TT Logistics, a subsidiary of the TTK group, on Monday launched its custom bonded trucking division, and proposes to invest around Rs 20 crore in the new venture.
The logistics arm of TTL was started to cater to the shortage in the domestic shorthaul routes between gateway airports to hinterland airports and the manufacturing bases, said Arun Vasu, chairman and managing director, TT Logistics.
TTL has invested around Rs 10 crore in the business vertical and the company would invest another Rs10 crore by the end of the first year of its operations, he said. The investment was to acquire five trucks and for other purposes, and would be funded through internal accruals.
The company will start operations in Chennai, which would be a hub and network the cities of Bangalore, Hyderabad, Kochi, Thiruvananthapuram, Mumbai, Kozhikode and Coimbatore. The company will look at reaching out to all international flight operators and cargo fleets to provide this service, said Vasu, adding that it would later be expanded to special economic zones.
TTL will provide its airline customers with dedicated trucks on a commitment basis to handle all their trans-shipment cargo, he said. The company expects a turnover of Rs 20 crore by the end of its first year of operations.
TTL is also planning to cater to niche segments of cargo movement and will look at starting its reefer (refrigerated) truck operations by the end of its second year. This vertical would cater mainly to the pharma and perishable goods industry, said Vasu.
At present, 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.
