Allcargo Logistics wants to set up logistics parks
Allcargo Logistics wants to build logistics parks at Narendra Modi’s ambitious smart cities, its chief operating officer said recently.
“We are looking at rail corridors. Wherever the dedicated railway freight corridor passes through, there will be smart cities. If the industrial zones are set up, we will look at logistics parks. We will go an examine whether it makes for strategic fit and whether it gives us the return we want on our capital employment,” Prakash Tulsiani said.
In July, Modi announced the government’s plan to develop 500 cities and 100 smart cities over the next five years. For instance, in Maharashtra the cities indentified are Mumbai, Navi Mumbai, Pune, Nagpur, Nashik, Aurangabad, Kalyan-Dombivali, Thane and Solapur. The cities will have features such as planned public transport, greeenfields, water recycling, efficient digitisation and air-connectivity.
“When there is production happening in these cities, it will need to be distributed. You will need a logistics company, there will be a private freight terminal, a container freight station” he said, adding that the company will show interest when the government puts such projects out for bids.
“If you see the government’s spends on infrastructure is improving. That will be the next level of India growth,” he said.
Tulsiani added this infrastructure projects like these would need the government’s support in terms of tax incentives.
“These are capital intensive projects and there is a gestation period before the returns start to come in. So we will need that support,” Tulsiani said the company a few months earlier got into a tie-up with e-commerce major Snapdeal to provide warehousing.
“We are providing warehousing services to Snapdeal. We are helping them in the NCR region. The deal happened some months ago. We are only in one geography. This is just the beginning. We have to prove our services,” he said.
Allcargo on Friday said it posted a net consolidated profit of INR 72.5 crore for the July-September quarter compared to INR 63.6 crore a year earlier.