LEAP India, a supply chain solutions company, plans to venture into forklift renting business by ordering 100 forklifts from Toyota as part of its forward integration plans.

The company will be investing about ₹15 crore for buying the forklifts and lease it to corporates for use in their warehouses.

Leap is one the largest suppliers of pallet on rent to leading automobile, e-commerce, dairy, beverages, pharma and FMCGs as its client.

It recently signed agreement with Bosch India, Taco (Tata AutoComp Systems) and Endurance Technologies, one of the leading automotive component manufacturing companies.

The company plans to raise ₹25 crore from banks.

Sunu Mathew, Managing Director, said with the roll-out of GST the size of warehouses are getting bigger and need smarter solutions for moving goods faster.

“Warehouses have taken up projects on automation and looking at investments to facilitate mass movement of goods within the warehouses. In this background, the demand for forklift is expected to increase to 20 lakh by 2022 from 2 lakh,” he said.

The company expects a monthly income of ₹60,000 to ₹130,000 from each forklift it plans to rent to corporates.

Currently, Mathew said the forklift rental business is highly unorganised and there are no major players in the industry.

With the venture into new business and growing demand for existing offerings, the company expects its revenue to touch $150 million in five years, said Mathew.

The company also plans to increase the current pallet count from one million to three million in the next three years.

It expects strong growth in its Foldable Large Containers business with the rapid growth in automobile sector spurring demand for transportation of spare parts.

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