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Swiss logistics major M+R Spedag Group, which recently completed the acquisition of the Chennai-based PL Shipping and Logistics Ltd, is scouting for acquisitions to cement its presence in the domestic inbound air freight business.
Its plans in the domestic air freight segment will be spearheaded by M+R Logistics (India) Pvt Ltd, the new entity post Spedag's acquisition of PL Shipping and Logistics.
Throughput
“We are targeting to double our air freight throughput from the current 4,000 tonnes in the next two to three years. Similarly, we are targeting doubling of our sea freight cargo throughput and turnover from the current levels of 30,000 tonnes and Rs 150 crore in the next 2-3 years,” Mr Ramkumar Ramachandran, Managing Director of the company, told Business line .
He said the domestic inbound air cargo sector was growing at a faster clip than the outbound segment, which still mostly involved traditional cargoes.
Inbound freight
“We intend to cover the entire spectrum of the inbound air freight logistics business, ranging from procurement, value-adding, picking up at factory, warehousing and delivery,” he said.
The company will be looking for companies that have presence in the air freight market with an exclusive network for strategic acquisition. It will be focussing on cargoes such as engineering goods, auto components, pharma and chemicals.
While its operations in the air freight segment will primarily be 3PL (third-party logistics services), the company will be foraying into the 4PL orbit as far as project cargo is concerned.
Spedag, which has a joint venture with German company LS Cargo for project cargo movement in certain parts of the world, will be using this tie-up to extend the business into India.
“We are carrying project cargoes for companies such as Alstom and ABB to African and European countries. We will be extending this business into India,” Mr Ramachandran said. Project cargo involves transportation of heavy materials, plants and machinery.
Bpo facility
The company also has plans to set up a BPO facility to handle the $500 million Spedag Group's global offshore development works.
“We are yet to select a location for this facility, but we are seriously considering this proposal. We will be hiring a team of IT professionals for the operation of this facility,” he said.
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