Mumbai: Videocon Group, which controls India’s largest consumer electronics maker, plans to set up a logistics company with Hitachi Ltd and Mitsui and Co. Ltd, as the nation’s rapid economic growth spurs trade.
The venture with the Japanese companies will start this year, Saurabh Dhoot, director of Videocon, said in a phone interview on Monday. He declined to give more details.
Growth spur: Videocon Industries Ltd chairman V.N. Dhoot.
“We have substantial infrastructure in logistics, like warehouses, land and trucks,” Dhoot said. “Now we want to convert that from a cost centre to a profit centre since there is significant scope for logistics business in India.”
Videocon, which runs the “Next” and “Planet M” retail stores, would be the initial customer for the venture, he said. The Economic Times newspaper earlier reported that Videocon was in talks with the two companies, without identifying the source.
Videocon Industries Ltd, the group’s listed unit, gained 0.36%, or Re1, to close at Rs275.60 on Bombay Stock Exchange on Monday.