Logistics start-up Rivigo places Rs 500 crore order with Ashok Leyland

Company to buy 1,200 vehicles from Leyland, deal will ramp up its pan-India fleet by 80%

Rivigo, a new-age logistics start-up, has ordered 1,200 medium and heavy commercial vehicles (M&HCVs) -- the largest commercial order of trucks by any surface transport company -- from Ashok Leyland Ltd for its pan-India fleet. The value of the order is estimated to be around Rs 500 crore.

The purchase of the 1,200 additional vehicles will increase the Haryana (Gurgaon)-based Rivigo's fleet size by 80 per cent to 2,700 vehicles in the next 6-7 months.

This is the single largest commercial vehicle order after Siddhivinayak Logistics of Gujarat bought 1,300 trucks from Tata Motors in 2012.

Deepak Garg, Founder and Chief Executive Officer, Rivigo said, "At Rivigo, it's very important to us to demonstrate our commitment with action, which is why we aim to have the largest fleet in the industry. This order is a testimony of our commitment to offer the best in services and thus create value for our customers."

 

With this order, Rivigo is placed among the top-5 players in the surface transport industry, which is otherwise dominated by small fleet owners with an average fleet size of 5-10 trucks.

The logistics sector, which otherwise is dominated by unorganised players (80 per cent), is seeing an increase of participation from organised players who see better prospects after the passage of the GST Bill. The sector, in fact, is seen to be one of the biggest beneficiaries of GST, and is estimated to save a potential $200 billion worth of wasteful inventory once GST kicks in, Garg said.

Garg added that the Indian logistics sector can fulfill India's GST dream by enabling shorter, predictable transportation lead times, by adopting zero warehousing as the best warehousing strategy, and by building transparency and visibility of inventory through extensive use of technology.

), Rivigo has disrupted the surface transport industry by introducing a revolutionary "Driver Relay" model and integrating technology with it to ensure delivery times that are 50-70 percent lesser than traditional trucking companies. It is rapidly expanding its market reach and is already one of the largest logistics service providers in India that operates across diverse segments like e-commerce, pharma, F&V, textiles, electronics, and consumer durables.