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Pantaloon ventures into logistics

20
Sep '06

Pantaloon, domestic retail major, is entering the logistics space with the launch of a new logistics division — Futures Logistics, for its huge captive business.

The new division, which would receive around Rs400-500 crore initial investment, will soon spread out to provide third-party logistics services to the growing retail sector.

To start with, the focus will be on modes of surface transport like roads and rail only. In the foreseeable future, sea and air routes would also be well thought-out as per the requirement.

For initial one or two years, Futures Logistics will cater only to Pantaloon Retail. Thereafter, it is expected to move into consulting and being a service provider for others.

The real challenge in retailing would be operating those outlets and putting the products on the shelves. This is where Futures Logistics is going to give Pantaloon the much required cutting edge.

In order to cut cost and enhance efficiency, Futures Logistics will operate under Pantaloon Retail and attain synergies of cost efficiencies with knowledge management.

As part of the cost cutting, Pantaloon is also going to reduce its warehousing costs through a consolidation process, which will make their warehousing system more efficient.

In another cost saving measure, the new division will bring under one roof 10 dispersed warehouses in Bangalore.

In near future, Pantaloon will broaden its expertise in this division as an independent logistics provider.

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