In a bid to strengthen its operations in the southern region, third party logistics solutions provider VRL Logistics has acquired nearly 27-acre transhipment hub at Bengaluru for around Rs 229.30 crore.
The transhipment hub is currently leased by VRL Logistics since the past 10 years, the company said in a regulatory filing.
The company has acquired the property for a total sum of Rs 229.30 crore, inclusive of stamp duty and registration charges. The acquisition was partly funded through loan of around Rs 185 crore, it said.
Critical for south India operations
“The management is of the opinion that purchase of the said property would be beneficial for its operations in the long run. The hub is critical to the company’s south India operations. The availability of the premises is critical to our operations and owning it would ensure the continued availability for the company’s purposes,” VRL Logistics said.
It further stated that critical consignment routing activities such as aggregation of bookings, storage, destination sorting, vehicle placement etc. are undertaken here daily. “On an average around 3000 tonne gets handled at this transshipment hub daily, which is amply demonstrative of the importance of this hub within our overall south India operations,” it added.
Investment in infrastructure
VRL Logistics stated that it has made significant investments in creating the necessary infrastructure there including fuelling station, weigh bridge, solar installation, floor strengthening etc.
Spread across 27.30-acre, the transhipment hub occupies an area of around 5 lakh sqft and there is room for scaling up the hub capacity, it said.
“Along with the same all other related utility aspects such as fuel pump, weigh bridge, canteen, etc. have been constructed with significant financial outlay over the years,” the company added.
