Ram Charan, an Rs 140-crore Chennai-based company in the business of supplying raw material for a range of industries, plans to set up 11 new warehouses across the country. It already has seven.

The capacity expansion that could cost around Rs 35 crore, means the company will have warehouse covering practically the entire country, according to the company's Director, Mr Kaushik Palicha. Funding will come from banks and internal accruals.

Being in the trading business, the 45-year-old Ram Charan group caters mainly to the rubber and plastics industry. It supplies products such as rubber, plastic, coatings, inks, ancillary sectors, electrical and electronics, printing, and construction and adhesive to various clients across the country. It buys products in bulk and stores it in warehouses, and distribute to customers on demand. “We take the entire risk of buying the product, storing and delivering to clients,” he said.

Mr Palicha said the company at any point of time has goods valued at around Rs 12 crore in its inventory. Whenever the clients want the products, these will be distributed from its warehouses. Customers such as Futura Polymers, TVS Chakra and Rane group, provide a three months forecast of the products required, he said.

Ram Charan began its operations in Kerala in 1965 with the distribution of one raw material – Carbon Black, for the rubber industry. The group commands a market share of 30 per cent in rubber, 90 per cent in plastics, and 40 per cent in inks and coatings. Its customers include TVS Chakra, he said.

Mr Palicha said the group has forged a strategic tie up with Toyota Tsusho in India to supply/promote products for automobile and industrial applications with the focus on strong supply line to the auto industry and Toyota vendors in particular.