Supply chain management services provider LEAP India on Friday said it is raising another ₹100 crore debt from banks to take the current pallet count from 1 to 3 million in the next three years.
“We have invested ₹110 crore equity raised in the last three years and ₹70 crore debt raised in manufacturing and deploying of pallets and Foldable Large Containers (FLC).
We are now raising another ₹100 crore debt from banks to take the current pallet count from 1 to 3 million in the next three years,” LEAP India Managing Director Sunu Mathew said in a statement here.
“We are aiming to garner a significant market share in the asset pooling space, which otherwise has been a highly fragmented and unorganised market,” Mathew said.
Earlier, the company had raised funding from Mayfield and Rishabh Mariwala. The company also saw participation from new investors, like IndiaNivesh Growth Fund, Sixth Sense and TCI Ventures.
Post GST, the requirement for consolidated and large warehouses to store the goods and distribute across the country has become a necessity. In the age of vertical storage of goods, pallets play major role in efficient storage and transportation of goods.
The current size of the pallets market in the country stands at ₹5,000 crore. We are currently eyeing for ₹100 crore revenue for the current year. By end of 2022, with 4.5 million pallets deployed in the market, our market share will be at 60 per cent and turnover will reach ₹ 600 crore, Mathew said.
There is huge export market waiting to be tapped. Once we gain considerable market share in India, we will enter other nearby markets, he added.
“Foldable Large Containers (FLC) is another segment of our business, which currently contributes 40 per cent of our business. These are currently used by automobile and pharma sectors. This pie is also growing over a period of time. The rapid growth in automobile sector in the country will increase the need for transport of spare parts, which will in turn spur growth for FLCs. The two wheeler production is set to rise to 34 million and passenger vehicle market would reach 10 million by 2020,” he said.