VRL Logistics plans to increase fleet size to 7,200 trucks.

According to the MD, Prime Minister Narendra Modi's Atmanirbhar Bharat project has had a significant impact on the growth of this sector. Prior to this, the business had placed an order with Tata and Reliance for 1650 vehicles 14 months prior.

Following its recent order of 1,560 trucks to Ashok Leyland, VRL Logistics intends to increase its fleet size to about 7,200 trucks by the next fiscal year. It currently has 5,700 trucks.

In keeping with the growing fleet size, Vijay Sankeshwar, the Managing Director, has stated his desire to grow the company by 25-30% in FY24.

"These are a mixed set of trucks, such as 50 CNG trucks that would be used in Delhi," Sankeshwar explained.

According to the company, it will bring in a variety of trucks, including 50 30-tonner trailer horses, 1,200 10-wheelers and 20-tonner vehicles, and approximately 400 trailers with carrying capacity.

"We had an annual turnover of 2,410.5 crores in FY22, and this would be increased by around 400 crores in FY23," he said.

VRL Logistics has projected a total investment of 697 crores in FY24 for fleet expansion and modernization. According to VRL, the capex covers the cost of the chassis at list pricing, bodybuilding, registration, insurance, and a contingency margin.

Recycling old trucks

VRL stated that the Centre's vehicle scrapping policy's continuous implementation necessitates replacing older vehicles. While adding new vehicles, the business plans to discard 1,000-1,100 of its existing trucks this year.

According to the MD, Prime Minister Narendra Modi's Atmanirbhar Bharat project has had a significant impact on the growth of this sector. Prior to this, the business had placed an order with Tata and Reliance for 1650 vehicles 14 months prior.