Date:15/03/2006 URL: http://www.thehindubusinessline.com/2006/03/15/stories/2006031502500700.htm

Back TCI plans Rs 300 cr for expansion

Raja Simhan T.E.

Chennai , March 14

Transport Corporation India (TCI), a Gurgaon-based transport company, plans to double its group turnover to Rs 2,000 crore and achieve 20 per cent profitability by 2009.

It will invest Rs 250-300 crore in expansion over the next 2-3 years, according to Mr Vineet Agarwal, Executive Director.

TCI will spend Rs 50-100 crore every year on fleet expansion, new warehouses, IT, ships, and plant and machinery. It annually moves 5.5 million tonnes of goods worth nearly $10 billion, he said.

According to Mr Agarwal, by the year-end TCI will have nearly five million sq ft of warehouse space, which could be owned or leased. The company plans to have a warehouse in each of the four regions, and one in central India.

There is a lot of scope for warehouses. Once value-added tax is introduced across India, there will be only one warehouse for goods to be distributed across the region. The warehouses will be 30-35 ft high, seven-storey rakes, temperature-managed, and dust-free, and every material will be palletised, he said.

Mr Agarwal also said that like outsourcing in the IT services industry, companies in other sectors, including manufacturing, are getting rid of non-core areas.

For instance, TCI started its relationship with Café Coffee Day in a small way by replacing non-perishable items in 15 shops in Delhi. This relationship expanded to replacing perishable products using TCI's refrigerated trucks. TCI now moves coffee beans from various locations, and also helps Café Coffee Day in its Customer Loyalty Programme, he said.

"From plantation to end-consumer, we are now doing everything for Café Coffee Day by providing a complete transport handling solution."

They are concentrating in their core areas, including improving the quality of coffee. TCI was able to help Café Coffee using good warehouses.