Sitics to hit ₹200 cr revenue this fiscal; aims for ₹1,500 cr by 2026
Sitics Logistic Solutions has bucked the pandemic-induced downward economic growth trend and is eying revenue to the tune of ₹200 crore by the end of this fiscal, a 40 percent+ growth y-o-y.
October 21, 2021: Sitics Logistic Solutions has bucked the pandemic-induced downward economic growth trend and is eying revenue to the tune of ₹200 crore by the end of this fiscal, a 40 percent+ growth y-o-y.
The company has now set an ambitious target of growing into a ₹1,500 crore entity by 2026 and breaking into the top 10 companies in the country offering third-party logistics services. It remains confident of getting there banking on a surge in profitability by 400 basis points thanks to its non-linear business model and the technology integration.
The company had posted revenue of ₹140 crore last year in the middle of the pandemic. In fact, it posted a year-on-year growth of over 25 percent despite the Covid-19-induced lockdown, which was more than double the rate of the industry.
Notwithstanding the challenging times, the company also invested close to ₹20 crores in less than six months during the ongoing fiscal for making three major acquisitions and strategic investment in another company. The acquisition includes Mumbai-based Quifers, a logistics tech startup, a Delhi-based cold chain company Udgam Logistics, and a Bengaluru-based specialised transportation company. In addition, it has invested in drone delivery company TechEagle.
A.M. Sikander, CEO and founder of Sitics, said, “We are perhaps one of the few companies in India to do this during these pandemic times. We are planning to acquire another couple of companies; one each in e-commerce and the critical logistics vertical. These acquisitions are in keeping with our goal of transitioning from a solution-based company to a technology-based company. We aspire to be a tech-enabled supply chain company.”
In keeping with that target, Sitics plans to digitize its entire operations and also expand its presence to Europe, the US, Canada, Indonesia, and Vietnam. The idea is to enhance the share of international revenue to 20 percent of the company's total revenue from the current 5 percent by FY 2026.
The company eyes to have a blend of 50 percent of its revenue from traditional logistics and the other half from new-age digitally-driven logistics.
During the height of the pandemic during 2020-21, the company expanded to the North, West, and East of the country thus transitioning itself from a South India-based player to pan-India player, expanding its presence from five states to more than 20 States. The company also hired the head of APAC to drive the business and expand in Singapore, Thailand, and Australia.
The company also established a cross border e-commerce solution in India and Malaysia and a global freight forwarding division.