Mumbai: Domestic logistics player Allcargo will venture into the Gulf market where the logistics business is estimated to be about $100 billion.
“We are getting into the Gulf market in this financial year. We will have build warehouses and equipment business in the Gulf,” Allcargo Chairman and Managing Director Shashi Kiran Shetty told PTI.
“The Gulf market is witnessing a boom, thanks to the high oil prices. UAE, Doha, Oman and Saudi Arabia are witnessing infrastructure development. So, we see a huge potential,” Shetty said.
Allcargo has a warehouse in Dubai, so, it has a good idea about the market there, he said. “We will approach our existing customers for our logistics business, too,” he said.
In the country, the company is planning to set up a division to become a third party logistics player because of the high growth rate of the business.
A third party logistics player provides outsourced logistics services to companies. It specialises in integrated warehousing and transportation services.
“The third party logistics business would be a bigger division in the company because of its high growth rate in the Indian market,” he said.
Big companies want to leave the logistics part to a third player, he said.
“In matured markets such as Europe, the logistics business for a manufacturer is carried out by the third party,” he added.