Logistics and supply chain firm Trackon said it plans to invest aggressively in technologies including robotics and automation over the next 6-12 months to improve productivity and efficiency. It also expects to generate Rs 100 crore or nearly a fourth of its revenues from B2B operations.
At present, the company has around warehouses across the country, mostly servicing B2C or corporates and plans to nearly double its services to 10,000 pin codes over the next few years, from 5600 pin codes now.
“Automation and innovation can be utilised in various layers of the supply chain to pave the way for a digital supply chain due to the increase in internet accessibility and cost-effective technology. The main trend affecting the logistics industry is supply chain innovations,” said the company’s chief executive officer Rajesh Kapase.
“When the power of the Internet of Things (IoT) is combined with keen data-driven insights and deployed at various supply chain levels, it has an impact on the business potential to boost efficiency and aid in quicker revenue generation and cost savings.”
The company plans to invest up to Rs 10 crore in end-to-end tech integration, automating and digitisation of warehouses which will strengthen its supply chain network.
The company increased its revenue by 35% last year despite the Covid-19 pandemic. Revenues grew from Rs 222 crore in FY21 to Rs 285 crore in FY22.
It expects to end FY23 at Rs 370 crore on the back of an improved festive season this year post a two year lull in consumer spending. About 10% is expected to come from digital transformation initiatives, the company said.
“The advantages of logistics automation are numerous, including cost savings in labour, inventory, and energy, among other things. Furthermore, the logistics process is carried out more quickly, precisely, and qualitatively, as well as more economically and efficiently. It greatly lowers errors and enhances customer service,” added Kapase.
The global logistics market is about $200 billion and is likely to grow exponentially to about $350 billion by FY26-27, as per industry research.
Founded by PK Anand, Dinesh Rautela, PK Singh, and YK Dabas in 2004, the company recently launched road express to boost its B2B Express sales.
The company has also been focussing on its premium product – Prime Track as a bluechip service and prompt delivery, catering to high value and urgent consignments.
