Project report on exploring express cargo
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The project report explores the potential of the express cargo business in Gurgaon, acknowledging the support of executives and faculty involved in the study. It provides an extensive analysis of the logistics industry, highlighting major players like Safexpress, Gati, and Blue Dart, along with industry trends, growth factors, and technological impacts. The document emphasizes the importance of efficient supply chain management and the evolving landscape of logistics in India, projected to grow notably in the coming years.
![BLUE DART
South Asia's premier courier and integrated express package Distribution Company. We have the
most extensive domestic network covering over 33,742 locations, and service more than 220
countries and territories worldwide through our group company DHL, the premier global brand
name in express distribution services. Our vision is to establish continuing excellence in delivery
capabilities focused on the individual customer. In pursuit of sustainable leadership in quality
services, we have evolved an infrastructure unique in the country today:
The only one of its kind in the country today, that is focused on carriage of packages as its prime
business, rather than as a by-product of a passenger airline. A dedicated aviation system to
support Blue Dart's services is self-sustaining, with its own bonded warehouses, ground handling
and maintenance capability
Fitch Ratings India Pvt. Ltd. has assigned the highest "F1+ (ind)" [F one plus (Ind)] rating for
our short term debt programme of Rs. 30 crores. Further, ICRA Ltd. has also assigned the
highest "A1+" (pronounced A one plus) Rating for our Commercial Paper Programme of Rs. 25
crores.
It has committed, diverse and over 8,318 strong are our most valued asset. All the achievements
have been possible because they have a team who believes in themselves and their company, a
team with a winning attitude.
Social Responsibility is a core element in our corporate strategy. We as a socially responsible
corporate have undertaken numerous steps to give back to communities, in whatever way they
can.](https://image.slidesharecdn.com/projectreportonexploringexpresscargo-131126131637-phpapp02/85/Project-report-on-exploring-express-cargo-15-320.jpg)
![2. Yearly Data Analysis of Profit before interest tax and exceptional items
Blue Dart (in
crores)
Gati (In crores)
Safexpress(In
crores)
2010-11
156
105
71
2011-12
171
111
78
2012-13
227
145
145
Yearly analysis ofProfit before interest tax and
exceptional items
Blue Dart
Gati
Safexpress
160
107
115
51
52
16
11
2010-11
2011-12
52
42
2012-13
Through Safexpress was on the top of the list in term of revenue generation but due to more
business from low margin FTL (Close to 72 % ) The company stood at the bottom while
calculating PBIT
Blue dart has achieved much higher PBIT When compared with Gati and Safexpress due to more
business from high margin Air shipments On the other hand side, Gati has the lower PBIT till
2011-12 but they kept an eye on cost which resulted into higher PBIT next year
While looking up into the quarterly result , shooting u of Gati's PBIT in the month of Apr - June
12 -13 outshines , as the company has transferred substantial part of its express distribution &
Supply chain business [EDSC] to Gati-Kintetsu PVT Ltd Moreover, the company transferred its
shipping business to Gati PVT Ltd .](https://image.slidesharecdn.com/projectreportonexploringexpresscargo-131126131637-phpapp02/85/Project-report-on-exploring-express-cargo-37-320.jpg)
Project report on exploring express cargo
- 1. PROJECT REPORTON EXPLORING EXPRESS CARGO BUSINESS POTENTIAL IN ASSIGNED TERRITORY (GURGAON) SUBMITTED TO Prof. Shri Atmanand,Ph.D.DHRUBJI MANDAL Professor of Economics & Energy Dean-Consulting & Advancement at MDI, Gurgaon SUBMITBY:
- 2. ACKNOWLEDGEMENT The satisfaction, which accompanies the successful completion of the project, is incomplete without the mention of a few names. We take this opportunity to acknowledge the efforts of many individuals who helped us to make this project possible. We would like to express our heartfelt appreciation and gratitude to our project head Mr. AMIT KUMAR, Retail Head, Self-express .This project is a result of his teaching, encouragement and inputs in the numerous meetings he had with me, despite his busy schedule. He made sure that my stay in the office was a learning experience. I would also like to thank Prof. Shri ATMANAND, Ph.D. Professor of Economics &Energy, Dean-Consulting & Advancement at MDI for his constant support, continued encouragement guidance and indescribable help throughout this project. Finally, we would like to thank Our Institute, Management Development Institute for making this experience to work on this project. The learning from this experience has been immense and would be cherished throughout our life.
- 3. PREFACE This project is a scientific and systematic study of real issues on a problem with the application of management concept and skills. The study can deal with small or big issues in any division of an organization. It can be case study where a problem has been dealt with, through the process of management. The essential equipment of a project is that, it should contain scientific collection of data, analysis and interpretation of data leading to a valid conclusion. Working on Project is an essential part in MIBA curriculum. It enables the student to share the real experience in the corporate world. Our Project is Regarding the Economic analysis of Logistics Company The topic of our project is “Report On Exploring Express Cargo Business Potential In Assigned Territory” We hope this study will contribute to the organization.
- 4. INDEX S. No. Content 1 Industry Profile 2 An Over View : The Logistics Industry 3 Evolution of Logistics Industry 4 Indian Logistics Industry 5 The Study 5.1 Safexpress 5.2 Gati 5.3 Blue Dart 6 Location Mapping 7 Secluded destination by Zone 8 Graphical Analysis of Secluded destination 9 City Coverage By Zone 10 District Coverage By Zone 11 Comparison of all the Company Zone Wise 12 Mapping of the Zone Matrix & Transit Time Policy 12.1 Safexpress 12.2 Gati 12.3 Blue Dart 13 Mapping of AIR Business 14 Logical Industry Update 15 Competition Update 16 Financial Mapping of Competition 16.1 Quarterly Basis Analysis 16.2 Yearly Basis Analysis 17 Share Holding 18 Earnings Per share Before Extraordinary Idem 19 Profit Before Interest Tax and Exceptional Item 19.1 Quarterly Basis Analysis 19.2 Yearly Basis Analysis 20 Net Profit Loss Comparison 20.1 Quarterly Basis Analysis 20.2 Yearly Basis Analysis 21 Operating Profit Margin & Net Profit Margin 22 Recommendation 23 References
- 5. INDUSTRY PROFIE Several factors helped the growth of logistics industry in India over the decade that includes changing tax system, rapid growth in industries such as automobile, pharmaceuticals, FMCG and retail. However, major sectors that are investing huge amounts in logistics industry are aviation, metal & mining and consumer durables. With increasing competition and cost, focus on outsourcing, entry of foreign players is having positive impact on the industry. Three major contributors for the growth of the logistic industry are: emergence of organized retail, increase in foreign trade and India becoming soon the manufacturing hub. As per the World Bank‟s Logistics Performance Index 2010, India is placed at 47th position out of 155 countries.
- 6. An Overview: The Logistics Industry Logistics refers to movement of goods and raw materials from the place of production to the place of consumption. A recent study defined logistics as that part of the supply chain process that plans, implements and controls the efficient flow and storage of goods, services and related information from the point of origin to the point of consumption, in order to meet the customers‟ requirements. Transportation is the raw term used in place of logistics. Logistics was originated when it was felt that there was a great deal of need of transportation of arms, ammunitions, food supply, tools and thus the term logistics came into existence. 1920s and 1930s were the era of manufacturing. Less of customization; there were limited models of cars and that too of a particular range. At that time, the focus was entirely upon the production efficiency, companies concentrating more on the purchasing of cheap raw material and low cost transportation. With the changing emerging trends in the Indian market, the focus shifted from production to market orientation, the number of competitors increased in the market. Customers are now equipped with multiple choices and the companies shifted towards customization of more and more products. The mantra for being successful in the market to improvise the existing system the term purchasing of raw material transformed to procurement of raw material, thus there was addition of a number of warehouses and distribution system. Furthermore, the intense competition in the market place was on major highlights and concept of mere logistics turned into supply chain management. Now not only the attention given to production efficiency to produce better quality and low priced products. All this was possible through a good communication and interlink age among the vendors, manufacturers, distributors of supply chain. Next level is the value chain strategy, in this concept no one is customer or supplier but all echelons of supply chain are partners and work hand in hand. Thus in order to have a sound and oiled logistics network rule is to give boost to supply chain and value chain. Today's modern, efficient warehouses/distribution centers are the heart of logistics, and provide control, efficiency and velocity for goods moving through the system. Logistics is not confined to manufacturing operation alone. It is relevant to all enterprises, including Govt. institutions such as Hospitals and schools and service organization such as retailers, banks and financial service organizations. The study of logistics is especially important for bulk raw materials, where substantial outflow of freight is involved. Management of Logistics is an art, which is extremely difficult to perfect in India, JIT ends up being SHIT somehow in time.
- 7. The Transportation & Logistics industry sector comprises a wide range of service providers, covering all modes of transport – air, road, rail, sea – as well as related services such as warehousing, handling, stevedoring, and finally value added services like packaging, labeling, assembling etc. In addition to these 'physical' services, T&L includes all sorts of planning, organizational and management services in the area of transportation and logistics. Over the past years, we have seen a trend to consolidation, resulting in larger, integrated groups operating in more than one of the T&L sub-sectors. As a result, the limits between the T&L sub-sectors become more and more indistinct. The success of the logistics industry depends on the promptness with which the products can be delivered to a particular destination or to a client. Time and location are two factors, which can either make or mar the logistics industry. The logistics industry is governed by technology, integration, globalization, legislation and confederations. Formerly, warehousing facilities and logistic facilities were situated in remote areas like water port, beside rail tracks and those places in towns or cities which were not treaded up on by many. However, these sites shifted to rural areas and other localities. The logistics industry has experienced several changes over the years. These changes can be attributed to the growth in the retail industry and the manufacturing segments. Globally, the logistics industry is valued at US$ 3.5 trillion. The U.S., which contributes to over 25% of the global industry value, spends close to 9% of its GDP on logistic services. The Indian Logistics Industry is presently estimated at US$ 90 billion. The industry has generated employment for 45 million people in the country in comparison with the IT and ITeS sector which employs approximately 4.3 million people. According to CII It is forecast to grow at a Compound Annual Growth Rate (CAGR) of approximately 8% over the next three to five years. Third Party Logistics (3PL) Solutions, is slated to grow at a compound annual growth rate (CAGR) of over 16% from 2007-10. Consequently, 3PL service providers are expected to corner an increased share of the Indian Logistics pie, from 6% in FY06 to 13% in FY11, at a CAGR of 25%.
- 8. Evolution of Logistics Industry The evolution of logistics and Supply Chain Management (SCM) in the 1990s can be traced back to “physical distribution management” in the 1970s when there was no coordination among the various functions of an organization, and each was committed to attain its own goal. This myopic approach then transformed into “integrated logistics management” in the 1980s that called for the integration of various functions to achieve a system-wide objective. Supply Chain Management (SCM) further widens this scope by including the suppliers and customers into the organizational fold, and coordinating the flow of materials and information from the procurement of raw materials to the consumption of finished goods.
- 9. Indian Logistics Industry Positive Trends Seen In Indian Logistics Industries The Industry has got the desired Momentum Logistics has become a strategic Source of Competitive Advantages Huge Investment are Made by Foreign investors High investment are made by government to improve the infrastructure India is becoming the auto hub of the world
- 10. THE STUDY 1. SAFEXPRESS 2. . GATI 3. BLUE DART
- 11. Safe Express Safe press –India‟s Leading Logistics Company is renowned for its domain expertise and experienced manpower in the LSCM sector. Safe press can best understand your Logistics and distribution requirements and can offer the most suitable Logistics model and solution to you. Safe press has the largest network coverage across India traversing over 6,00,000 km. every day covering over 560 locations through more than 1000 routes operating 24 hours a day 365 days a year reaching these locations through its fleet of 3500 vehicles operating on. All Safe press vehicles have all-weather proof containers for safe transit. Safe press also operates through Air to locations directly covered by flights and to all other locations on a multi modal basis It's a fact that when you communicate with Email in the usual POP3 form, Web-mail, or even via SSL, your messages can be intercepted, read, changed, and counterfeited by others. Now there is a secure way to communicate over the Internet. There is an email client that fully protects your correspondence from prying eyes. Safe Express, designed with modern military level cryptography, securely protects all transmitted data. Safe Express is a powerful, highly configurable, yet easy to use email client. Safe Express is a public key email encryption client that automatically encrypts all your messages. Safe Express is an anti-spam email client that automatically classifies incoming emails as spam or non-spam.
- 12. Mr. Jain, CMD Safe press, was conferred the honor of „CEO of the Year‟ by Asia‟s Best Employer Brand Award. Safeexpress was bestowed with the Award for Excellence in Training for its continuous efforts to improve the skills of the supply chain workforce. Safe-express has been upgrading the skills of its employees over the years by providing them with on-the-job trainings and specialized courses. For its efforts, the company won awards for Innovation in Retention Strategy as well as for Best HR Strategy in line with Business. Safeexpress was awarded the „Best Air Cargo Logistics Company of the Year‟ at the 5th ASSOCHAM International Conference on Indian Civil Aviation. The prestigious award was presented to Mr. Rubal Jain, Director – safe express, by Mr. Ajit Singh, Honorable Minister for Civil Aviation in India. Safe express is the 'Market Leader' and 'Knowledge Leader' of the Indian Supply Chain & Logistics Industry. Safe express has the capability to deliver to every square inch of India. Safe express has over 580 offices and 48 hubs and mega-hubs across India. Safe express has over 2500 employees working in more than 580 offices across the country. Safe express has the largest nationwide network of over 580 destinations. Safe express fleet travels over 6,00,000 Kms every day. Safe express has the fastest transit-time in the industry of 1.8 days. Safe express delivers over 80 million packages a year. Safe express plans to open 32 Logistics Parks at key business centers all over the country in the next couple of year
- 13. GATI Gati pioneered express distribution service in India in 1989.Gati was one of the first companies to print its delivery date on the docket and offer money back guarantee, by accepting payment after producing proof of delivery – a POD. Gati started the practice which is now perceived as a standard norm in the industry. Gati first started operations between Madras and Madurai. After in-depth planning, Gati launched its operations in four stations: Hyderabad, Bangalore, Madras and Hosur in 1989.in the generic cargo segment. Gati's business model was different , it choose to focus on the customers‟ needs right from day one and time bound, point to point delivery, premium priced cargo management service was its key value proposition. Gati never operated the transport vehicles on its own from the beginning itself, instead developed the Business Partner concept of “Gati Associates”, thus giving rise to a team of entrepreneurs who were independent business partners of Gati. The name Gati was coined after short listing several Sanskrit-based names . Gati reflects speed with direction, true to the way of its operations Gati started its operations as a door-to-door cargo company, a division of Transport Corporation of India (TCI) in 1989. Mr. Mahendra Agarwal Founder & CEO of Gati Ltd wanted to rebuild TCI based on processes, systems and manage it professionally to meet consumer implicit and explicit delivery needs. Over period of 7 years, under the leadership of Mr. Mahendra Agarwal the division flourished into a small business and in 1994, Gati was ready to separate from TCI and perform on its own. The actual legal separation took place in 1996 and the division emerged, Gati came into being an 18 Crores cargo business, splitting from its 200 crores mother company, TCI. From Initial four years of its operation, delivery commitments took priority over complete utilization of capacity and Gati was focused on to its aim to provide time bound and point to point delivery.. .
- 14. Innovation, Value-addition and growth Gati introduced desk-to-desk service to meet the price sensitive customer market in 1994. The placement of desk to desk cargo was between regular transportation and premium cargo. Premium cargo was next day delivery and Desk to Desk was delivered within four days. As Gati grew in terms of business volume, services and revenue, Gati made the transition from small cargo services to cargo management. This was a period for many firsts. Gati introduced toll-free numbers for the first time in the Indian logistics segment and became the first 3PL service provider in India. Gati was also the first logistics company in India to be awarded an ISO 9001 certification. Gati's legal separation took place from TCI in 1996 through a de-merger process marked a period of rapid growth as the Gati took over parts of the TCI‟s business, the shipping division was named as Gati Coast to Coast and the TCI Highways division was taken over by Gati. Gati took its first steps towards acquiring a corporate identity, the beginnings of Gati Ltd. Based on volume of traffic, origin and destination, Gati tied up with Indian Airlines (IA) for a fixed price long term contract. Delivery of premium cargo became easy and accurate. IA complimented the 550 locations Gati served at that point of time. Gati expanded its service network to include multi-modal services, courier services and international operations to SAARC countries. Business grew from servicing 2 regions to 10. In Jan 2010, Gati went a step forward to help its customer by providing complete integrated Supply Chain Solution hence becoming a knowledgeable company by launching 'RedSun', Gati's Supply Chain Division. In Nov 2010, Gati also ventured into E-Commerce business by launching 'makemygiftz.com', Gati's new web service to offer its customer a complete ecommerce platform linked to a physical distribution network. Also, Gati Coast to Coast was rebranded and named as Gati Ships in 2010. Gati was given the title of “Consumer Super Brand” in 2009-2010, in Logistics
- 15. BLUE DART South Asia's premier courier and integrated express package Distribution Company. We have the most extensive domestic network covering over 33,742 locations, and service more than 220 countries and territories worldwide through our group company DHL, the premier global brand name in express distribution services. Our vision is to establish continuing excellence in delivery capabilities focused on the individual customer. In pursuit of sustainable leadership in quality services, we have evolved an infrastructure unique in the country today: The only one of its kind in the country today, that is focused on carriage of packages as its prime business, rather than as a by-product of a passenger airline. A dedicated aviation system to support Blue Dart's services is self-sustaining, with its own bonded warehouses, ground handling and maintenance capability Fitch Ratings India Pvt. Ltd. has assigned the highest "F1+ (ind)" [F one plus (Ind)] rating for our short term debt programme of Rs. 30 crores. Further, ICRA Ltd. has also assigned the highest "A1+" (pronounced A one plus) Rating for our Commercial Paper Programme of Rs. 25 crores. It has committed, diverse and over 8,318 strong are our most valued asset. All the achievements have been possible because they have a team who believes in themselves and their company, a team with a winning attitude. Social Responsibility is a core element in our corporate strategy. We as a socially responsible corporate have undertaken numerous steps to give back to communities, in whatever way they can.
- 16. Commitment towards community causes has been unwavering since our inception in 1983. We as a socially responsible corporate has an in-house Sustainability Team responsible for identifying and addressing various sustainability issues and supporting initiatives that make the world a better place for future generations. As part of the DHL Group & in line with its CSR platform, our major focus areas have been: - Go Teach (Education) - Go Green (Environment) - Go Help (Disaster Management Response In association with Oasis India (NGO) started an initiative called "Blue Edge - Empowering Lives", which is aimed at enriching the lives of young adults from difficult environment, who have not been able to complete their education. Through this initiative we enable around 50 students every six months, by providing training on English Speaking, Computer Skills, Life Skills and Customer Orientation. Since inception, 524 students have successfully completed this program and have felicitated at seven Graduation Ceremonies held in Blue Dart headquarters in Mumbai. One amongst the biggest concerns facing today's world is global warming. A warmer Earth may lead to changes in rainfall patterns, a rise in sea level, and a wide range of impacts on plants, wildlife, and humans. The main cause of Global Warming is emission of CO2. We have fervently taken up various steps in this regard, to sum up as 'Go Green' initiatives: In association with Think Foundation (NGO), Sarla Blood Bank and other blood banks regularly hold Blood Donation Drives at our facilities, to help young Thalassemia patients, who need blood transfusion every 15 days to survive. In October 2009, floods at Andhra Pradesh and Karnataka affected hundreds of lives, who lost their near and dear ones, homes and belongings. To make a difference in the lives of the affected people, we decided to do something quick and called for support from its Group Company DHL. Teams from all Business Units responded fast and a quick plan was worked out to send the relief material to the affected areas of Karnataka and Andhra Pradesh. Jointly with their colleagues from DHL,organized Volunteers Day, to promote the spirit of volunteerism amongst our employees in India.
- 17. Location Mapping: Company Scheduled Destinations Safe Express 582 Gati 407 Blue dart 394 City Coverage 442 333 257 District Coverage 250 278 178 Scheduled Destinations 394 582 Safe Express Gati Blue dart 407
- 18. Safexpress has the highest number of scheduled destinations & city coverage However; Gati leads the way in district coverage. All the three companies serve 143 common cities across India. There are close to 158 cities where only Safexpress is present. Safexpress & Gati serves 94 cities where blue dart is absent
- 19. Scheduled Destination by Zone Below is the Zone wise Scheduled destination of all 3 companies Company Safe Xpress Gati Blue Dart East 67 79 2 West 217 121 116 North 169 97 109 South 129 110 167 Total 582 407 394 East : Arunachal Pradesh, Assam , Bihar , Chhattisgarh, Jharkhand , Manipur, Meghalaya, Mizoram, Nagaland, Orissa, Sikkim, Tripura, West Bengal, Andaman & Nicobar West Gujarat, Madhya Pradesh, Maharastra, Daman, Diu, Dadra & Nagar Haveli, Goa. North Jammu & Kashmir, Himachal Pradesh, Punjab, Haryana, Rajasthan, Uttar Pradesh, UttraKhand, Chandigarh, Delhi South Andhra Pradesh, Karnataka, Kerala, Tamil Nadu, Pondicherry, Lakshadweep
- 20. Graphical Analysis of Scheduled Destination East 148 160 140 120 100 80 79 67 East 60 40 2 20 0 East Safe Xpress 67 Gati 79 Blue Dart 2 148 West 500 450 400 350 300 250 200 150 100 50 0 West 454 217 West 121 Safe Xpress 217 Gati 121 116 Blue Dart 116 454
- 21. South 450 400 350 300 250 200 150 100 50 0 South 406 167 129 Safe Xpress 129 South 110 Gati 110 Blue Dart 167 406 North 375 400 350 300 250 200 169 150 North 97 109 100 50 0 North Safe Xpress 169 Gati 97 Blue Dart 109 375
- 22. CITY COVERAGE BY ZONE Zone Safe Express Gati Blue Dart East 61 72 2 West 128 86 66 North 150 89 74 South 103 86 115 Total 442 333 257 East 160 140 135 120 100 80 60 61 72 East 40 20 0 East Safe Express Gati 2 Blue Dart 61 72 2 135 West 300 280 250 200 150 100 128 86 50 0 West West 66 Safe Express Gati Blue Dart 128 86 66 280
- 23. North 350 304 300 250 200 150 100 South 115 103 86 50 0 South Safe Express Gati Blue Dart 103 86 115 304 South 350 304 300 250 200 150 100 South 103 115 86 50 0 South Safe Express Gati Blue Dart 103 86 115 304
- 24. District Coverage By Zone Safe Express 45 57 94 54 250 East West North South total Gati 62 66 84 66 278 Blue Dart 2 46 65 67 180 Graphical Comparison of District Zone Wise East 109 150 100 45 62 50 2 East 0 Safe Express Gati Blue Dart District Wise Zone Coverage 45 62 2 East 109 West 180 160 140 120 100 80 60 40 20 0 169 57 Safe Express West 57 66 46 Gati West Blue Dart District Wise Zone Coverage 66 46 169
- 25. North 243 250 200 150 94 100 84 65 North 50 0 Safe Express North Gati Blue Dart District Wise Zone Coverage 94 84 65 243 South 187 200 150 100 54 66 67 South 50 0 Safe Express South Gati Blue Dart District Wise Zone Coverage 54 66 67 187
- 26. Comparision of all companies zone wise respectively 94 100 84 90 80 70 60 50 57 62 66 66 65 67 East 54 46 45 West 40 North 30 South 20 2 10 0 Safe Express Gati Blue Dart From going through all the data and Analyzing the Graph we come with some of the Conclusion that is as mentioned below: Safexpress is leading the way in Western &Northern region of India, In terms of scheduled destination and City coverage. Gati is leading the way in the Eastern part of the country Whereas Strength of Blue dart lies into Southern India Safexpress has the highest district Coverage in Northern India, Gati leads in Eastern & Western Part Whereas Blue dart leads into southern India.
- 27. Mapping of Zone Matrix & Transit Time Policy Common Guidelines: 1. 2. 3. 4. Transit Time excludes booking and delivery days Extra transit days for delivery at ODA locations. Booking after pickup cut off time is considered as next day pickup Transit time may increase if there is any holidays/Strikes/rallies at the destination Method of Calculation 1. Safexpress has ready transit time matrix 2. For Gati, It has been calculated using web based transit time calculator (Sample size 50+ cities). 3. To find out transit time From & To each Zone, 4-5 city samples has been taken which includes Tier1, Tier2 and Tier 3 cities Safexpress Zone Matrix Zone North One North Two East North East West One West Two South One South Two Central States Delhi , UP, Haryana, Rajsthan Chandigarh, Punjab, Himachal, Uttranchal, J & K West Bengal , Orissa, Bihar , Jharkhand, Chattisgarh Assam , Meghalaya, Tripura, Arunachal, Mizoram , Manipur, Nagaland, Sikkim Gujrat, Daman& Diu , Dadra & Nagar Haveli Maharsatra, Goa AP, Karnatka, TamilNadu, Pondicherry Kerla Madhya Pardesh
- 28. Transit Time Ex/To North One North Two East North East West One West Two South One South Two Central North One 2 2 4 4 3 4 4 5 3 North two 2 2 5 5 4 5 5 5 4 East 5 5 2 3 5 5 5 5 5 North East 6 6 3 2 6 6 6 6 6 West One 3 4 4 5 2 2 4 4 2 West Two 4 4 5 5 2 2 3 4 3 South One 4 5 4 5 4 3 2 2 3 Ex/To Transit Time for Safexpress North One North Two East North East West Two South One South Two West One Central North One Central South Two 6 5 4 3 2 1 0 North two East South One North East West Two West One South Two 5 5 5 6 5 5 3 2 5 Central 3 3 3 4 3 3 3 3 2
- 29. GATI Zone Matrix EDC AMC AMD BLR BOM CCU CJB GUA HYD IDR JAI JSP LKO MAA NAG NCR NDA PNQ NE1 NE2 J& K States Punjab, Haryana, Himachal Gujarat, Daman Diu, Dadra & Nagar Haveli Karnataka and Hosur Mumbai, Thane, Panvel, Bhivandi West Bengal, Sikkim Western Tamil Nadu , Kerala Assam Andhra Pradesh Madhya Pradesh Rajasthan Bihar , Odisha, Jharkhand Central UP , Eastern UP Northern Tamil Naidu , Pondicherry , Port Blair Vidharbha, Chhattisgarh National Capital Region , Gurgaon Western UP (Ghaziabad, Noida), UttraKhand Rest of Maharastra & Goa- Ex.Vidharbha & Mumbai Meghalaya, Mizoram, Tripura, Arunachal Pradesh Manipur & Nagaland Jammu & Kashmir GATI TRANSIT TIME GRAPH AMC J& K 12 NE2 10 8 NE1 6 4 PNQ 2 NDA 0 AMC AMD BLR AMD BOM CCU CJB NCR GUA NAG HYD MAA IDR LKO JAI JSP BLR BOM CCU CJB GUA HYD IDR JAI
- 30. Transit Time Table for GATI To/Ex AMC AMD BLR BOM CCU CJB GUA HYD IDR JAI JSP LKO MAA NAG NCR NDA PNQ NE1 NE2 J&K AMC 2 4 5 4 5 5 9 4 4 2 5 4 5 4 4 2 4 11 9 4 AMD 2 2 4 2 7 4 9 4 2 2 5 4 4 4 4 4 2 9 9 4 BLR 7 4 2 4 4 2 7 2 4 4 5 4 2 4 4 4 2 12 9 8 BOM 4 2 4 2 5 4 9 4 4 4 5 4 4 2 4 4 2 12 9 7 CCU 4 5 4 5 2 5 7 4 5 5 2 4 4 4 5 4 5 4 7 7 CJB 7 5 2 4 5 2 9 4 5 5 7 5 4 4 5 5 4 12 9 8 GUA 8 8 7 8 4 8 2 7 7 9 5 5 7 7 8 7 8 2 2 11 HYD 4 4 2 2 4 4 7 2 2 4 4 4 2 2 4 4 2 9 9 7 IDR 4 2 4 4 5 4 9 2 2 2 4 4 4 4 4 4 2 9 9 4 JAI 7 2 5 4 5 5 9 4 2 2 7 4 5 4 2 4 4 11 9 4 JSP 7 7 7 7 2 6 5 5 5 5 2 4 5 5 8 4 5 7 7 7 LKO 4 4 5 5 5 6 9 4 4 4 5 2 5 4 4 2 5 10 9 7 MAA 7 4 1 4 5 4 7 2 4 4 5 5 2 4 4 7 4 11 9 8 NAG 4 4 4 2 4 4 7 2 2 4 4 2 4 2 4 4 2 9 9 7 NCR 2 2 4 4 5 5 9 4 2 2 5 2 4 4 2 2 4 11 9 4 NDA 2 4 5 4 4 6 9 4 4 2 4 2 5 4 2 2 4 10 9 7 PNQ 4 2 2 2 5 4 9 2 4 4 4 4 4 2 4 4 2 11 9 7 NE1 11 11 11 11 4 11 2 11 8 9 5 11 10 7 12 11 11 2 4 12 NE2 9 9 9 9 4 9 2 9 8 9 7 7 9 7 9 9 9 2 2 11 J& K 4 7 9 7 9 8 10 7 7 5 8 7 9 7 8 5 7 10 10 2 For Gati, It has been calculated using web based transit time calculator (Sample size 50+ cities).
- 31. Blue Dart Zone Matrix ZONE North 1 North 2 East 1 East 2 North East Central West 1 West 2 South 1 South 2 States Delhi/NCR , Uttaranchal , Punjab , Haryana , Rajasthan , MP (Gwalior) Himachal Pradesh & Jammu Kashmir Uttar Pradesh , Jharkhand ,Bihar Chhattisgarh, Orissa, West Bengal Assam, Arunachal Pradesh, Meghalaya, Manipur, Mizoram, Nagaland, Sikkim Vidharbha & MP Gujarat, Daman & DiU Maharastra, Goa Andhra Pradesh, Karnataka Kerala , Tamil Nadu Transit Time Ex /To North 1 North 2 East 1 East 2 North East Central West 1 West 2 South 1 South 2 North1 North2 East1 East2 NorthEast Central West1 West2 South1 South2 6 6 6 12 13 9 9 11 10 11 7 0 7 12 13 6 9 7 10 10 7 6 6 9 10 5 7 5 6 9 12 11 9 6 6 7 12 10 11 11 12 7 9 7 10 11 11 5 7 5 6 8 9 5 7 5 6 8 7 7 11 11 11 11 6 9 13 11 12 12 9 0 5 3 7 7 13 5 0 3 5 6 10 3 3 0 5 5 12 4 5 3 0 3 12 4 7 4 3 0
- 32. Transit Time of Blue Dart South2 South1 North1 14 12 10 8 6 4 2 0 West2 North2 North 1 North 2 East 1 East1 East 2 North East Central East2 West 1 West 2 South 1 West1 NorthEast South 2 Central The effectiveness of the Couriers, distribution network depends on the speed of the pickup and delivery to all customers. It is essential that the goods are packaged and addressed at the time of making the booking, so that the courier contractor can make the pick up without delay. With invoice needed for transit and additional insurance, payment couldn‟t be easier, so offer competitive premiums are most. Comprehensive cover for costs and expenses relating to lost or damaged items, and the policy covers repair or replacement of the goods or actual (cost) value of the lost or damaged goods Items are covered for the whole time they are in transit – “floor to floor”. Transit cover commences from the time the goods are picked up and loaded until the goods are delivered to the receiver. Settlement of claims must be quick and easy.
- 33. Logistics Industry Updates Air Cargo terminal has been started in Ozark , Nasik Hyderabad Airport recognized as "Best Cargo Terminal of The Year" from Cargo Association of India (ACCAI) Railways Carried 647 MT freight in Apr-Nov 2012 Swiss World Cargo - The first Carrier to join proof of concept of IATA's multilateral e-Air Way bill Agreement initiative Express Industry Council of India (EICI) has alleged the domestic airlines have formed a price cateral that is exploiting the levy of fuel Surcharge (FSC) on cargo by noy applying a rational Pricing mechanism for the same Competetion Updates APL Logistics & Vescor has announced the formation of JV to serve automotive industry in India . APL logistics is leader in expert in automotive logistics especially finished vehicle logistics SpoyOn has updated the It system i.e. Spot connect wherein the customer can have their own portal which provide POD, Tracking Visibility, invoices and e-billing Red Express has started sending bulk advertising emails DB Schenker in Ban lore , focusing on last mile delivery Geodic, the 4th largest Player of Europe is increasing their presence as in last four years they have expanded from 7 to 17 locations Indospsce has inaugurated logistic park at chakan Indo Arya embarked upon creation of 4 Logistics Park, 2 lac sq. feet each. Currently, company has over 4 million ware housing space.
- 34. Financial Mapping of Competition 1. Quarterly Basis Month BLUE dart GATI safe EXPRESS Apr-Jun10-11 394 277 208 Juk-sep 10-11 442 294 226 Oct -Dec 10-11 444 319 225 Jan -March 10-11 479 337 229 Apr _june 11-12 416 372 225 Jun -sep 11-12 453 389 236 Oct -Dec 11-12 464 395 236 Jan-mar-11-12 496 411 212 Apr-jun12-13 457 432 288 Jul-sep12-13 470 418 298 Oct-Dec12-13 492 459 327 Jan-March 12-13 532 446 315 Financial Mapping Quaterly basis 30 3 Axis Title 25 20 15 10 5 0 3.1 2.7 3.3 2.7 3.2 13.7 3 2.3 2.9 2.3 10.7 2.5 9.2 7.1 7.51.6 1.4 9.2 7.7 7.1 1.4 2.3 5.7 1.7 1.4 0.4 2.8 9.4 -2.6 7.71.5 2.6 9.8 9.4 1.8 safe EXPRESS GATI BLUE dart
- 35. 2. On Yearly Basis Analysis Year BLUE dart (in crores) GATI (in crores) safe EXPRESS (in crores) 2010-11 1759 1228 892 2011-12 1829 1567 941 2012-13 1952 1755 988 2500 2000 1759 1829 1952 1755 1567 1500 BLUE dart (in crores) 1228 GATI (in crores) 1000 892 941 988 2010-11 2011-12 safe EXPRESS (in crores) 2012-13 500 0 When looked into quarterly performance, Gati has nearly steady growth till the end of 2011-12 which started growing rapidly in 2012-13 but Blue Dart has shown nearly constant growth The Key Competition of Safexpress i.e. Gati, Blue Dart has Touched respective revenue of INR 1228 crores, INR 1755 Crores in 2012-13. Also Safe express grew steadily where as Gati and Blue Dart Grew Close to 35.09% and 11.99% respectively over previous year.
- 36. Profit before interest tax and exceptional items 1. Quarterly basis analysis Month Apr-Jun10-11 Jul-sap 10-11 Oct -Dec 10-11 Jan -March 10-11 Apr _june 11-12 Jun -sep 11-12 Oct -Dec 11-12 Jan-mar-11-12 Apr-jun12-13 Jul-sep12-13 Oct-Dec12-13 Jan-March 12-13 BLUE dart GATI 36.8 31.1 36.1 51.8 50.3 44.1 32.8 44.1 58.1 45.5 65.2 58.4 safe EXPRESS 22.3 16.9 16.2 30.2 25.7 28.1 29.4 27.7 28.5 25.2 23.5 31.1 16.9 27.4 25.5 20.8 17.6 19.3 21.9 19.5 92.2 15.1 23.6 14.2 Quaterly analysis of Profit/Loss 25 20 15 10 5 0 Note: All the data are in crores 3.5 3 2.5 2 1.5 1 0.5 0 GATI BLUE dart safe EXPRESS
- 37. 2. Yearly Data Analysis of Profit before interest tax and exceptional items Blue Dart (in crores) Gati (In crores) Safexpress(In crores) 2010-11 156 105 71 2011-12 171 111 78 2012-13 227 145 145 Yearly analysis ofProfit before interest tax and exceptional items Blue Dart Gati Safexpress 160 107 115 51 52 16 11 2010-11 2011-12 52 42 2012-13 Through Safexpress was on the top of the list in term of revenue generation but due to more business from low margin FTL (Close to 72 % ) The company stood at the bottom while calculating PBIT Blue dart has achieved much higher PBIT When compared with Gati and Safexpress due to more business from high margin Air shipments On the other hand side, Gati has the lower PBIT till 2011-12 but they kept an eye on cost which resulted into higher PBIT next year While looking up into the quarterly result , shooting u of Gati's PBIT in the month of Apr - June 12 -13 outshines , as the company has transferred substantial part of its express distribution & Supply chain business [EDSC] to Gati-Kintetsu PVT Ltd Moreover, the company transferred its shipping business to Gati PVT Ltd .
- 38. Net Profit Loss Comparison Quarterly Graph presentation Month Apr-Jun10-11 Juk-sep 10-11 Oct -Dec 10-11 Jan -March 10-11 Apr _june 11-12 Jun -sep 11-12 Oct -Dec 11-12 Jan-mar-11-12 Apr-jun12-13 Jul-sep12-13 Oct-Dec12-13 Jan-March 12-13 BLUE dart (In crores) 25.6 21 24 36.1 34 29.8 22.4 29.1 40.6 32.2 45 41.8 GATI (In crores) 5.1 3.8 3.1 3.6 3.2 3.8 5.3 0.9 40.6 -7.8 5.1 5.7 safe EXPRESS (In crores) 12.2 14.5 11.8 12.8 13.4 13.8 13.5 11.2 13.6 13.1 11.3 13.9 Quaterly analysis of Profit/Loss 25 20 3.5 3 2.5 15 2 10 1.5 5 0 1 0.5 0 GATI BLUE dart safe EXPRESS
- 39. Yearly Analysis of Profit /Loss Year Blue Dart Gati Safexpress 2010-11 107 16 51 2011-12 115 11 52 2012-13 160 42 52 Net profit Yearly basis Blue Dart Gati Safexpress 160 107 115 51 52 16 11 2010-11 2011-12 52 42 2012-13 Analysis : Continuously increasing over the income, Control over operating expenditure, no interest cost etc. has allowed Blue Dart to increase profits year after which have reached INR 160 Crores by 2012-13. In 2012-13, Gati has transferred its EDSC & Shipping business to its subsidiary company due to which the liquidity inflow occurred and profit of the company has touched INR 42 Crores. From last three YearProfit of TCI has been nearly constant which stood at INR 52 Crores by 2012-13.
- 40. Operation Profit Margin & Net profit Margin Analysis 1. Operating Profit Margin Percentage and its Graphical analysis Month Apr-Jun10-11 Juk-sep 10-11 Oct -Dec 10-11 Jan -March 10-11 Apr _june 11-12 Jun -sep 11-12 Oct -Dec 11-12 Jan-mar-11-12 Apr-jun12-13 Jul-sep12-13 Oct-Dec12-13 Jan-March 12-13 BLUE dart GATI 13 10.2 10.8 14.2 12.3 9.9 6.6 9.1 11.6 9 12.4 11.2 safe EXPRESS 8.1 7.5 7.2 9.1 7.8 6.2 9.4 6.4 -1.6 8.8 3.9 3.7 5.5 6.2 5.6 6.4 6.2 6.2 5.8 5.5 5.9 5.2 4.8 5.4
- 41. Operating Profit Percentage 25 3.5 3 20 2.5 15 2 10 1.5 1 5 0.5 0 0 GATI BLUE dart safe EXPRESS 2. Net profit Margin Percentage Month Apr-Jun10-11 Juk-sep 10-11 Oct -Dec 10-11 Jan -March 10-11 Apr _june 11-12 Jun -sep 11-12 Oct -Dec 11-12 Jan-mar-11-12 Apr-jun12-13 Jul-sep12-13 Oct-Dec12-13 Jan-March 12-13 BLUE dart GATI 9.2 7.1 7.5 10.7 9.2 7.7 5.7 7.1 9.4 7.7 9.8 9.4 safe EXPRESS 2.5 1.7 1.4 1.6 1.4 1.4 2.3 0.4 13.7 -2.6 1.5 1.8 3.1 3.3 2.7 2.7 3.2 3 2.9 2.3 3 2.8 2.3 2.6
- 42. Net Profit Margin Percentage 25 20 15 10 5 0 3.5 3 2.5 2 1.5 1 0.5 0 GATI BLUE dart safe EXPRESS Gati & Safexpress pays much interest due to which their bottom lines get affected. The interest coverage ratio determines that how easily a company can pay interest expenses on outstandingdebt. The lower the ratio, the more the company is burdened by debt expenses;it should be above 1.5 In case of Gati it went 1.43 in 2011-12 which means its ability to meet interest expenses may be questionable. Safe express has kept the ratio between3.34 to 4.14 which is far better thanGati. It does not applicable to Blue Dart as the company has not taken any debt which shows that company has sufficient Liquidity. Refrences www.bluedart.com http://www.gati.com/ www.safeguard.com Different Logistic Magazine en.wikipedia.org/wiki/Logistics