Pantos Logistics: An optimal point for business
Total logistics solution provider, Pantos Logistics, has carved a niche of its own for the past 16 years and is expanding in a big way. The company has plans to invest $100 million this year and next year. Lee Joon, Regional CEO/Sr. Vice President, Pantos
Please elaborate your business model.
Pantos came into India in 2002. We started our business with freight forwarding. We are a LG affiliated company. Later, we shifted our whole distribution business to Pantos and focused on logistics business. The functioning included picking goods from LG factory and delivering it to the end customer, that is, the dealer. The primary transportation is being managed from our factory to different warehouses in India, and then to the customers. Gaining an edged on transportation, Pantos initiated end-to-end solutions. We recently received a custom clearance license.
What are your expansion plans?
We are planning to construct warehouses in Gurgaon, Bengaluru, Chennai, Pune, Mumbai and Hyderabad. Our plan is to construct at least 200, 000 sqft warehouse at one location. This is the first phase. The second phase will focus on major cities like Ahmedabad and Kolkata, where the business scope is huge. These areas will be a hub for distribution after GST implementation. Presently, we are in FMCG, consumer durables, chemical and automobile industry. Due to an increase in exports, we have started operations in garments and are also planning to come up in the pharma segment, due to a growing demand. India is one of the biggest hubs for generic export. We are taking it as a vertical rather than a customercentric market. We are eyeing neighbouring countries like, Sri Lanka, Bangladesh for import and export. We will focus on transportation and custom clearance in India and are registering ourselves at all sea ports and dry ports of India to offer best service.
Do you have your own fleet of vehicles?
At present, we have around 10 vehicles of our own, but we have leased some for transportation. Around 150 transporters are working with us, dedicatedly. Our plan is to own more than 1000 vehicles in next one year.
Lee Joon Regional CEO/Sr. Vice President Pantos Logistics Our plan is to construct at least 200, 000 sqft warehouse at one location
We are aiming to capture Indian market in a big way. With our own transportation network, we can leverage more in terms of pricing, visibility, fast deliveries.
What is your USP?
We are a single point contact providing total logistics to customers. We have presence across the world. This gives us better control, better communication and swift services to stay ahead of competitors. With the aim to focus on hightechnology information system, we have also developed satellite connected IT system to monitor the vessel and shipping lines, offering customised solutions to our customers.
How have you taken the GST implementation?
We have started direct deliveries after GST. Here at LG Group, almost 25 per cent of the material is delivered directly from the factory to dealer’s warehouse. GST will boost the business, but it will take some time because the country’s infrastructure is still at lax. The customer, let’s say a dealer or distributor, is also not ready with the space and infrastructure to get that material. Eighty per cent of the industry is unorganised and the warehouse infrastructure is also not readily available for consolidation. It may take around two years to establish a suited warehousing and transport network. The boom is in the sense of consolidation, but size will remain the same. With GST, long distance transportation will increase, enabling hubs to come up in major highways. The cost and inventory management will be better and due to consolidation inventory, will come down rather.
What is your take on ever-growing e-commerce logistics? How is Pantos taking benefit out of it?
There is a definite growth in this sector. Before GST, e-commerce companies used to have warehouses everywhere. Now, majority of the products are being sent via courier service and there is less requirement of a small warehouse at every location. We have started supplying to e-commerce companies and now we are in discussion with them for warehouse management. At present, we have 2.5 million sqft area in India through 38 warehouses. We are in discussion with few companies on usage of pallets in our warehouse. There are two stages to execute this; firstly, on managing warehouse space and secondly, to chart out a way to use our warehouse as theirs for direct supply to customers. This reduces transportation and handling cost.
What is your transportation model?
In India, we offer transportation service by road, rail, air as well as sea. We use coastal shipping mode of transportation, majorly for the South, that is, from Noida to Kerala; we are managing by road and sea route in Gujarat. From Pune to East, we use road and rail route to Kolkata and Guwahati. The rest of the country is managed by road. We are also handling goods by air in a few parts, depending upon the requirement of the customer and inventory management.