New hori­zon:

Up­turn through in­no­va­tions

Cargo Talk - - Contents - RATAN KR PAUL

De­spite a slug­gish 2012-13 in gen­eral, many of cargo and lo­gis­tics com­pa­nies in In­dia wit­nessed rea­son­able growth. They are up­beat about the growth prospect in the cur­rent fi­nan­cial year, though the global eco­nomic sce­nario looks gloomy. In this An­nual Is­sue that sums up the pre­vi­ous fi­nan­cial year and un­veils mar­ket trends for the cur­rent year, Car­gotalk speaks to some in­dus­try prac­ti­tion­ers who be­lieve in in­no­va­tion and achieve­ment dur­ing tough times.

De­spite a slug­gish 2012-13 in gen­eral, many of cargo and lo­gis­tics com­pa­nies in In­dia wit­nessed rea­son­able growth. They are up­beat about

the growth prospect in the cur­rent fi­nan­cial year, though the global eco­nomic sce­nario look­ing gloomy. In this An­nual Is­sue that sums up

the pre­vi­ous fi­nan­cial year and un­veils mar­ket trends for the cur­rent year, Car­gotalk spoke to some in­dus­try prac­ti­tion­ers who be­lieve in

in­no­va­tion and achieve­ment dur­ing tough times.

dur­ing 2012, the global eco­nomic growth weak­ened fur­ther. A grow­ing num­ber of de­vel­oped economies have fallen into re­ces­sion. The global eco­nomic growth has slowed from 3.9 per cent in 2011 to 3.2 per­cent in 2012. IMF has put the pro­jec­tions of growth of world out­put at 3.5 per cent in 2013. The ad­vanced economies are ex­pected to grow at 1.4 per cent, while the emerg­ing and de­vel­op­ing economies are to grow at the rate of 5.5 per cent in 2013. The vol­ume of trade growth in 2013 is fore­casted to be at 4.5 per cent, still be­low the long term an­nual aver­age of 5.4 per cent growth for the last 20 years.

Ac­cord­ing to the Min­istry of Com­merce, Govern­ment of In­dia’s anal­y­sis, In­dia is well-in­te­grated with the global econ­omy. The coun­try’s ex­ports and im­ports amount to ap­prox­i­mately 43 per cent of Gross Do­mes­tic Prod­uct (GDP). The slow growth in dif­fer­ent coun­tries and re­duced de­mand are also likely to de­ter­mine the mar­kets for its ex­ports.

All in all, it was

a sat­is­fy­ing year in view of var­i­ous ad­ver­si­ties faced, both on ex­ter­nal and do­mes­tic fronts”

Anil Gupta CMD, Con­cor

How­ever, de­spite the global slow­down in both GDP growth and trade vol­umes, In­dia recorded one of the high­est ex­port growths among the ma­jor trad­ing na­tions of the world in 2011. Last year, though, had wit­nessed a con­sid­er­able slow­down. As per WTO’s In­ter­na­tional Trade Statis­tics (2012) in mer­chan­dise trade, WTO ranked In­dia as the 19th largest mer­chan­dise ex­porter in the world, with a share of 1.7 per cent of the global trade and the 12th largest im­porter with a share of 2.5 per cent of global im­ports in 2011.

Dur­ing April- March 2012-13, the cu­mu­la­tive value of ex­ports was US$ 301 bil­lion, as com­pared to US$ 305 bil­lion for April-March, 2011-12.

fy 2012-13 & the trend set­ters

In terms of vol­umes, Con­tainer Cor­po­ra­tion of In­dia (Con­cor) faced a mod­er­ate de­cline and ended up han­dling a through­put of 2.59 mil­lion TEUs as against 2.60 mil­lion TEUs han­dled dur­ing FY 2011-12. How­ever, in terms of ton­nages car­ried, there was an in­crease of over 8.2 per cent, up from 28.29 MT (mil­lion tonnes) car­ried in 2011-12 to 30.62 MT car­ried in 2012-13. This was against 6.45 per cent in­crease recorded in over­all con­tainer­ised cargo car­ried by rail by all CTOs com­bined, which went up from 38.58 MT in 2011-12 to 41.07 MT in 201213. “Keep­ing in tune with in­creased ton­nage car­ried, our op­er­at­ing turnover was up by 8.5 per cent, and PAT up by 7.08 per cent. All in all, it was a sat­is­fy­ing year in view of var­i­ous ad­ver­si­ties faced, both on ex­ter­nal and do­mes­tic fronts,” said Anil Gupta, CMD, Con­cor.

“De­spite the gloomy econ­omy of EU & USA, SDV SA man­aged to sus­tain a good prof­itabil­ity growth in In­dian and as well as in South Asian mar­kets like Pak­istan

SDV SA man­aged to sus­tain D JRRG SUR­fiWDELOLWy growth in In­dian and as well as in South Asian

mar­kets”

Thomas Du­plan CEO, SDV In­ter­na­tional Lo­gis­tics

and Bangladesh. Be­ing a strong Euro­pean-ori­ented IFF, it was quite hard for us to sus­tain the pro­gres­sion as Euro­pean Union is the ma­jor trad­ing part­ner of In­dia, and in ad­di­tion USA also has a ma­jor im­pact on this mar­ket. As a re­sult, to cover up we have di­ver­si­fied our busi­ness to other mar­kets like China or Africa which are still a grow­ing econ­omy and have lots of po­ten­tial,” in­formed Thomas Du­plan, CEO, SDV In­ter­na­tional Lo­gis­tics.

As a lead­ing freight for­warder in Africa, SDV will con­tinue its prime fo­cus on the Africa lane, hav­ing even set up a sep­a­rate team. Re­cently, SDV has also im­ple­mented a new ver­ti­cal for fash­ion and lux­ury goods, which is a core busi­ness for the com­pany (thanks to its French roots). SDV is al­ready largely in­volved in ware­hous­ing and dis­tri­bu­tion ac­tiv­i­ties for top lux­ury brands.

Ac­cord­ing to Milind Sha­hane, CEO, DIESL; the FY 12-13 wit­nessed in­fla­tion, in­crease in fuel and raw ma­te­rial costs, which im­pacted lo­gis­tics costs, with freight and trans­porta­tion rates see­ing many fluc­tu­a­tions. More­over, there has been some level of busi­ness un­cer­tainty which af­fected profit mar­gins with re­spect to few lines of busi­ness like ware­hous­ing. “But we adopted sev­eral strate­gies to counter this and made some tough de­ci­sions. Ven­dor con­sol­i­da­tion, man­power ra­tio­nal­i­sa­tion, ware­house and of­fice con­sol­i­da­tion and bet­ter ne­go­ti­ated rentals on larger spa­ces helped us in man­ag­ing ex­penses ef­fec­tively. Plus our as­set-light model en­sured that we do not face heavy set­backs; and our cap­i­tal was not choked. Th­ese strate­gies helped us to keep our head above wa­ter and move steadily, even in the un­cer­tain mar­ket sce­nario,” said Sha­hane.

In FY 2012-13, DIESL ex­panded its ser­vices to­wards some pre­vi­ously un­tapped mar­kets like so­lar power projects, bulk, and en­gi­neer­ing; as th­ese ver­ti­cals have a huge de­mand for all kinds of lo­gis­tics ser­vices, like air and ocean freight con­sol­i­da­tion, cus­toms clear­ance, and doc­u­men­ta­tion, ware­hous­ing, trans­porta­tion and val­ueadded ser­vices. “DIESL pro­vides all th­ese ser­vices un­der one roof. We have also im­ple­mented CRM (Cus­tomer Re­la­tion­ship Man­age­ment) at DIESL which al­lows us to man­age cus­tomers ef­fi­ciently. It pro­vides a clear pic­ture of the mar­ket pulse as well as our busi­ness. Cus­tomer ac­counts are seam­less man­aged across ser­vices and lo­ca­tions, plus billing/out­stand­ing data can

be tracked bet­ter. Our sin­gle fo­cus in the last one year has been to lever­age on DIESL’s IT in­vest­ments,” Sha­hane pointed out.

For LCL Lo­gis­tix (In­dia), FY2012-13 was a mixed bag in terms of earn­ings and growth. “Al­though our com­pany man­aged to fin­ish its an­nual cap­i­tal ex­pen­di­ture cy­cle in a timely man­ner, the streams of rev­enue is ex­pected to hit the books in FY2013-14. Dur­ing the year, the com­pany in­ten­sively strate­gised its ma­jor stream of lo­gis­tic value chain, in­te­grat­ing them with over­seas op­er­a­tions/pres­ence in or­der to gen­er­ate a cu­mu­la­tive syn­ergy among them,” said

UnniKrishnan Nair, Chair­man, LCL Lo­gis­tix. The com­pany’s strat­egy is based on its cor­po­rate vi­sion- aim­ing to­wards ‘Glob­ally Yours’, pro­vid­ing end-to-end lo­gis­tic and sup­ply-chain so­lu­tion. Dur­ing the year, LCL Lo­gis­tix ven­tured into a new busi­ness do­main which would be a ma­jor ser­vice of­fer­ing in its in­te­grated port­fo­lio.

On the other hand, 2012-13 proved to be an un­event­ful year for Delex. “Our rev­enue grew higher, but rapid ex­pan­sion of net­work has con­sumed a good por­tion of re­sources. Fre­quent in­creases in diesel and ATF rates have also con­trib­uted their bit,” said

Srinivas Sat­ti­raju, CEO- Delex.

Asked about their achieve­ments, he main­tained that the tie-up with SpiceJet as Cargo GSA & GHA for In­dia, win­ning a ma­jor share of busi­ness for sur­face cargo move­ment from the world’s largest com­puter com­pany and cho­sen by one of the world’s largest par­cel ser­vices’ com­pany as their de­liv­ery part­ner in In­dia were some of the key achieve­ments for the year 2012-13.

“We did achieve pos­i­tive re­sults visà-vis the pre­vi­ous FY. We roped in a good num­ber of cus­tomers and a good CRM ra­tio was achieved, whereby the num­ber of im­ports ship­ments of our over­seas in­creased as well. As on the courier con­sol­i­da­tion front, we did add on air­line op­tions, which in­creased sec­tors and cost op­tions to our cus­tomers. FY 2012-13 could be termed as very sat­is­fac­tory year for us. But there is much more scope to per­form in the com­ing year,” said NE Daniel, Di­rec­tor, JTB Jupiter Ex­press Ser­vices.

Anil Khanna, MD, Blue Dart Ex­press ob­served that given the slow­down, any im­pact to the top-line busi­ness af­fects the bot­tom line as the in­dus­try has a high fixed­cost model. “Our in­dus­try, es­pe­cially the air

Our as­set-light model en­sured that we do not face heavy set­backs; and our cap­i­tal was not

choked” Milind Sha­hane

CEO, DIESL

ex­press seg­ment, is the bell­wether for the eco­nomic ac­tiv­ity in the coun­try. If the GDP is about 8 per cent, ex­press in­dus­try will grow any­where be­tween 16-18 per cent. But, when it falls be­low 7 per cent, our growth will also slow down due the rel­a­tive fac­tor,” he pointed out. So, with the GDP reg­is­ter­ing an aver­age growth of 5.3 per cent last year, it im­pacted the growth of ex­press in­dus­try. “But, Blue Dart grew by 16 per cent last year. One of the rea­sons for this is that we in­tro­duced a lot of in­no­va­tive prod­ucts and had a sec­tor-spe­cific and ge­o­graph­i­cal fo­cus,” he un­veiled.

He also main­tained that de­spite chal­leng­ing times, the com­pany con­tin­ued in­vest­ing in ser­vice and prod­uct en­hance­ments to in­crease its reach. “We have been at the helm of many in­no­va­tions that have ben­e­fit­ted our end-cus­tomers and hence will con­tinue like­wise in the fu­ture,” he as­serted. Some of Blue Dart’s ini­tia­tives in­clude – state-of-the-art tech­nol­ogy, On­the-Move (OTM) and Weight Di­men­sion La­belling (WDL) ma­chines, a ro­bust in­fra­struc­ture (with an en­vi­able fleet of air­craft and ve­hi­cles), fo­cus on Tier-II & III towns, SMEs (Small & Medium En­ter­prises), prod­uct in­no­va­tion, reach ex­pan­sion, tran­sit time im­prove­ments with Smart Truck (an ‘in­tel­li­gent’ pick and de­liv­ery ve­hi­cle). “Cur­rently, a key pro­ject un­der­way is Ra­dio-fre­quency Iden­ti­fi­ca­tion (RFID) which will help en­sure speed, safety and ac­cu­racy,” Khanna added.

Dil­jeet Singh - Chief Sales & Mar­ket­ing Of­fi­cer, GATI-KWE shared that the year 2012-13 was as per in­dus­try trends, but it was be­low the com­pany’s ex­pec­ta­tion. “Slow growth rate of econ­omy has im­pacted us and growth was around 12 per cent,” he said. He also main­tained that the Gati-Kin­tetsu Rail so­lu­tion for bulk trans­porta­tion grew at dou­ble the mar­ket

at 25 per cent and B2C home de­liv­ery grew by 40 per cent. “We are fo­cus­ing on sup­ply chain so­lu­tions as a new rev­enue stream, pro­vid­ing ground-break­ing so­lu­tions in­clud­ing de­mand plan­ning, in­ven­tory own­er­ship and man­age­ment and ware­house op­er­a­tions,” he added. On the op­er­a­tions side, Gati-KWE wit­nessed es­ca­la­tion of costs due to in­fla­tion­ary pres­sures, fuel price in­creases and the ever in­creas­ing cost of labour and skilled re­sources.

“There were big chal­lenges we have faced in FY 12, as this year was the ‘lo­gis­tic year of the decade’ and ev­ery small and medium courier com­pa­nies was fo­cussing on cargo move­ment. As we have com­plete fo­cus on cargo move­ment, we got lots of big deals and re­sponses. For us, this year was the golden year, with re­spect to strength­en­ing the com­pany in cargo busi­ness,” added Lalit

Bharad­waj, Man­ager – Sales & Mar­ket­ing, GNI Ex­press.

“I would say FY 12-13 was a game changer for our com­pany. We en­vis­aged a par­a­digm shift in the way com­pa­nies per­ceive sup­ply-chain as an in­te­gral part of their op­er­a­tions. With cut-throat com­pe­ti­tion in ev­ery mar­ket seg­ment, com­pa­nies can­not af­ford to have any bot­tle­necks in their sup­ply chain. Com­pa­nies have in­creas­ingly be­gun to view their lo­gis­tics cen­tres as profit-driv­ers to gen­er­ate more rev­enues as op­posed to a cost cen­tre. To help them achieve their goal, we have set out to cre­ate a world-class ware­house that will set a new bench­mark in the ware­hous­ing in­dus­try,” stressed Ab­hi­jeet Agar­wal, Di­rec­tor, Aarna Projects. Apart from state-of-the art ware­hous­ing de­vices, the com­pany also in­tro­duced a num­ber of cold stor­age units and am­bi­ent ware­houses in West Ben­gal. “This mod­ern ware­house, how­ever, is our maiden pro­ject in Kolkata – a step­ping stone to big­ger things to come in the near fu­ture” he in­formed.

“FY 12-13 has been very good for our or­gan­i­sa­tion as we have been able to grow our busi­ness in 3PL and we have signed a long-term con­tract with a pre­mium re­tail brand. We will be han­dling their dis­tri­bu­tion cen­tre in Mum­bai to cater their stores across West In­dia. We see this prod­uct giv­ing us more busi­ness share in FY 13-14,” said

Ajay Bamel, CEO, Transocean Ex­press

Lo­gis­tics.

GS Chawla, MD, Ocean King Ship­ping Ser­vices, how­ever, was ap­peared to be dis­ap­pointed about the per­for­mance. “It was a tough year for our com­pany. As the mar­ket strug­gled on com­pet­i­tive edges to pro­vide the best pos­si­ble ser­vices; at the same time, it cut all pos­si­ble mar­gins and barely walked the rope in terms of bal­anc­ing prof­its and loss. So the risk at­tached was high, though the ben­e­fit was low,’ he pointed out.

On the courier con­sol­i­da­tion front, we did add on air­line op­tions, which in­creased sec­tors and cost op­tions to our cus­tomers. FY 2012-13 could be termed as very sat­is­fac­tory year for us”

NE Daniel Di­rec­tor, JTB Jupiter Ex­press Ser­vices

In his opin­ion, shift­ing of the com­pany’s op­er­a­tional con­sol­i­da­tion hub from ICD PPG to ICD TKD was a sig­nif­i­cant move. “We be­lieve we have brought cer­tain real level im­prove­ments in the over­all han­dling of LCL trade from New Delhi. ICD TKD, be­ing a rail-head on its own, plus a fa­cil­ity of ma­jor con­tainer op­er­a­tor, and cost re­duc­tion in ad­di­tion to bet­ter ser­vice; is the USP here,” he said.

Ac­cord­ing to MM As­lam, Man­ag­ing Di­rec­tor, Airogo Lo­gis­tics; in spite of global econ­omy slow­down the com­pany’s per­for­mance was quite sat­is­fac­tory and it was able do quite bet­ter in its im­port sec­tors.

“FY 12-13 was quite dif­fi­cult as the en­tire in­dus­try was strug­gling. How­ever, we have been able to sus­tain our sales and prof­its,” in­formed Su­raj Agrawal, Di­rec­tor, Monopoly Car­ri­ers and Cargo.

Venkata Reddy, Chief Ex­ec­u­tive Of­fi­cer, Men­zies Avi­a­tion Bobba (Ben­galuru) shared that the com­pany wit­nessed an im­prove­ment dur­ing fourth quar­ter of 2012-13, set­ting a pos­i­tive tone for the com­ing year. “We have im­ple­mented Phase-I of Cold Zone pro­ject by in­stalling tem­per­a­ture-con­trolled cham­bers ex­clu­sive for pharma prod­ucts. We are im­ple­ment­ing Phase-II of the pro­ject in 2013-14. We have also seen a smooth tran­si­tion to 24x7 cus­toms clear­ance and pro­cess­ing,” he added.

“It was a ro­bust year for us and we have opened our branch of­fice in South In­dia (Tu­ti­corin) which has pro­duced bet­ter re­sults than we ex­pected. More­over, gen­eral ex­ports have picked up and we, though spe­cial­is­ing in cus­tom clear­ance and ex­port by air and sea, have in­cluded im­ports in

our port­fo­lio. We were re­ceiv­ing con­stant queries wherein our cus­tomers wanted us to han­dle their im­port ship­ments as well. Be­ing in IATA, CHA and NVOCC, we yearned to be one-stop so­lu­tion for all kind of lo­gis­tic needs,” main­tained Vi­neet

Chadha, Di­rec­tor, Vic­sun Car­ri­ers.

For Yash­pal Sharma, Di­rec­tor, Sky­ways Group; the year 2012-13 has been a con­sol­i­da­tion year. Sky­ways opened two new of­fices in In­dia and one in Ger­many. “The year saw us ex­pand our prod­uct base and we also set the stage for launch­ing our 3PL ver­ti­cal,” he high­lighted. In his opin­ion, the year that went by re­quired ex­tra ef­forts to sus­tain and grow, as there was con­sid­er­able slow­down in global busi­ness and the sen­ti­ment was highly neg­a­tive. “I am glad that Sky­ways con­tin­ued to grow in this chal­leng­ing year too,” he added.

Ashish Asaf, MD, SA Con­sul­tants & For­warders ob­served that the year started with chal­lenges but as it pro­gressed; bet­ter re­sults came at the end. “In FY-2012, our com­pany re­ported a top-line growth of about 20 per cent over the pre­vi­ous year. We have strength­ened our Mum­bai of­fice and now con­cen­trat­ing on south­ern In­dia as well.”

“The mar­ket was good for us be­cause of our strong re­la­tion­ship with our cus­tomers and the qual­ity ser­vices of­fered to them. De­spite chal­lenges, we grew by 14 per cent in the pre­vi­ous FY, as com­pared to FY 2011-12,” in­formed KS Do­rai, MD, Renown For­warders.

In Gur­jeet Bedi’s opin­ion, there is a mar­ket for in­no­va­tive play­ers even dur­ing tough times. “You have to ex­pand your hori­zon to find new mar­kets with new prod­ucts and ser­vices,” the Di­rec­tor of Scan For­warders em­pha­sised. The com­pany has wit­nessed 20 per cent growth in FY 2012-13.

“The year was very good for our com­pany. Though our to­tal vol­ume was re­duced by 20 per­cent, we have in­creased our rev­enue by more than 22 per cent. The achieve­ment was be­cause of our new cus­tomer base,” said Dileep T Abra­ham, Sr Vice Pres­i­dent, AV Thomas & Co.

Mon­ish Darda – Co-founder & CTO, Icer­tis, also in­formed that the FY 2012-13 has been an en­rich­ing and suc­cess­ful year of growth and cus­tomer ad­di­tion at Icer­tis. “We have ac­quired 10 new cus­tomers across our port­fo­lio of of­fer­ings and strength­ened our In­dia op­er­a­tions with more than 200 pro­fes­sion­als. The cus­tomer ad­di­tions are from var­i­ous in­dus­try ver­ti­cals, which are suc­cess­fully us­ing Icer­tis’ prod­ucts to solve their con­tract­ing, sup­ply chain ex­e­cu­tion, and ERP chal­lenges,” he said.

FY 12-13 has been very good for our or­gan­i­sa­tion as we have been able to grow our busi­ness in 3PL and we have signed a long-term con­tract with a pre­mium

re­tail brand”

Ajay Bamel CEO, Transocean Ex­press Lo­gis­tics

The tech­nol­ogy ser­vice provider launched two prod­ucts, Icer­tis Pub­lic Trans­port Man­age­ment and Icer­tis Trans­port Man­age­ment this year.

An­other lead­ing lo­gis­tics tech­nol­ogy ser­vices provider, Hans In­fo­matic, con­veyed the same sen­ti­ment. Ac­cord­ing to Parvin­der Singh, MD, “FY 2012-13 was very event­ful for us. Dur­ing this pe­riod, Hans be­came an IATA Strate­gic Part­ner and a mem­ber of IATA’s Cargo XML Task Force (CXMLTF). The mis­sion of CXMLTF is to mi­grate cargo in­dus­try’s EDI mes­sag­ing plat­form from old flat file based to the widely used and ac­cept­able XML stan­dards.” Hans also launched a port­fo­lio of so­lu­tions for SCM, which in­cludes Ware­house Man­age­ment Sys­tem and Trans­port Man­age­ment Sys­tem.

Pro­jec­tions for fy 2013-14

In this fi­nan­cial year, Con­cor ex­pects an over­all growth of nine to 10 per cent in both vol­umes and ton­nages, pri­mar­ily on the hope that In­dian ex­ports will grow as the new mar­kets de­velop. “What we are afraid is a re­peat year of im­port-ex­port im­bal­ances which will dash our hopes. Frankly, the po­si­tion is not likely to im­prove dra­mat­i­cally this year, un­less there is an eco­nomic re­cov­ery. The in­dus­try will def­i­nitely re­cover in sync with the econ­omy,” Gupta voiced.

In Du­plan’s opin­ion, freight for­ward­ing in­dus­try has his­tor­i­cally been the cor­ner­stone of global trade. With chang­ing trade dy­nam­ics at both global and re­gional lev­els, the ship­ping sec­tor too has been wit­ness­ing sig­nif­i­cant trans­for­ma­tion. “Driven by in­creas­ing con­sump­tion, man­u­fac­tur­ing, and rel­a­tively bet­ter macroe­co­nomic sce­nario, the in­tra-Asia ship­ping mar­ket ap­pears more promis­ing

Though our to­tal vol­ume was re­duced by 20 per­cent, we have in­creased our rev­enue by more than 22 per cent”

Dileep T Abra­ham Sr Vice Pres­i­dent, AV Thomas & Co.

in terms of growth op­por­tu­ni­ties than its global coun­ter­parts. The share of in­tra-Asia re­gion has in­creased up to 21 per cent within a short pe­riod. Africa has also seen a sim­i­lar trend. In my opin­ion, th­ese two sec­tors will be the cen­tre at­trac­tion for all the freight for­warders and car­ri­ers in South Asia,” he elab­o­rated.

“With the coun­try emerg­ing as an im­por­tant sourc­ing hub for some in­dus­tries, do­mes­tic con­sump­tion will gen­er­ate good GDP growth, and also growth in sec­tors like pharma, au­to­mo­tive, con­sumer elec­tron­ics, bank­ing, fi­nan­cial ser­vices and e-com­merce,” ob­served Khanna.

Ac­cord­ing to Nair, the present trend in the mar­ket is the emer­gence of slow and steady in­dus­try con­sol­i­da­tion by way of small/big ticket merg­ers & ac­qui­si­tions and takeovers. “The lo­gis­tics sec­tor in In­dia is un­der­go­ing a rad­i­cal change where the play­ers pur­su­ing new busi­ness av­enues (cap­tur­ing the su­per crit­i­cal lo­gis­tic value chains) thereby con­sol­i­dat­ing them­selves – are step­ping to­wards in­te­gra­tion and di­ver­si­fi­ca­tion. The roadmap for LCL Lo­gis­tix for FY2013-14 is in line with the growth rates of the over­all lo­gis­tics in­dus­try and the broad eco­nomic fun­da­men­tals of the coun­try,” he stated.

Tak­ing cue from Nair, Sat­ti­raju ob­served that the new fi­nan­cial year has be­gun well. “We are will be ex­pand­ing our busi­ness pres­ence in both air cargo and sur­face cargo. A few new, strate­gic lo­ca­tions will be added to our net­work,” he said. The com­pany is ex­plor­ing cold chain lo­gis­tics space. “We al­ready have some pres­ence in CCL space and our strat­egy for 13-14 should give us firm ground­ing for ex­pan­sion of our ca­pa­bil­i­ties in cold chain area,” he main­tained.

“My ex­pec­ta­tion from the FY 13-14 is on the pos­i­tive side, be­cause the global econ­omy as well as the In­dian econ­omy is im­prov­ing. While last year, the GDP growth went down to as much as 5.2 per cent, the es­ti­mate this year is around 6.2 per cent. That one per cent growth rate trans­lates into huge growth for the lo­gis­tics in­dus­try. Se­condly, as the busi­ness sen­ti­ments im­prove, there will more ex­pan­sion in terms of projects which com­pa­nies will take up, some which had been put on hold the whole of last year,” Sa­hane con­cluded with a op­ti­mistic note.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.