US private equity giant Warburg Pincus-backed Stellar Value Chain Solutions led by Anshuman Singh, a supply chain management veteran, is seeking to bring disruptive changes to the Indian supply chain landscape through ‘Value Chain Transformation’. Anshuman, a co-founder of Future Supply Chain Solutions Ltd (FSC) along with Kishore Biyani, founded Stellar Value Chain Solutions in 2016.

In a span of four years, Stellar has knitted together contract logistics (3PL modern warehousing) and logistics (transportation - express, LTL and intra city) services along with supply chain modelling and solutioning in fashion, retail, e-commerce, FMCG, consumer durables, Hi-tech, automotive, industrial, pharma and telecom sectors.

It has also acquired companies in the cold chain and logistics sector such as Innovative Logistics, Kelvin Cold Chain and Patel Roadways. In a chat with BusinessLine , Anshuman shares his growth strategy. Excerpts:

With India on the cusp of a logistics implosion on the back of GST and technology interventions, what is your growth strategy?

Stellar is looking to partner with corporates in India to change their supply chain by bringing in world-class large logistics facilities, cutting-edge technology, know-how, and nurturing talent. GST has compelled companies to re-look at their entire supply network and move into a more modern way of functioning.

We are looking at creating 50 million sq ft of Stellar Value Chain Demand Centres spread across 40 logistics parks, coupled with Stellar Value Chain Transport Network Centres in 21 cities. These 21 cities have been identified as core production and consumption centres.

We are currently operating 11 million sq ft of demand centres for corporates who are leaders in their industry verticals.

Our pan-India transport network will ramp up to 50,000 trucks (dry and temperature-controlled).

Total investment cost for this expansion would be about ₹25,000 crore over 5-6 years. Stellar Value Chain will invest between ₹3,000-4,000 crore over a period of time and the remaining amount will be jointly invested by landlords, developers, owners and vendors.

Stellar will facilitate partners in getting funding through banks and financial institutions based on our commitment to occupy the warehouses on long-term lease of 9-12 years.

At a time when climate change and carbon-neutral solutions are gaining prominence, where do the 50,000 trucks fit into the plan, particularly when customers make such demands?

We are totally committed to climate change and sustainability and have aligned ourselves to the National Sustainability Development Goals (SDG) targets. We will adopt key sustainability goals for our business to create lasting impact on people, planet, and profits.

Since road logistics continues to be a major player in India and overall logistics market, we are looking at carbon efficient delivery solutions like electric and LNG vehicles forming a large portion of our fleet. Vehicles will be BS-6 compliant. Green policies and guidelines are being based on ISO 14001.

While the logistics market is big, will the presence of many players hinder Stellar’s ability to grow?

The size of the logistics industry in India is estimated to be worth $215 billion. Organised 3PL players have only touched the tip of the vastly growing logistics market. With more organized players joining the fray and customers getting the confidence to outsource, the market will continue to expand at an exponential pace. There will be a huge demand for players having the expertise and ability to provide customised supply chain solutions to customers and leveraging the potential of digital technologies to improve delivery timelines and optimise costs.

With the arrival of modern, supply chain companies, how does the logistics industry, dominated by unorganised players, play out over the next few years?

Government reforms and policy interventions have brought consolidation in the logistics sector. Going forward, the organised market will grow at a very rapid pace while the unorganised market will decelerate. With the government reiterating its commitment to strengthening the infrastructure sector and other reforms to facilitate ease of doing business, we see huge opportunities in the sector.

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