Allcargo to set up logistic business in Gulf
Domestic logistic player Allcargo will be venturing into the booming Gulf market where the logistic business is estimated to be about $100 billion.
By PTI |
MUMBAI: Domestic logistic player Allcargo will be venturing into the booming Gulf market where the logistic business is estimated to be about $100 billion.
"We are getting into the Gulf market in this financial year. We will have a logistic business, build warehouses and equipment business in the Gulf," Allcargo Chairman and Managing Director Shashi Kiran Shetty told PTI.
"The Gulf market is witnessing a boom, thanks to the high oil prices. UAE, Doha, Oman and Saudi Arabia are witnessing infrastructure development. So we see a huge potential," Shetty said.
Allcargo has a warehouse in Dubai. So it has a good idea about the market there, he said. "We will approach our existing customers for our logistic business, too," he said.
Locally, the company is planning to set up a division to become a third party logistic player because of the high growth rate of the business.
A third party logistic provider is a firm that provides outsourced logistic services to companies. It specialises in integrated warehousing and transportation services.
"Third party logistics business would be a bigger division in the company because of its high growth rate in the Indian market," he said.
Big companies want to leave the logistic part to a third player, he said.
"In matured markets such as Europe, the logistic business for a manufacturer is carried out by third party," he added.
"We are getting into the Gulf market in this financial year. We will have a logistic business, build warehouses and equipment business in the Gulf," Allcargo Chairman and Managing Director Shashi Kiran Shetty told PTI.
"The Gulf market is witnessing a boom, thanks to the high oil prices. UAE, Doha, Oman and Saudi Arabia are witnessing infrastructure development. So we see a huge potential," Shetty said.
Allcargo has a warehouse in Dubai. So it has a good idea about the market there, he said. "We will approach our existing customers for our logistic business, too," he said.
Locally, the company is planning to set up a division to become a third party logistic player because of the high growth rate of the business.
A third party logistic provider is a firm that provides outsourced logistic services to companies. It specialises in integrated warehousing and transportation services.
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"Third party logistics business would be a bigger division in the company because of its high growth rate in the Indian market," he said.
Big companies want to leave the logistic part to a third player, he said.
"In matured markets such as Europe, the logistic business for a manufacturer is carried out by third party," he added.
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