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Embarking on the ESG initiative in a big way, Gati Ltd — an express logistics and supply chain solutions provider — intends to convert its entire pickup and delivery fleet into alternate fuel vehicles by 2025.
The company is in the process of inducting more than 2,500 electric vehicles in two years for last-mile delivery. It has signed MoU with a company for the delivery of 500 electric vehicles and is on its way to introduce 100 vehicles this year itself, Pirojshaw Sarkari, CEO, Gati Ltd said.
Speaking to businessline over the phone from Mumbai, he said the company has also plans to set up 12 mega warehousing hubs in various parts of the country including one in Kochi to further strengthen its supply chain competencies.
The new hubs will coincide with the launch of a new 1.48 lakh sq ft surface transshipment centre and distribution warehouse (STCDW) Grade A warehouse at Bhiwandi in Mumbai at an investment of ₹6 crore.
The STCDW in Mumbai has also planned to have solarisation facility which will generate 150 kw of power. Besides, an AI-powered round-the-clock tracking system at the facility offers real-time visibility of the cargo movements, he said.
The other regions identified for opening advanced STC hubs with modern and automated facilities include Nagpur, Guwahati, Bengaluru, Hyderabad, Indore, Kolkata, etc.
New potential
Being a large consumer State, Sarkari said Kerala offers huge potential to set up a warehousing hub and the company is going ahead with the opening up of a facility in Kochi by the end of the current fiscal.
To a question on the growth of express logistics business in India, Sarkari said the sector witnessed a CAGR of 10-11 per cent and it was one of the few industries that survived the Covid pandemic.
At a time when India is marching towards a $5 trillion economy, there is a need to boost logistics service efficiency and distribution bandwidth to cater to multiple industries like automotive, electrical equipment, apparel, heavy engineering, pharmaceutical, etc.
This would require more Grade A warehouses of global standards with advanced features to ensure supply chain visibility, reduced dwell time, and time-definite deliveries, Sarkari said.
In January, Gati had set up state-of-the-art and tech-enabled surface transhipment centres (STC) in Nagpur and Guwahati.
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