Bobba Logistics earmarks ₹100 crore for phase 2 expansion of micro-fulfillment centers

Aishwarya Kumar Updated - September 19, 2024 at 11:02 AM.

Bobba Logistics plans to add a second centre in Devanahalli for Phase 2, with its completion expected in Q4 2025

L to R: Chandrakala Bobba, and Balajee Bobba, Directors, Bobba Group

Bobba Logistics, a third-party logistics (3PL) and micro-fulfilment warehousing vertical of Bobba Aviation, is expanding its footprint in Bengaluru and plans to set up a new micro-fulfilment facility. The logistics player has earmarked ₹100 crore for Phase 2 of the warehousing setup, which is expected to be completed by the end of FY25.

Currently, the company operates a micro-fulfillment centre on Bellary Road, located 12 km from Bengaluru International Airport, which has been operational since March 2023. The company plans to add a second centre in Devanahalli for Phase 2, with its completion expected in Q4 2025.

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Micro-fulfilment centres play a significant role in supporting MSMEs by providing them with organised logistics which helps seamless, cost-efficient, and sustainable fulfilment warehousing, said Chandrakala Bobba, Director, Bobba Group.

She emphasised, “As we move forward, it is clear that traffic will continue to increase. In this context, micro-fulfilment centres serve as essential hubs, helping companies save on transit time by enabling faster fulfilment will further enhance operational growth.”

Additionally, these centers can address the company’s inventory management needs based on their specific requirements,” stated Balajee Bobba, Director, Bobba Group. “Instead of renting a larger space of 200,000 sqft or more for a single customer, businesses can utilise micro-fulfilment centres to optimize their storage and distribution.

For instance, one customer might need our services for three months, while another may only require them for one month. We can customize the space and services accordingly, he explained.

Bobba’s micro-facility serves a diverse clientele of over 15 national and international MNCs across various sectors. These include freight forwarders, airlines, leading pharmaceutical manufacturers, and perishable exporters specializing in fruits and vegetables, and automobile spare parts among others.

Furthermore, Bobba is planning to expand into other southern cities like Kochi, Chennai, and Hyderabad before exploring opportunities in the northern markets,” said Balajee.

Bobba Logistics recorded a revenue turnover of ₹25 crore and expects to triple this amount in the next 3 to 4 years. “We project growth of 8 per cent year-on-year (YoY) in the first three years, he added.

Published on September 19, 2024 04:07

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