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Indicon Logistics Ltd, a wholly-owned subsidiary of Karam Chand Thapar Group, plans to invest Rs 500 crore in the next three years, in setting up container manufacturing facilities, container-related logistics infrastructure such as container freight stations and inland container depots.
It has already set up a container manufacturing capacity in Ranchi, at estimated cost of Rs 40 crore. This will start commercial operations from April 4.
To start with, the company will manufacture about 10,000 twenty-feet equivalent unit (TEU) containers annually.
“The Ranchi factory has a monthly manufacturing capacity of 800 dry freight containers, 200 tank containers, 150-200 reefer containers,” said Mr Varun Thapar, Director, KCT Group.
The company already has an orderbook of Rs 20 crore.
It claims to be the only company in India with a capacity to manufacture 45 feet containers, which can be used in some of the existing wagons of container train operators. The company claims it has the largest installed capacity in the country.
CAPACITY EXPANSION
Over the next three years, it aims to increase its capacity to 30,000 containers per year. Indicon Logistics will set up more manufacturing units at strategic locations with investments of Rs 100 crore, said Mr Thapar.
The company's potential customers include container train operators and shipping companies, road logistics operators, construction industry, automotive industry, cold chain users, bulk liquids transportation, FMCG and retail sectors.
ICD/CFS
The company is also looking to diversify into development of logistics infrastructure hubs, container freight stations, inland container depot, cold chain and warehousing solution.
The company is doing the market research now to decide on the mode of entry. It plans to put in about Rs 350 crore for these businesses.
Karam Chand Thapar and Brothers (Coal Sales) Ltd - a closely held company - plans to fund these businesses through internal accruals and debt.
PARENT COMPANY PLANS
Karam Chand Thapar and Brothers (Coal Sales), the parent company of Indicon Logistics handles movement of 70 million tonne (mt) coal annually.
It is also looking at buying coal mines in Mozambique and Indonesia.
“We are one of the largest users of Indian Railways for coal transportation,” said Mr Vikram M. Thapar, Vice-Chairman, KCT Group.
The company's customers include State electricity Boards, Coal India, paper mills, amongst others.
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