Mumbai: Courier service provider DTDC Courier and Cargo on Tuesday launched a specialist logistics company called DotZot to cater to e-commerce companies.
The company also said this new venture is likely to attain revenue of Rs 100 crore by 2016 and contribute around 20 percent of its revenue by 2020.
"E-retail needs a focused, different and innovative approach for order fulfilment. DotZot will be decisive for merchants, who are looking at growing and retaining their e-powered customers. With this launch, we will provide new solutions to meet and solve the logistics needs of e-retail companies," DotZot Chief Executive Sanjiv Kathuria told reporters here.
He also said the investment in the new venture would not be much as DTDC has all the required logistics infrastructure and it would only spend on developing the IT processes along with hiring of people. All the investment will come from the internal accruals of the parent company, he added.
According to the courier firm, the e-commerce industry is currently estimated at USD 10 billion and is growing at a rapid pace, which provides ample opportunity for e-commerce logistics to grow in this space.
Talking about the benefits that the new offering can offer to the e-commerce companies, Kathuria said this kind of service delivery would reduce cost for e-commerce companies.
"We hope to attain a revenue of Rs 100 crore by 2013 and this operation should contribute around 20 percent to the gross revenue of DTDC by 2020," Kathuria said adding margins in this business would be at par with the other logistics businesses.
First Published: Tuesday, March 12, 2013, 17:07