Here's why VRL Logistics share was buzzing in trade on December 9; details

VRL Logistics share: Shares of transportation and logistics company, VRL Logistics, rallied as much as 6.21 per cent to hit an intraday high of Rs 571 per share. 

 

The rise in VRL Logistics share price came after the company announced that it has purchased the existing transhipment hub occupied by the company on lease basis at Bengaluru for Rs 229.30 crore, inclusive of Stamp duty and Registration charges. 

 

“The company has been in possession of the said premise on lease basis since over 10 years and has been using the said property for its transshipment operations at Bengaluru,” VRL Logistics said in a statement.

 

 

The transshipment hub serves as a vital operational centre, handling critical activities such as booking aggregation, storage, destination sorting, and vehicle placement, operating round the clock, 365 days a year, VRL Logistics revealed..

 

Over the years, the company has made substantial investments in this facility, including the installation of a fueling station, weighbridge, solar panels, and floor strengthening measures. The management strongly believes that acquiring this property will significantly benefit the company’s long-term operations, it added.

 

The company further claimed that the hub plays a pivotal role in the company’s South India operations. 

 

Currently, the hub handles an average throughput of 3,000 tonnes daily, underscoring its critical importance within the company’s regional supply chain. The property spans an extensive 27.30 acres, with the hub occupying approximately 5 lakh square feet. 

 

The facility also includes essential infrastructure such as a fuel pump, weighbridge, and canteen, developed through major financial investments over the years. Furthermore, there is ample scope for scaling up the hub’s capacity to support future growth.

 

About VRL Logistics 

 

VRL Logistics, founded in 1983, is among the leading Indian logistics and transportation companies. Headquartered in Hubballi, Karnataka, VRL has grown to become one of the most prominent players in its field. The company operates across 23 states and 4 union territories in India, offering a wide range of services to meet diverse transportation and logistics needs.

 

One of VRL's core offerings is goods transportation, where it provides full truckload (FTL) and less-than-truckload (LTL) solutions to accommodate both large and small shipments. The company also runs a courier service for small parcels and documents, ensuring reliable and efficient delivery options for businesses and individuals.

 

In the passenger transportation sector, VRL is a major player, particularly in the private travel industry. Alongside its extensive bus network, the company offers air passenger transportation, catering to travellers looking for both luxury and convenience in their journeys.

 

VRL Logistics also provides warehousing and third-party logistics (3PL) solutions on a nationwide scale. Its warehousing services support businesses across industries with reliable storage and distribution, which are vital components in today’s supply chains.

 

The company’s bus operations include a large fleet of tourist buses that serve passengers across various regions, enhancing connectivity and making VRL a familiar name in the Indian travel landscape.

 

Beyond logistics, VRL has ventured into power sales and certified emission reductions (CER) units sales, marking its entry into the energy sector. 

 

At 11:45 AM, VRL Logistics shares were trading 5.90 per cent higher at Rs 569.30 per share. In comparison, BSE Sensex was trading 0.02 per cent higher at 81,723.57 levels.