TT Logistics, a subsidiary of the TTK Group, today announced the launch of its custom-bonded trucking division. The company proposes to invest around Rs 20 crore in the new venture.
The logistics arm of TTL was started to make up for the shortage in the domestic short haul routes between gateway airports and hinterland airports, and the manufacturing bases, said Arun Vasu, chairman and managing director, TT Logistics.
TTL has invested around Rs 10 crore to start the business vertical and the company will further invest another Rs 10 crore by the end of the first year of its operations, he added.
The investment was to acquire five trucks and for other purposes. It was funded through internal accruals.
The company will start operations in Chennai, which will be a hub and would network the cities of Bangalore, Hyderabad, Kochi, Thiruvananthapuram, Mumbai, Kozhikode and Coimbatore. The company will look at reaching out to all international flights operators and cargo fleets to provide this service and later it will be expanded to the special economic zones (SEZ), said Vasu.
TTL will provide its airline customers with dedicated trucks on a commitment basis to handle their trans-shipment cargo, he added.
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The company expects a turnover of Rs 20 crore by the end of the first year of its operations.
TTL is also planning to cater to niche segments of cargo movement and will look at starting its refer truck operations by the end of second year. This vertical will cater mainly to the pharma and perishable goods industry, said Vasu.
He added, 10 per cent of all air cargo in the country moves through bonded trucks. The volume is around 144,000 tonnes per annum. The industry is estimated to be around Rs 120 crore and controlled by three large operators cater to the industry.