VRL Logistics, which provides trucks to be used for transportation of cargo, has announced that the company will purchase 1,600 trucks, which will have a capacity of 25,000 million tonnes, for Rs 560 crore.

This investment will be made over a span of 12 to 18 months. Out of the 1,600 trucks, 1,300 will be of the Tata brand fleet while 300 will be from Ashok Leyland. The company will be making the investment through a combination of internal accruals and debt.

As per the scrappage policy, trucks which are more than 15 years old would be disallowed in a business.

According to the company, about 1,200 trucks of VRL will get withdrawn, meaning the firm would lose nearly 12,000 million tonnes of capacity if additional new trucks are not introduced in the business.

The company's latest additions would mean a net incremental capacity of 13,000 million tonnes, about 20 percent of their existing fleet, which will help the company cater to the expected growth in volumes that they are anticipating over the medium term.

Watch the accompanying video of CNBC-TV18’s Reema Tendulkar for more details.

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First Published:Apr 6, 2022 3:53 PM IST