In a strategic move, Kochi-based logistics firm Driver Logistics revealed its ambitious investment plan of INR 525 crore over the next five years. A significant portion, amounting to 30%, will be directed towards Karnataka, the company’s largest market, where it plans to enhance its infrastructure and presence.
The Karnataka project encompasses a state-of-the-art 32,000 square feet multi-client warehouse and partial truckload facility (PTL) at Makali in Bengaluru. Additionally, the company plans to establish seven smaller hubs across the state within the next six months.
Recognizing Karnataka’s pivotal role, Driver Logistics CEO Aqil Ashique stated that the state contributes over 35% to the company’s overall business. The investment plan includes adding 1 million sq feet of third-party logistics (3PL) – grade A warehouse space, bringing the company’s total presence to 1.5 million square feet in Karnataka over the next five years.
This expansion in Karnataka is part of the company’s broader strategy to add 5 million sq ft of warehouse space across the country in the next five years. Currently, Driver Logistics boasts over four lakh sq ft of grade A warehouse space in the state.
Founded in 2019, the company operates in seven Indian states and views Karnataka as a crucial hub for consolidating its regional operations. In a noteworthy move, Driver Logistics also announced plans to extend its footprint into Southeast Asia, with initial operations set to commence in Thailand.
The bootstrapped logistics company, which presently employs around 350 individuals in Karnataka, aims to hire an additional 150 employees for its operations in the state. According to Ashique, the focus on Bengaluru is strategic, as it is poised to become a corridor connecting South India to the rest of the nation.
Looking ahead, Driver Logistics plans to increase its warehouse count from 53 to 100 across its seven states, including Karnataka, Andhra Pradesh, Telangana, Kerala, Tamil Nadu, Maharashtra, and Gujarat, within the next 18 months. The company also eyes expansion into 8-9 additional states in the next three years, with Odisha being the first on the list.
In a recent development, reports suggest that the company has built a 1.5 lakh sq ft grade A warehouse worth INR 47 crore in Kerala, set to be operational in the next four months.
