VRL Logistics to expand fleet size to 7,200 trucks
HUBBALLI ; VRL Logistics plans to expand its fleet size to approximately 7,200 trucks by the next financial year, following its latest order of 1,560 trucks. Currently, it has around 5,700 trucks.
In line with the increasing fleet size, Mr. Vijay Sankeshwar, the Managing Director of VRL Logistics, also expressed his ambition to grow the company by 25–30 per cent in FY24. “We posted an annual turnover of ₹2,410.5 crore in FY22 and around ₹400 crore would be added to this for our turnover in FY23.”
It will be adding a variety of trucks, including 50 30-tonner trailer horses, 1200 10 wheeler–20 tonner vehicles, and around 400 trailers with carrying capacity, he said “These are a mixed set of trucks, such as 50 CNG trucks that would be used in Delhi.”
VRL Logistics has planned a total capex of ₹697 crore in FY24 for its fleet expansion and modernisation. The capex includes the cost of the chassis at list prices, bodybuilding, registration, insurance, and a margin for contingencies, according to information provided by VRL.
Scrapping old trucks
While it will be adding new trucks, the company will be scrapping around 1,000–1,100 of its old trucks this year. VRL indicated that the ongoing implementation of the Vehicle Scrapping Policy announced by the Government of India entails the company replacing its existing older vehicles.
Prime Minister Narendra Modi’s Atmanirbhar Bharat initiative has played a key role in the growth of this sector, said the MD. Prior to this, the company had placed an order 14 months ago for 1650 trucks with Tata and Reliance.