Blue Dart earmarks Rs 100 cr capex

Logistics major Blue Dart Express has earmarked Rs 100 crore as capital expenditure for the financial year 2009-2010, a majority of which would be used for infrastructure upgradation. Separately, the company will also acquire a Boeing 757 freighter this year.

The company will use the investments to develop its existing facilities, technology, improve warehousing capabilities and other infrastructure. Blue Dart would be increase its headcount from the present 7,000 personnel during the financial year, Blue Dart Express Managing Director Anil Khanna said.

He, however, did not disclose the additional number of personnel the company would be recruiting.

The Rs 100 crore would be raised through internal accruals and is part of an earlier announced total investment of Rs 1,000 crore over the next 5-7 years. About 60 per cent of the total investment would be spent on aviation services and the rest on infrastructure facilities and technological upgradation.

The company has begun co-branding of its services with DHL, which holds 81 per cent stake in Blue Dart. The co-branding exercise will give both the companies presence over 350 retail outlets across the country.

Meanwhile, Blue Dart is also planning to acquire another Boeing 757 freighter increasing its total number of cargo planes to seven. The aircraft would be taken on lease and would be operated on one its existing routes.

The acquisition will be made from the Rs 200 crore the company had earmarked for the current financial year.

However, the route on which the aircraft would be fly is yet to decided. “One of our existing aircraft will go for overhaul and repairing and the new plane will be used on this route,” Blue Dart Express Head – Marketing Ketan Kulkarni said.