New Delhi: In order to curb cost on its cargo movement, country’s largest stainless steel producer Jindal Stainless Ltd (JSL) has set up a logistics arm and will be investing up to Rs100 crore in the firm in the next two years.
“We will invest Rs 50-100 crore in JSL Logistics Ltd in the next two years. Our board has already approved an initial investment of Rs25 crore in it,” JSL director (Finance) Arvind Parakh said.
JSL Ltd spends up to Rs800 crore per annum on movement of inbound and outbound cargo, including raw materials and finished alloy products.
Through its new logistics firm, the company intends to save the 20-30% margins that hired transporters make on ferrying cargo.
Initially, JSL Logistics will cater to the phase-I of the company’s eight lakh tonne stainless steel project, which is being set up in Orissa with an investment of about Rs6,000 crore.
Among the suppliers of heavy commercial vehicles, JSL Logistics is preferring Tata Motors, as the auto major is offering a better deal.
“We are preferring Tata Motors for procuring trucks as the company has offered us incentives for the deal,” Parakh said.