KSRTC ventures into logistics business, starts with 20 trucks, targets ₹100 crore revenue per year

KSRTC purchased the trucks at a price of ₹17 lakh per vehicle. These fully-equipped trucks, each with a 6-ton capacity, are intended to cater to diverse clusters, such as fruits, vegetables, textiles, and pharmaceuticals.

Karnataka State Road Transport Corporation (KSRTC) is set to enter the logistics business by deploying 20 fully-equipped trucks, with the aim of enhancing non-ticket revenue. Based on its extensive connectivity and resources, including depots across Karnataka, the State-owned corporation will diversify into the logistics business, Transport Minister Ramalinga Reddy told The Hindu.

In 2021, the KSRTC launched ‘Namma Cargo’ services, enabling State road transport corporations, excluding the BMTC, to transport parcels in buses as a revenue-generating initiative. Expanding upon this established cargo service, the KSRTC will further get into the logistics sector by inducting trucks into its fleet.

“We used to outsource our parcel services to external agencies, generating approximately ₹4 crore in annual revenue. Then we introduced Namma Cargo, where we exclusively operate the service and offer a 20% commission to external agencies. We have achieved a monthly revenue of ₹1.10 crore. Now, as a pilot initiative, we are adding 20 trucks, with the anticipation of expanding the size of this fleet in the coming days. Our goal is to reach an annual income of ₹100 crore from the logistics business,” said, Mr. Reddy.

According to the Minister, the KSRTC purchased the trucks at a price of ₹17 lakh per vehicle. These fully-equipped trucks, each with a 6-ton capacity, are intended to cater to diverse clusters, such as fruits, vegetables, textiles, and pharmaceuticals.