FM Logistic aims to double its warehousing space to 1.2 crore sq ft in three to four years from 60 lakh sq ft at present.
Alexandre Amine Soufiani, MD and CEO, FM Logistic said that the step was taken as the company expects demand for such facilities to increase in the aftermath of the pandemic. Mr Soufiani expects sales to return to pre-COVID levels by March 2021 as 90 per cent of the business has already recovered by December.
The company had outlined its plans to invest USD 150 million over the next five years to set up new warehouses in India, with focus on multi-client warehouses.
Grade A warehouses are categorised on the basis of construction quality, available space, location, amenities and clients, among others In March 2019, FM Logistic
With its plans to set up grade A facilities in all metro cities and “dynamic economic areas”, especially multi-customer units, and focus on urban logistics, FM Logistic looks to attain leadership position in the sector, Soufiani said.
“When we acquired Spear Logistics in 2016, there was only 20 lakh sq ft space and four warehousing units. Today we have 60 lakh sq ft in four years and we want to double this to take it to 1.20 crore sq ft under our operations in the next 3-4 years.”~Alexandre Amine Soufiani, MD and CEO, FM Logistic
The company has already announced its plans to add 40 lakh sq ft warehousing space in the next three years that will take its total space to 1 crore sq ft, he said, adding that it could add another 20 lakh sq ft. He said the company has added a total of 10 lakh sq ft space in the last six months, all for multi-customers facilities, including omni channel, pharma, e-groceries, FMCG, food, industrial, among others.
FM Logistic plans to have multi-customer facilities in Bengaluru, Delhi, Kolkata, Hyderabad and Chennai in the next 2-3 years. According to Soufiani, the company is expected to soon commence operations at its Bhiwandi facility in Maharashtra, which is spread in 4 lakh sq ft space with a part of it dedicated for pharma clients.
He said that the upcoming state-of-the art warehousing facility at Jhajjar in Haryana will also be operational in the second quarter of 2021. Earlier this month, FM Logistic had signed a strategic partnership with Welspun Logistic Park to develop 9 lakh sq feet space in Bhiwandi in the next 3 years.
“We could realise a quarter of our 40 (lakh sq ft). There is another 10 lakh sq feet of space that we have also signed for which 4 lakh (sq ft) we are going to get this month, another 4 lakh sq ft we will be getting in April/May next year,” he said.
Soufiani said the company has signed five new contracts during the pandemic period. “While omni-channel and auto segment account for 25 per cent of the company’s overall business, pharma accounts for 10 per cent of business and the rest comes from other segments,” he said.
“We expect revenue from omni-channel to grow to 40 per cent in the next 3-4 years as this is going to be the future. Auto revenue we expect to stay at the same level. However, we are also looking to double revenue from pharma to 200 per cent in the 3-4 years period as against 10 per cent at present.”~Alexandre Amine Soufiani
“Overall, we are looking at 35-40 per cent year-on-year growth in our revenue, going forward,” Soufiani added. The company wants to continue building new multi-customer facilities and signing big contracts. “In addition to the overall portfolio of services that we offer, omni-channel and urban or intra-city logistics are also extremely important for us,” he said.
Soufiani said the company has added 1,000 people in the last six months, taking its total head count to 6,000 from 2,500 in 2016. He said many of the projects are part of the INR 1,200 crore investment plan announced by the company in March last year.
“We have already consumed INR 200 crore of this. The pending INR 1,000 crore is still available for creating state-of the art A grade facilities in all the metro cities and the dynamic economic areas of the country,” he said.
Besides, it will also be used for intra-city logistics facilities, IT system as well as automation. The company is going to have provision for automation in areas such as loading/uploading, inventory stock taking, among others, he said.