Established to cater to the whopping demand from the retail sector, Lohia Warehouse – a part of the Lohia Group – has said it will double its stock keeping units (SKU) capacity to 25,000 by next year.
It currently handles around 13,000 SKUs and 32 products lines including apparels, FMCG, food and furniture among others.
The company, which handles backend operations for players such as Bharti Walmart, Carrefour and Vishal Mega Mart, said it is witnessing a three-fold growth over last fiscal year spurred by the growth in organised retail.
“We have managed to grow three-folds even when the industry is at a nascent stage. We believe that permitting foreign direct investment in the retail sector would spur the growth in the back-end and supply chain,” Mr Pyush Lohia, Director, Lohia Warehouse, told Business Line.
Big-box retailing
The company, which was established in 2007, was set up primarily to reduce the gap between the manufacturers and retailer.
“Besides sourcing products for various clients in the modern retail space, we also provide services like, logistics, financing and merchandising, warehousing and distribution to its customers. Also we co-develop private brands along with big box retailers”.
Industry watchers point out that most big box retailers have been trimming their supply chain costs by outsourcing it to third party players. This helps them to focus on their core business.
According to a Frost and Sullivan report, the domestic logistics and supply chain market earned revenues of $75.19 billion in 2009, representing about 6.2 per cent of the country’s GDP. The market is expected to reach $120.42 billion in 2014, witnessing a CAGR of 9.9 per cent between 2009 and 2014. Transportation segment accounts for close to 62 per cent of the total market reiterating the fact that it is the most important logistics function for all industries.
More warehouses
On whether the company is planning to set up its own warehouses, Mr Lohia said, “We will be establishing two more warehouses in Mumbai and Chennai. These will be leased facilities and will be operation by next year.” The company has warehouse in Delhi.
Speaking on its expansion plans, Mr Lohia said the company plans to get listed in three years besides also establishing base in Africa, West Asia and South-East Asia among others.
Source : The Hindu Business Line
