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The owner of India’s largest fleet of commercial vehicles, VRL Logistics Ltd. will scrap the old trucks and will not buy new vehicles in order to cover the expenses and make profits in the second quarter of 2020.
In order to recover from the pandemic, the firm has identified around 700 trucks which can possibly be scrapped out of the total 5000 commercial vehicles owned by VRL Logistics, added the report. Chief Financial Officer Sunil Nalavadi said at a press conference that the firm hopes to report profits in this year by cutting costs and freezing new investments.
Due to the outburst of the Coronavirus, the Indian economy came to a standstill back in March 2020. Ever since then most of the Medium and Small Manufacturers have been struggling to recover from the pandemic. Likewise, the transporters also reported a huge dip in the demand owing to the fact that manufacturers started cutting routes where the demand is less.
While business is improving from sectors like pharmaceuticals and farming, demand from textiles and automobiles is weak, said Nalavadi.
Now the company’s proposal of scrapping old trucks depends on the government’s policy of scrapping vehicles which is yet not finalized. “If vehicles older than 15 years are to be scrapped, we have around 700 trucks. If it is 20 years, we have about 200”, added Nalavadi.
The firm is headquartered in Karnataka and began operations with a single truck in 1976. Please do not forget to visit our ‘Help Portal‘ to get the full report on the recovery of truck movement in India.