In order to meet the rising demand for organised and specialty logistics in the wake of the crisis, Indian logistics unicorn Delhivery is looking to invest up to Rs 300 crore in the next two years for expansion and capacity augmentation.
To this end, the company is planning to increase its fleet size by adding around 150 trucks and setting up trucking terminals in tier I cities Delhi, Mumbai and Bengaluru. All these business development strategies ride on the company’s objective to register revenue close to Rs 7,000 crore in the next 24 months, up from Rs 2,800 crore last year.
“Our total capital investment over the next 18-24 months is going to be in the range of Rs 250-300 crore. We will continue to invest behind growing our trucking network. We are going to launch three of the largest trucking terminals in the country in Delhi, Mumbai and Bangalore,” Delhivery Chief Executive Officer & Co-Founder Sahil Barua told the media.
“We did about Rs 2,800 crore of revenue last year. We expect to grow at least 35-40 per cent this year. At this point we are trending higher than that but we will end up around 40 per cent higher than last year. We expect to reach cose to Rs 6,000-7,000 crore of revenue in the next 24 months,” Barua said.
The SoftBank and Canadian Pension Plan backed logistics firm which started in 2011 and also delivers services in China and the United States plans to continue to grow its fleet with Volvo and other partners in the Indian market.
“Our own fleet all put together is 300 vehicles. We will expand that to about 400-450 vehicles over the next 18 months,” Barua said, adding the company’s partner fleets, wherein a large number of other operators are associated, operate with close to 5,000-7,000 vehicles daily.
Barua said that from the company’s position, the COVID-19 impact does exist. The reality is that there has been a rising shift of companies who want to work now with more organized players in logistics. Earlier the industry was more unorganised. Delhivery’s business has been able to grow recently due to huge demand in the logistics sector
At present, Delhivery is making about 1.5 million orders a day in their express business. It also handles close to about 3,000 tonnes of cargo a day. That’s around 50 percent higher than what it was the previous year. The company’s revenue progress expects to grow at least 35-40 percent this year.