Gurugram-based third-party logistics warehousing firm, Varuna Group, is looking to make an investment around Rs 500 crore to set up 30 Grade-A+ warehousing facilities across the country in the next five years.
The company has at present 25 ‘Grade-A+’ facilities across 28 locations in India, with 1.2 million sq ft of warehousing space. It has presence at over 900 locations, including its offices, warehouses and loading-unloading points.
The company has its multi-user facilities spread across over five lakh sq ft space with the largest one at Rajpura, Punjab, while the rest is used for dedicated storage solutions and value-added services such as labelling, reverse logistics and refurbishing, via pay-per-use model. These facilities can handle loading and unloading of about 500 trucks per day.
An early adopter of technology in the domestic logistics space, including the use of GPS devices for vehicle tracking, the company is also looking to add 300 trucks every year from FY23 in its current fleet of over 1,800 trucks.
As each facility is expected to come up at a cost of around Rs 50 crore, this will entail a total investment of around Rs 1,500 crore. The company is looking at the hybrid model wherein both the developer and the company will invest.
Varuna Group will invest around Rs 15 crore in each facility while the rest around Rs 35 crore per facility will come from the developers. In all, the company will invest around Rs 500 crore in setting up these 30 warehousing units.
The company caters mainly to segments such as tyres, in which the company provides an end-to-end service, fast-moving consumer goods, pharma, lubes, food and beverage and other industrial products, among others.
The company will sell flexible warehousing space, a service which is currently not available in the country.
Currently, the customer doesn’t get flexible warehousing space in India and the company is offering flexible warehousing space and flexible trucking in between these warehouses.