Looking ahead@FY 2014-15 A challenge to adapt
How was FY 2013-14 for your company? Any major developments that were unveiled?
The Financial Year 2013-14 at our company was a challenging year. The market situation forced us to review our approach to business differently and take steps to defend shrinking margins by cost reductions.
As major development for the year, we have increased our footprints in terms of number of warehouses. We have also increased our focus on door-todoor solutions for specific verticals like automotive and consumer products.
We have further augmented our IT capabilities to keep up with the changing times.
What are the present market trends that you see and furthermore, what are your expectations from the upcoming financial year?
The present market trends indicate slow, but steady recovery in business volumes. The growth in manufacturing sector supported by better Balance of Payment position will drive the future trend.
The efforts from the Government to bridge the gap between Central and State priorities will result into smart increase in need of domestic distribution.
What are your expectations from the new government at the Centre for the development of the logistics industry in India?
The monsoon woes, the situation at Iraq and inflation will matter for the economy, but two of these probable issues can be controlled through import of food items and running infrastructure projects in the rural area.
The Government needs to speed up introduction of the GST, which is long pending. It should look into giving tax relief for setting up of warehouses in Tier-II and Tier- III cities. Additionally, we expect Government to look into ocean-port infrastructure where we are significantly less efficient than many other ports in the world.
Mayur Gandhi, Chief Financial Officer, DB Schenker