Logistics and cargo major, DRS Group, plans air freight service
29 May 2008
New Delhi: Indian logistics and cargo company, the DRS Group, is in a advanced stage of launching a cargo airline and developing a retail supply chain across the country. Company officials said that Rs280 crore has been set aside towards developing these enterprises.
''We have applied to the ministry of civil aviation for permission to start a cargo airline. A decision is expected in the next three to four months,'' said DRS director, AK Aggarwal.
The company is raising Rs100-crore debt to finance its plans. This will be over and above the Rs100 crore it had raised from private equity player Kotak Mahindra last year.
According to company officials, leased aircraft would be used to run the freighter services. Operations will be launched on busy trunk routes, officials said.
The company's second major initiative is to capture a large part of the organised retail supply chain segment in Tier I and Tier II cities. Officials said that the company had earmarked Rs200 crore for the expansion of its warehousing capacities for the cold chain.
The plan is to add three million square feet of warehousing space in towns such as Mumbai, Kolkata, Hyderabad, Nasik and Bhiwandi.
With demand for cold chain facilities increasing, the group plans to double its warehousing capability for fruits, vegetables and other eatables to five million square feet. The existing facilities of the group are being used to the maximum,officials said.
The company, which has a turnover of Rs275 crore, is one of the largest home cargo movers in India. It is also a major freight carrier for industrial goods, especially dry bulk cargo.