Air India SATS Airport Services Pvt. Ltd. (AISATS) announced a capital expenditure plan of ₹600 crore for fiscal year 2027, aiming to more than double its revenue over the next five years. The company intends to shift its focus from traditional ground handling to cargo, warehousing, and logistics services, targeting revenues between ₹3,000 crore and ₹3,500 crore during this period, according to livemint.com.
The investment plan was detailed by Vikas Agarwal, AISATS's chief financial officer, who highlighted the company’s strategy to diversify its business model. The ₹600 crore capex will primarily fund expansion in cargo handling and related logistics infrastructure. This move is designed to reduce AISATS's reliance on ground handling services, which have traditionally formed the core of its operations, as reported by livemint.com.
The shift towards cargo-led growth aligns with broader trends in the aviation and logistics sectors, where increased e-commerce and supply chain demands are driving higher volumes of air cargo. AISATS’s planned revenue target of up to ₹3,500 crore over five years positions it to compete more aggressively in the cargo and warehousing market. This strategy reflects similar moves by other airport service providers seeking to capitalize on the growing logistics segment, according to livemint.com.
AISATS’s ₹600 crore capex plan for FY27 marks a significant step in its transformation strategy, with the company aiming to leverage cargo and logistics to fuel growth. The five-year revenue target of ₹3,000-3,500 crore sets a clear financial benchmark for the company’s expansion efforts, as outlined by Vikas Agarwal in the livemint.com report.