DTDC Express, the Bengaluru-headquartered logistics, courier, and delivery services firm, is targeting high double-digit growth in FY25, according to CFO Aneel Gambhir. He said that the company plans to invest around Rs 150 crore this fiscal. These investments will focus on physical infrastructure, technological upgrades, and enhancing management bandwidth to support and accelerate the company’s growth trajectory.
The CFO said that DTDC, renowned for its unique business model leveraging over 16,000 channel partners, is poised for significant growth this fiscal year. “We expect high double-digit growth this year, driven by a positive economic outlook,” Gambhir told ETCFO.
“In the past year and a half, we have invested approximately Rs 250 crore, and we plan to invest another Rs 150 crore this fiscal year,” Gambhir said. “The company has been making substantial investments in physical infrastructure, technological upgrades, and management bandwidth to sustain and enhance its growth trajectory,” the CFO said.
Gambhir said these investments are being funded internally, maintaining the company’s debt-free status. However, DTDC might consider short-term borrowing to support future investments, he said.
Infrastructure and Technological Advancements
DTDC’s strategic investments include new operational facilities in key locations such as Mumbai, Chennai, Ahmedabad, Bengaluru, and Pune. “These facilities, equipped with automation capabilities, enhance our capacity to handle packages efficiently,” Gambhir said. The company is also upgrading its systems and management processes to handle larger volumes and ensure future growth.
Focus on Profitability and Risk Management
While growth remains a priority, DTDC is also focused on profitability. “Our current investments may have a short-term impact on the bottom line, but they will yield long-term benefits,” Gambhir said. The company is committed to cost efficiency and productivity, balancing investment in growth with a focus on profitability.
Risk management is another key focus area for Gambhir. “We prioritise managing risks related to cybersecurity and geopolitical factors, as they directly impact business sentiment,” he noted. DTDC’s agility in responding to such challenges ensures business continuity and resilience.
Outlook and Sectoral Challenges
Gambhir is optimistic about India’s economic prospects and its impact on the logistics sector. “This decade belongs to India,” he asserted, citing government initiatives like the Make in India program and the PLI scheme as catalysts for growth. However, he acknowledged the unpredictability of geopolitical scenarios and their potential impact on the industry.
Despite these challenges, Gambhir is confident in DTDC’s ability to navigate the evolving landscape. “With our strategic investments and a focus on leveraging technology, we are well-positioned for future growth,” he said.
Call for Government Support
Looking ahead, Gambhir sought continued government support in the upcoming Budget. “Policy enablement and infrastructure investments are crucial for the logistics sector,” he said. He also highlighted the need for reforms in borrowing policies and tax regulations to ease business operations.
Leveraging AI and Sustainability
The CFO acknowledged the nascent stage of generative AI but expressed confidence in its potential. “We are studying how AI can be leveraged to benefit our business,” he said. He highlighted the importance of governing parameters for AI, stressing the need for regulatory frameworks to manage its impact on businesses and ensure sustainable growth.
