Business
LEAP India has emerged as leading player in Indian Pallets and FLC Pooling Market with Lions market Share
Projects revenues of $ 150 million in the next five years
Mumbai 05th October, 2017: LEAP India, leading logistic solutions provider in asset pooling. The company is targeting $ 150 million revenues in the next five years.
The company has already invested Rs. 110 crore equity raised in the last three years and Rs. 70 crore debt raised in manufacturing and deploying of pallets and FLCs with all leading FMCG companies, Courier and cargo transport companies, E-commerce, Beverages, Dairy, Food, Pharma and leading automobile players in the country.
The company is in the process of raising another Rs. 100 crore debt from Banks to take the current pallet count from 1 million to 3 million in the next three years. On an average Rs. 1.31 paise per day rent is paid for pallets taken on rent.
LEAP India has been successful in changing the way goods are stored and transported in the country. Post GST the requirement for consolidated and large warehouses to store the goods and distribute across the country has become necessity. The need for having separate warehouses in each State is history. In the age of vertical storage of goods pallets play major role in efficient storage and transportation of goods.
The current size of the pallets market in the country stands at Rs. 5000 crore. We are currently eying for Rs. 100 crore revenue for the current year. By end of 2022, with 4.5 million pallets deployed in the market, our market share will be at 60 %. There is huge export market to be waiting to tap. Once we gain considerable market share in India, we would enter other nearby markets.
Foldable Large Containers (FLC) is another segment of our business, which currently contributes 40% of our business. These are currently used by automobile and pharma sectors. This pie is also growing over a period of time. The rapid growth in automobile sector in the country will increase the need for transport of spare parts, which will in turn spur growth for FLCs. The two wheeler production is set to rise to 34 million and passenger vehicle market would reach 10 million by 2020.
We would continue to grow our revenues at 200% for the next three years as palletisation is new concept for Indian market and there is still lot of untapped potential in this segment.
Commenting on the development, Mr. Sunu Mathew, MD, said that, “We would like to change the way goods are stored and transported in this country. The supply chain efficiencies are need of the hour for FMCG, Automobile, E-commerce, Beverages, Food, Dairy, Pharma companies to survive. The current situation has reached a level where the corporates have to palletise or perish. The developed market has almost reached 100% palletisation in the last decade and the goods are moved till the door steps of the consumers on pallet”
He added that, “we have not even reached a level where goods from corporates are transported to wholesalers and dealers by pallets, there is long road ahead to reach to pallet in and pallet out concept across the segments of the businesses.”
The company has good presence across India and can serve the clients from across India. This is something other players will not be able to replicate easily or immediately. Currently we have 14 manufacturing centres and 22 warehouses and 200 people in asset management division to manage the pallets. The company is currently providing pallets for more than 200 leading corporates for FMCG, Automobile, E-commerce, Dairy, Beverages, Pharma and Food sectors.
