India's Blue Dart to expand ground, air services in 2012

Logistics firm Blue Dart Express, the market leader in the Indian air express, has earmarked about 1.5 billion rupees of capex in 2012 to expand air and ground services, a senior official said on Tuesday.
The company had spent a similar amount over the past two years as capex and will not cut investments in 2012, despite slowing economic growth, Finance Director Yogesh Dhingra said.
"Our long term plans will not be impacted by a six-to-eight month dip," he said.
Debt-free Blue Dart, which has cash reserves of about 1 billion rupees, will fund the investment through internal accruals.
Blue Dart, in which DHL Express holds about 81 percent, follows a calendar year for financial reporting.
Blue Dart plans to invest up to two thirds of its capex on upgrading and expanding air infrastructure, Dhingra said.
The firm, which has a 44.5 percent market share of India's air cargo service, plans to expand air capacity by 20 percent annually as it seeks to enter tier 2 towns in the north east and southern India, Managing Director Anil Khanna said.
13/12/11 Reuters

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Categories: Cargo Dec 2011