NEW DELHI: Snapdeal on Monday announced it will invest around Rs 1,200 crore to beef up its logistics network and will acquire five to six companies in mobile technology, big data and supply chain space this year. The Jasper Infotech-owned online marketplace will also launch a four-hour delivery service (against one-day at present) in 10 cities shortly to go one-up on its rivals.
Snapdeal co-founder Rohit Bansal said the company has bought a minority stake in logistics firm GoJavas. “We have formed a strategic partnership with GoJavas and it will continue to function as an independent company. We will co-invest in building capacity for the future.”
The Delhi-based company expects its number of orders to go up by 10 times in the next two to three years. “We could be delivering around eight crore packages per month in the near future,” said Bansal. “We are working on differentiated services for shoppers, and logistics will be a big part of it.”
Interestingly, unlike its competitors, Snapdeal does not have in-house logistics and works with several third-party logistics service providers including GoJavas and Blue Dart to fulfil its shipping needs. The GoJavas deal is expected to help the company lock in a long-term logistics partner.
To bolster its supply chain model, Snapdeal is planning to increase the number of its warehouses from 50 in 20 cities to 75 in 30 cities in the next few months. With big-ticket investments from the likes of Softbank, eBay, Temasek, Blackrock and Premji Invest among others, the company has set a target of getting 10 lakh sellers on its platform in the next three years. At present, with 1 lakh sellers on board, it has also set up a merchant-training academy in the capital to train sellers for online trade.
Increasing the speed in nine railway corridors will help reduce logistics lead time, which will ultimately benefit industry, according to experts. “Announcements like Transport Development Corporation and multi-modal depots are bound to improve the delivery capability. However, the budget has not addressed the main concern of ‘logistics cost’ that will continue to remain high,” said S. V. Sukumar, Partner, KPMG in India. The logistics industry has welcomed many of the announcements made by Railways Minister Suresh Prabhu.
“The proposed investment plan (2015-19), which includes network expansion, national projects such as Northeastern connectivity, high speed rail, elevated corridor, station redevelopment and Logistics Park look promising. These activities would give a boost to the logistics sector, Rhenus Logistics India Joint Managing Director Parikshit Arya said. Connectivity of airports with railways would give a boost to the perishable goods sector and this would encourage the use of multi-modal transportation, industry players said. Transportation of agricultural goods by the Railways will help to cut down the cost of basic vegetables and food supplies, they said.
Airbus Group, manufacturers of commercial and military aircraft to helicopters and radars, will present a wide range of cutting-edge products and technologies at the 10th edition of Aero India.
The Aero India will be held from February 18-22 at the Air Force Station Yelahanka, Bengaluru.
Airbus Group will highlight its strong footprint in India and commitment to the Indian Government’s ‘Make in India’ campaign at the event.
Yves Guillaume, President-India, Airbus Group, said “We have been used to partnerships in India as is shown by our long-standing collaborations with several Indian public and private companies as well as R&D organisations and academic institutions.”