Future Supply Chain says will double warehousing capacity in next 2-3 years

Company posts revenue of Rs 2.77 billion for September quarter 2018, up 34 per cent from Rs 2.05 billion in the corresponding quarter last year.

Future Supply Chain Solutions Ltd (FSC), an integrated third-party logistics service provider of the Future Group, plans to more than double its scale of operations and warehousing capacity over the next two or three years.FSC has added 1.8 million square feet of warehousing space so far this year to its existing capacity of 4.58 million square feet, to raise its overall storage space to 6.4 million square feet. This year alone, the company plans to add another 1.2 million square feet of warehousing space primarily in the consumer-centric areas to meet the requirement of its anchor, Future Group of companies and giant external customer in FMCG and retail. 

The company posted a revenue of Rs 2.77 billion for the September quarter 2018, up 34 per cent from Rs 2.05 billion in the corresponding quarter last year. Future Group companies contribute nearly 60 per cent of FSC’s annual turnover while external clients make up the rest.

Mayur Toshniwal, Managing Director of FSC, said the company is moving from direct-to-store delivery to a distribution centre-based model to serve its anchor client’s food and FMCG business satisfactorily. The company is setting up several distribution centres to cater to the enormous opportunity in food and FMCG segment within Future Group.

“We want to increase our share in the Future Group’s spend on logistics. At the same time, we have also signed agreements to meet supply chain requirements of external clients including large companies,” said Toshniwal.

In the past six months, the company has signed several new clients with billing potential of over Rs 900 million. The company maintains it has a healthy sales funnel that will drive growth in non-anchor revenue.

Toshniwal says that the company’s philosophy is to offer customised solutions that suit every requirement of its customers. “Every customer on our board has a different business solution. Hence, we serve our customers purely on their customized requirement of supply chain solutions,” said Toshniwal. As a third-party logistics and warehousing solution provider, FSC does not own stock stored in its warehouses.

FSC recently acquired Vulcan Express, a company in the last-mile delivery business, to serve e-commerce and retail clients, thus adding a new capability to its service offerings.

“GST has become a big enabler to improve efficiency across the entire logistics value chain by improving the reliability of the supply chain and time to market. GST will likely benefit the organised sector driven by the need for increased compliance requirements. E-way bill has become a big favour for entire logistics movement from one place to another,” said Toshniwal.