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Sitics Logistics eyes Rs 1,500 crore revenue in five years

Sitics Logistics has charted expansion, digitisation and acquisitions as the route. Already, the company has transitioned from a South India-based player to a pan-India player, expanding from five states to more than 20

October 21, 2021 / 01:28 PM IST
Representative image (Image: Shutterstock)

Representative image (Image: Shutterstock)

Kerala-based Sitics Logistics Solutions, a tech-enabled supply chain company, is eyeing an entry into the club of top 10 companies offering third-party logistics in the country in five years through expansion, digitisation and a series of acquisitions.

The boom in e-commerce during the COVID-19 pandemic has enabled Sitics to grow 40 percent year-on-year (YoY) and it is expecting a revenue of Rs 200 crore in FY22.

Founder and CEO AM Sikander said the company’s target is a revenue figure of Rs 1,500 crore in 2026, banking on a surge in profitability by 400 points, thanks to its non-linear business model and technology integration.

Even last year, the company’s growth was more than double that of the logistics industry at 25 percent, despite COVID-induced lockdowns. Last year, it posted a turnover of Rs 140 crore.

“Our clients are spread across multiple sectors, like cement, steel, pharma, FMCG, engineering and automobiles, and this has helped even out any downturn in one sector. E-commerce, too, has gone up considerably,’’ he said.

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On an acquisition spree

The company went for a string of acquisitions in the past few months. This includes Mumbai-based logistics tech startup Quifers, Delhi-based cold chain company Udgam Logistics, and a Bengaluru-based specialised transportation company. In addition, it has invested in drone delivery company TechEagle.

“We are perhaps one of the few companies in India to do this during this pandemic times. We are planning to acquire couple more; one each in e-commerce and the critical logistics vertical. These acquisitions are in keeping with our goal of transitioning from a solutions-based firm to a technology-based one. We aspire to be a tech-enabled supply chain company,” said Sikander.

Sitics plans to digitise its operations and expand to Europe, the United States, Canada, Indonesia, Singapore, Thailand and Vietnam. It has established a cross-border e-commerce solution in India and Malaysia, with a global freight forwarding division. The idea is to enhance the share of international revenue to 20 percent of the total revenue from the current 5 percent by FY26.

In India, the company has transitioned from a South India-based player to a pan-India player, expanding from five states to more than 20.

Sitics plans to have a blend of 50 percent of its revenue from traditional logistics and the rest from new-age digitally driven logistics.

“We want to be a one-stop destination for all supply chain needs for companies of all scales and stages. It should be like 'Think Supply chain, Think Sitics’,” he said.

Sitics was founded a quarter century ago and more than 90 percent of its customers are Fortune 500 India or Fortune 500 Global companies. It manages 1.23 million sq. ft warehouse space, 3 million shipments in e-commerce logistics and deploy more than 5,000 trucks in a month.
PK Krishnakumar is a journalist based in Kochi.
first published: Oct 21, 2021 01:10 pm

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