New Delhi, May 2: Apollo International Ltd today announced its foray into the logistics business with diversification into the inland container depot/container freight station segment.
The first site for the new business has been identified as Mumbai's JNPT port and the proposed project will entail investment of about Rs 150 crore in its first phase, a company statement said today.
The company has appointed Capt Kapil Anand as the Chief Executive Officer to spearhead its logistics business.
Speaking about the foray, Apollo International Ltd Managing Director Raaja Kanwar said, ''the infrastructure segment in India is facing a lack of quality facilities. Apollo International's entry into the logistics business, specifically the ICD/CFS space, will help in reducing congestion at ports and facilitate the movement of import/export cargo in containers.''
He further said, ''We have identified the container freight stations segment as a great potential area and thus providing an interesting business opportunity for diversification.'' The company further plans to expand its operations to Gujarat and Kerala, and to initially set up operations in Western India as it contributes nearly 51 per cent of the total Indian market.
This will be followed by Southern India (24 per cent) and Northern India (19 per cent), the statement said.
North India is expected to be the fastest growing market of container traffic and is touted to emerge as the second most important region by 2009-10.
The company said it will evaluate various other catchment areas and expand its facilities in a phased and planned manner.
Apollo International Limited (AIL) is part of the Apollo Tyres group, engaged in imports and exports of various commodities including automotive tyres&tubes and enjoys the status of a recognised export house.