The company plans to establish more warehouse facilities across India to cater to automotive industry,
Avvashya CCI Logistics Pvt Ltd (ACCI), a subsidiary company of Allcargo Logistics Ltd that recently announced investment to set up auto-ancillary warehouse facility in Guwahati (Assam), has plans to open more such facility across India to cater to auto component industry. “We plan to open similar facilities at key locations which will serve important markets for the industry. As the industry moves up the economic curves, we foresee clear demand for the quality facility on ‘shared facility’ basis and we need to establish our presence in the clusters before the boom happens,” said Arindam Chakrabarti, Head – Automotive and Engineering Solutions, ACCI, while interacting with APF’s Rakesh Rao.
Avvashya CCI Logistics will invest Rs 60 crore in the next two years to build an auto engineering part warehouse in Guwahati. In the first phase, which will be operational by the December 2018, the facility will be spread across one lakh sq. feet and provide employment to around 100 employees. In the second phase, the company plans to expand to three lakh sq. feet and employ more than 250 employees. A large part of the investment will be used towards automation in the state-of-the-art facility designed to meet global standards.
“The warehouse will be partially HD (heavy duty) racked warehouse, auto specific with shelving and block storage for odd dimensional cargo. It will be spread across three lakh sq. feet. The warehouse will provide end-to-end management which includes last mile delivery. Our warehouse location is always our strength whether it Mumbai or Chennai – similarly our warehouse in Guwahati is situated on DPS Road – which is on the highway from Kolkata towards Assam. We have a locational advantage in that we provide a gateway to the whole of northeast,” stated Chakrabarti.
As companies from different sectors and brands tap this market, the need for warehousing will grow manifold in this region. Explaining the potential warehousing market for auto components in North East, Chakrabarti, said, “Distance from the mainland was one of the key reason for North East not getting it’s due recognition and this is precisely the reason why this region will need more than its fair share of warehousing. The topography inhibits development of a robust rail network thus necessitating use of road transport – yet another reason for a booming auto trade. Also, North East is connected with Bhutan, Bangladesh, China, and Myanmar, and so is seen as an important international trade corridor and a location with commerce opportunities with these neighbouring countries.”
The warehouse will provide end-to-end management for aftermarket spare parts to service the North-East sector, which includes last mile delivery. “The North-East region in India has huge potential and is emerging as one of the strategic geographical markets. Our foray into the north east completes our Pan India presence and enhances our journey to provide the best of facilities in logistics across the country. The new facility launch is part of our business expansion strategy, thereby strengthening our leadership position and meeting our Prime Ministers mission to generate higher employment in this region,” said Adarsh Hegde, Joint Managing Director, Allcargo Logistics Ltd, in a press statement, while explaining the rationale behind the move.
The uniqueness of the warehouse lies in the degree of automation. Through smart integration of technology and service quality of highest standards, the company plans to increase its efficiency and make its logistics processes more effective. “The large chunk of our investment will go into the automation of the state-of-the-art facility designed to meet global standards. Our investment in technology for automation enables us to multiply manifold without compromising on quality and allows us to scale down quickly. This flexibility alongside scalability and economies of scale have helped us to be a leader in this space,” opined Chakrabarti.
ACCI provide sophisticated end-to-end supply chain solutions to enable clients (from various sectors including automotive) to thrive in a challenging market scenario.
“With zero downtime inbound solutions and 100-per cent tracing of material with our outbound capabilities, we are known to deliver mission critical solutions thus enabling our clients to thrive in an intensely competitive and challenging market like automobiles.”
– Arindam Chakrabarti,
Head – Automotive and Engineering Solutions, ACCI
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