NECC eyes post GST opportunities, to double reach across India

"GST will change the way logistics operate, especially in the road transportation segment where we are very strong. Clients will be looking for players who can deliver across different destinations."

By: PTI | New Delhi | Published: June 4, 2017 12:33 pm
GST. Indirect Tax regime Representational Image

Logistics firm North Eastern Carrying Corporation (NECC) is embarking on an expansion drive with plans to double its reach to 500 locations across India in the next three to four years to tap opportunities after GST implementation. The company, which has a strong presence in East and North East, is gearing up to penetrate deeper in the region, while seeking to strengthen presence in South.

It is also looking to foray into air cargo category by 2018, a segment which it considers is underserved at present. In line with its expansion programme, NECC plans to add up to 100 new trucks in the next one to two years to its existing fleet of 150 vehicles.

“GST will change the way logistics operate, specially in the road transportation segment where we are very strong. Clients will be looking for players who can deliver across different destinations,” NECC Director Utkarsh Jain told PTI.

He said at present the logistics industry is extremely price competitive and fragmented with regional players even offering rates which are not sustainable. “Once GST is implemented, there will be considerable opportunity for logistic companies having requisite size, capabilities and reach,” Jain added.

The company is looking to leverage on its proven capabilities in critical segments like mining, FMCG and pharmaceuticals and by expanding presence and reach, he said. To tap the opportunities, he said the company is gearing up to expand its reach to “500 locations across India in the next three to four years from the current 250”.

Jain said the company has a strong presence in the East and North East markets and is “looking to penetrate deeper into the market there”. In the South also, he said: “We already have a presence and our aim is to expand further by adding more locations”.

As part of the company’s strategy, he said the firm intends to strengthen its fleet of trucks.”We have a strength of 150 trucks at present. We may be looking to add 50 to 100 more in the next one to two years,” he said while declining to comment on investments for the purpose.

On widening of NECC’s services, Jain said the company is considering to enter air logistics segment. “It may happen by 2018. This is a segment which is currently under served. There will not be requirement for major investments as it is about networking with carriers as we already have presence in many cities,” Jain said.

When asked about revenue growth, he said: “For FY18, we are looking at 10-12 per cent”.

In 2016-17, the company had posted revenue of Rs 548.69 crore as compared to Rs 539.75 crore in 2015-16, up 1.66 per cent.

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