save on logistics costs. We would be offering space for storage of perishable commodities like vegetables and expensive items related to IT and other industries in specially designed warehouses at one place.”

With 165 branches and a network in 60 Indian cities, DRS, with a turnover of Rs 200 crore, operates in household movement, parcel, air cargo, shipping and road transport.

“Our aim is to be an end-to-end service provider taking care of all our client needs,” Mr Agarwal said.

According to him, the company has plans to strengthen its air cargo and shipping businesses by acquiring an existing player in North India.

Refusing to comment on the specifics of the deal, he said: “It would be a logical step, giving the company a presence in all modes of logistics movement.”

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