Gati mulls nurturing logistics startups

Company also plans to handhold the start-ups, and has progressed in engaging with them to make a strategic investment shortly

 

Gati Limited, a Hyderabad-based express distribution and supply chain solutions company, is exploring the burgeoning startups environment, and is looking at making strategic investments in startups in the logistics sector.

The publicly-listed company is also planning to handhold the logistics start-ups through guidance and consulting, and has already progressed considerably in engaging with start-ups to make a strategic investment shortly.

"Today, the start-up environment in the country is solving real business problems using technology and at a rapid pace. The budding organisations in every segment are being driven by innovation and largely utilise technology for growth and experience enhancement. We are engaging with the startups that are aligned with our business to make a strategic investment. These alliances and investments will help us build capability and capacity," said Dhruv Agarwal, chief strategy officer of Gati.

Gati, which has over 4,500 vehicles on the road excluding their fleet of refrigerated vehicles, currently delivers more than 280,000 packages everyday.

"On the flip side, we will be helping the start-ups utilise our expertise and knowledge garnered over more than 25 years of experience to their benefit and progress. The association will assist the start-ups to move up the learning curve faster. It is a win-win for everyone involved. This is a strategic step towards realising our long-term vision of handling one million packages a day by 2020," Agarwal said.

Gati Limited's scrip ended the trade at Rs 109.35 on the BSE, up 1.72 per cent, over the previous close of Rs 107.50.