Blue Dart, the express cargo carrier, is planning to expand its fleet. It intends to add two new aircraft at an estimated cost of Rs 60 crore (Rs 600 million), company chairman Tushar Jani told Business Standard.
"We are adding capacities to meet the requirement of express cargo. Blue Dart will buy two new aircraft. The cost will be borne by internal accrual. The expansion should take place within next eighteen month," he said.
Blue Dart owns three aircraft through Blue Dart Aviation, a 100 per cent subsidiary of the former. A fourth aircraft was acquired in June 2003.
It is the only express airline in the Indian skies, with scheduled night operations focused on early morning, time-definite deliveries.
Presently it touches down cities like Kolkata, Mumbai, Delhi, Chennai and Bangalore. Jani also informed Blue Dart has firmed up plan to enter SAARC countries through Sri Lanka.
"The operation there should start within a couple of months. We have signed agreement with Sri Lankan Airlines in this regard. The island market has lot of potential given the growing volume of Indo-Lanka trade," he informed.
Door-to-door service would be a prime growth driver. Jani said the market was growing at about 20 per cent per annum.
Back home, Blue Dart was also looking at expanding operation to north east states. It has been receiving requests for transporting ginger and tobacco products from the north-east.
Agartala was also a stronghold for agricultural and horticultural products. Blue Dart had an aircraft in Kolkata, which could be used for the purpose.
Worldwide charters accounted for five per cent of the company's revenues and Blue Dart would work towards achieving the target. Blue Dart recorded a turnover of Rs 315 crore (Rs 3.15 billion) and net profit of Rs 21.84 crore (Rs 218.4 million), last year and was looking at a double digit growth.
Blue Dart initiated domestic charter flights to meet the growing demand for speedy and secure distribution of large cargo volumes.
The growth in the packaged segment would be the main driver for Blue Dart's revenues. Packaged segment accounted for 65 per cent, at present.
Blue Dart's core business was domestic door-to-door, integrated, air express distribution and supply chain management.
