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Karam Chand Thapar to invest Rs 40 cr in subsidiary

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BS Reporter Mumbai
Last Updated : Jan 20 2013 | 8:45 PM IST

Engaged in coal and bulk logistics, Karam Chand Thapar & Bros (Coal Sales) Ltd (KCT), a diversified business portfolio including equipment manufacture and execution of large-scale infrastructure projects, announced its expansion into the container logistics sector with the establishment of a wholly owned subsidiary, Indicon Logistics Ltd.

Indicon Logistics has set up a state-of-the-art manufacturing facility in Ranchi, Jharkhand at an estimated cost of Rs 40 crore. This facility is a first of its kind, and is India's largest container manufacturing unit in terms of installed capacity. The company aims to be a technology leader in the container manufacture segment, equipped with the latest and most advanced technology for production and operating compliance at par with global standards.

KCT plans to set up several such facilities across in India to take advantage of the growing demand in the logistics sector, which is currently pegged at $100 billion, and is estimated to grow at 20 per cent CAGR over the next three years.

Announcing the Group's foray, Vikram M Thapar, Vice Chairman, KCT Group said, "The KCT Group has close to seven decades of business heritage. In the bulk logistics sector we have catered to a wide variety of industries in both the public and private spheres. With Indicon Logistics, our vision is to be a leading player in all aspects of the inter-modal container logistics industry."

Speaking on the company's future plans, Varun Thapar, Director, Indicon Logistics said, "In the first phase of operations, which entails container manufacture and container leasing, we are looking to invest about US $20 million. We have already commissioned our first green-field facility that is the single largest container manufacturing factory in India today. Over the next phase of expansion, we are looking to invest approximately US $100 million as we move from manufacturing and diversify into the development of logistics infrastructure like integrated logistics  hubs, Container Freight Stations (CFS), Inland Container Depots (ICD) and cold chain and warehousing solutions."

The company is equipped to produce all kinds of container units, including standard ISO boxes, specialized containers like bunk houses, custom-built containers, tank containers, reefer (refrigerated) containers etc. The Company is also engaged in container rental services across India under its 'Kargatact' brand. The extensive and latest model hire fleet consists of safe and well maintained containers available for short, medium and long term lease from various locations across India.

Responding to the ever growing demand of the cold chain logistics sector, the company has invested heavily in bringing sandwich panel technology to India with the import of the largest and most cutting-edge sandwich panel equipment in the India, capable of producing insulated panels made of GRP, stainless steel, aluminium etc. 

With the largest installed capacity in the country, dedicated and automated manufacturing lines for different products, India's most comprehensive ISO testing facility, Indicon is looking not only to target customers with bulk demand, such as container train operators and shipping companies, but at several other industry verticals, including road logistics operators, construction industry, automotive industry, cold chain supply, bulk liquids transportation, pharmaceuticals, heavy engineering, energy, defence, space research, meat & dairy, fmcg and  retail industry.

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First Published: Apr 01 2011 | 12:21 PM IST

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