Kerry Indev pushes further into last mile delivery segment with 500 crore investment

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Kerry Indev Logistics has launched 8 new last mile delivery services with a target of doubling its top line to INR 3,000 crore by next financial year. With Kerry Indev Express, a new brand worth around INR 500 crore, the company has entered into last mile connectivity services.

The new services have been tailored to suit different customers of B2B and B2C segments under the brand Kerry Indev Express. The new brand will act as a door-to-door express service operating through 200 service centres on a Pan-India basis.

The services offered under Kerry Indev Express include:

Same Day ExpressDelivery within 6-8 hours in the same city or between designated cities
Early ExpressOvernight delivery across designated cities
Priority Package ExpressDoor-to-door delivery of valuable documents and packages
Priority Freight Express – AirFor next day or door-to-door delivery for commercial and urgent shipments to major metros and non-metros
Priority Freight Express – SurfaceIn a day-definite door-to-door delivery solution for commercial and urgent shipments to major metros and non-metros
E-Commerce Business ExpressTimely deliveries, international courier clearances for cross border e-commerce services, cash on delivery, drop ship service, reverse logistics
Warehousing Solution ExpressFulfillment centre services and first & last mile distribution services
Critical Solutions ExpressTemperature controlled distribution, passport & critical documents handling/jewellery cargo handling & clinical trial/biological sample supply chain solutions.

“We are launching our express service today which will enable us to reach the doorsteps of consumers,” Kerry Indev Logistics chairman S Xavier Britto said. He said the company has now touched all the points in the logistics chain and is expecting revenue to double to INR 3000 crore by FY2020-21 from INR 1,500 crore now.

“We have made a strategic investment in Velex Logistics, which is involved in supporting and auxiliary transport activities for courier services. With this, we get access to their 3,000 pin-codes which we want to increase to 6,000 by this December. “We will continue to make investments in the next couple of years to expand our presence in e-retailing and e-commerce segments,” he said.

Britto said the company has already announced plans to invest INR 500 crore over the next two to three years for expanding its presence as well as to enter global markets. “Most of the capex will be funded through internal accruals. But once we reach the INR 3000 crore revenue milestone, we will think of launching an initial public offering,” Britto added.

He said the just launched express service will operate through over 200 centres, with 1500 staff and a fleet of vehicles in the first phase and will also focus on technology-driven delivery solutions like parcel lockers. The new vertical will cater to the process and time-sensitive delivery requirements of e-tailers as well as pharma, automobiles, engineering and telecom businesses.

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