Gati to invest in startups to hit 1 mn deliveries a day
16 Feb 2016
Logistics firm Gati on Monday said it will invest in start-ups in the delivery space as the firm tries to achieve its target of delivering 1 million packages per day by 2020.
The express delivery and supply chain solutions firm is exploring strategies for growth to achieve its vision, it said in a regulatory filing.
"Gati is exploring the burgeoning start-ups environment and is looking at strategic investment in start-ups in the logistics sector," it added.
The firm has progressed "considerably" in this direction, Gati said, adding that it will "shortly" announce a strategic investment.
"We are engaging with the start-ups that are aligned with our business to make a strategic investment. These alliances and investments will help us build capability and capacity," Gati's chief strategy officer Dhruv Agarwal said.
This is a strategic step towards realising Gati's long-term vision of handling 1 million packages daily, he added.
The company reported a 33 per cent decline in consolidated net profit at Rs7.67 crore for the quarter ended 31 December 2015, as against Rs11.44 crore in the year-ago period.
The company's total income fell to Rs417.80 crore as against Rs423.31 crore in the corresponding quarter of the previous fiscal.
Gati has over 3,100 business partners across India and operates a fleet of more than 5,000 vehicles. It has market presence in Asia-Pacific region and South Asian Association for Regional Cooperation (SAARC) countries with offices in China, Singapore, Hong Kong, Nepal, and Thailand.
