Due to rising input costs, Logistics firm Gati Ltd announced that it will raise the rates of its services by up to 10 percent by January 2009.

Fearing the slowdown in the market, the company has also decided to go slow on its expansion plans of Rs 1.5 billion in the year.

While speaking on the sidelines of India Economic Summit, Gati Ltd Managing Director and CEO Mahendra Agarwal said, “There has been a constant increase of rentals, fuel prices and operating costs. We may not immediately raise, but there is a need for prices to go up.”

“Currently, we have about two million sqft of warehousing space and we had planned to increase it to 2.5 million sqft by June next year," said Agarwal.

He also said that the planned expansion of the company would now be delayed by three-four months.

The company is expecting a growth rate of 20 per cent in the current quarter. "In the January to March quarter there may not be much dip as lots of government dispatches will happen. But in April to June quarter it may be slow," Agarwal said.

The company has its network in all the majors cities across India.