Reliance in deal with CONCOR for logistics venture
Reliance Logistics Pvt Ltd, a subsidiary of Reliance Industries Ltd, on Monday entered into a 51:49 joint venture with state-owned Container Corporation of India, reports Samiran Saha.business Updated: Sep 25, 2007 00:02 IST
Reliance Logistics Pvt Ltd, a subsidiary of Reliance Industries Ltd, on Monday entered into a 51:49 joint venture with state-owned Container Corporation of India (CONCOR) Ltd to form a joint venture company, Infinite Logistics Ltd, a company release said.
The joint venture company will provide end to end inter-modal logistics solutions to its customers.
Infinite Logistics will provide customised and standard contanerised transportation by road and rail and distribution-related ancillary services.
According to the release, the expected customer base will include manufacturers, traders and retailers from different industries across the country.
India already has 15 players in the logistics sector and the business is expected to grow at over 15 per cent in the next decade.
Logistics contributes about 12-13 per cent of the country’s gross domestic product.
Concor was established in 1989 after it took over seven container terminals from the Indian Railways. Today, it has a network of 57 container terminals all across the country.
Apart from terminal handling and inland transportation of containers by rail and road, the company has also expanded to cover management of ports, air cargo complexes and establishing cold chains.
Reliance Logistics, India’s largest service provider, has a turnover of Rs 1,730 crore, moves about 15 million metric tonnes of cargo per annum and has fleet of more than 400 trucks and tankers, the release said.
Reliance Logistics is also in talks with automobile giants for providing integrated logistic services. It caters to around 25 percent of the group’s logistics need and earns up to 65 per cent revenues from group companies.