It is reliably learnt that some world-renowned logistics companies have mooted the idea of setting up operations in India and are looking at Tamil Nadu. The park, which aims to offer world-class infrastructural facilities primarily to automobile component manufacturers and vendors and is also open to other non-polluting industries, seems to offer an attractive option. If MIPL does succeed in roping in a multinational logistics company to set up shop, it will be the first such operation of its kind in the country to offer local dealers a one-stop shop so to speak. Such a logistics base will cater not only to requirements of OEMs but also to dealers in the interior of the country who service a variety ofvehicles including trucks and two-wheelers.

For instance, a dealer in the city has to place order for spare parts with the original manufacturer like Ashok Leyland. Unless the order is for bulk supplies, the OEM takes its own time to supply the parts. In some cases the OEM does not even entertain an order if it is below a stipulated number. The dealer thus is compelled to stock in advance a number of items irrespective of demand. Stocking more items means blocking money which could be put to more productive use. However, the company that sets up its logistics base in MIPL would be the single-point stocking base from where dealers, countrywide, could source their requirement of spares. In fact, the logistics base would be linked by computer to leading manufacturers in all major metros and cities as also to almost all dealers in cities and towns.

With this network, the logistics company will update information of demand and supply of various spares and accordingly take orders from dealers. It would be in anideal position to place its order with the OEM on behalf of its customers. At times it could also be passed on orders from OEMs unable to supply small numbers to dealers in the rural areas. Thus the stock base of the logistics company would be getting orders, stocking supplies and shipping them to even remote corners of the country cutting down time lag. This would enable dealers cut inventory costs to bare minimum. In Europe, the concept of zero inventory is fast catching up and manufacturers rely a lot on logistics companies to deliver the goods speedily and in time, thereby avoiding locking up capital for stocking goods. MIPL, it is learnt, is keen on introducing this concept so that automobile components and spares can be made available not only to dealers located far away, but also to other workshops and establishments in need of other engineering items. The logistics operator would also stock spares and parts for white goods by importing many of the items.

MIPL has taken a decision to opt for mostly"green" industries like apparel and garments manufacturers, printed circuit boards assembly and bus-body building units, besides catering mostly to needs of automobile sector including passenger car producers like Mahindra-Ford and Hyundai as also for truck majors like Ashok Leyland. In the orange segment, MIPL will permit units which cause little or no pollution like electro-plating workshops. Other industrial segments like tanning, paper and pulp among others, which come under the red segment in terms of environment hazards, will not be allowed entry into the park. MIPL, which is a joint venture between Mahindra Realty & Infrastructure Developers Ltd, Tamil Nadu Industrial Development Corporation (Tidco) and Infrastructure Leasing & Financial Services Ltd (ILFS), is acquiring 1,300 acres of land over five years.