APML Leverages On Home Storage Solutions To Derisk Its Biz
After establishing its presence in the domestic relocation market, Agarwal Packers and Movers Ltd. (APML) is now offering home storage solutions for its customers at just 5% of the rates they usually quote for transporting household or industrial goods. Launched last year, these solutions are being offered to people who are either downsizing their homes due to trimmed budgets or migrating back to their hometowns during the pandemic. Each storage facility, which has a warehousing space of 20 lakh square feet, is being set up at Gurugram, Mumbai, Hyderabad, Bangalore, Chennai, Kolkata, Jaipur, Nagpur, Vizag etc.
While talking to BW Businessworld on Zoomchat, Ramesh Agarwal, Founder, Mentor, Chairman & Managing Worker of Agarwal Movers Group, reveals, “Crisis or any exigency teaches us a lesson. However, it depends on how we learn a lesson from that. We came across people who wanted to shift back to their hometowns as they lost their jobs and wanted to dispose of their household stuff. So our ground executives gave us this feedback and thereafter our thinktank team came up with the ‘Home Storage’ concept. Owing to our in-depth experience, we have been recognized as one of the eminent Home Storage service providers in India. We offer short and long-term storage options in our warehouses which can safely and securely accommodate a variety of moving and storage items.”
Founded in 1987 by ex-airman Mr. Ramesh Agarwal, APML ranks among India’s largest logistics and supply chain companies. The Agarwal Movers Group (AMG) is a Rs. 500-crore business conglomerate that has diversified interests in infrastructure development, air cargo terminal management, relocation transportation, logistics, 3PL, warehousing and related activities. The home-grown logistics and transportation major, which runs a fleet of over 1,000 self-owned vehicles and 100 branch offices that serve more than 1,300 locations across the country.
Ramesh Agarwal
When asked to shed some light on the business dynamics of home storage solutions, Agarwal maintained, “Before the pandemic, our customers were paying Rs. 90,000 (for moving and packing. Now they just pay 5% (of that amount) at Rs. 4,500 per month. We will pack and store them in the locker and keep them for one, two or three years. You will be surprised to know that we have garnered about 3,400 such bookings as on date and expecting around 10,000 such orders in a year’s time. We have hived this off as a separate vertical, which will generate a portfolio of Rs. 60 crore for us with an EBITDA of 80%.”
To ensure prompt supply of life-saving oxygen in Delhi, NCR and parts of Rajasthan, APML came up with Pran Vayu Vahaan- Oxygen cylinders on wheels, which were stationed in front of renowned hospitals like RML hospital, GTB hospital, etc. Each vehicle was equipped with 6 beds, lights and fans and oxygen concentrators. “Within 40 hrs, we could make 10 such vehicles, which translates to 60 beds. Nearly 3,400 people availed of this facility.” APML ran vaccination camps at various locations with more than 1,200 people getting vaccinated.
Despite being badly impacted due to covid-induced lockdown, APML is confident of earning Rs. 10,000 crore in the next 7-8 years by when it aims to have 60,000-70,000 trucking cubes. The company is also going beyond Indian shores and are now opening offices in Singapore, Dubai and London. “Our growth plans hinge on factors such as no third wave of Covid," avers Agarwal.
