This week, the leading interracial supply chain and logistics solutions provider, Transport Corporation of India Ltd, announced that its board has approved the consolidation of its real estate and warehousing division into a newly formed entity called TCI Developers Limited (TDL).
In a press statement shared through email, the firm disclosed that the demerged entity will encompass properties and investments valued at Rs 50 crore. The company's real estate holdings are situated in key cities including Delhi, Pune, Chennai, Bangalore, Ahmadabad, Nagpur, among others.
Management believes that the Real Estate and Warehousing undertaking will significantly contribute to expanding the company’s current real estate footprint into commercial opportunities, establishing a focused entity that will manage large-scale logistics infrastructure projects. These projects may include truck terminals, multi-modal logistics parks, and free trade warehousing zones, among others.
By creating a distinct entity, the management aims to establish a clear strategic direction while also securing adequate funding to support its ambitious development plans, leveraging anticipated profitability and growth prospects within the Real Estate and warehousing construction market.
Vineet Agarwal, the company’s Executive Director, articulated in the press statement, “Investment in realty and warehousing is more capital intensive and yields return over a longer period of time in comparison to the services model of the logistics business. Going forward, on a long-term basis, we would look at raising funds from strategic investors and financial institutions.”