Project report on exploring express cargo

PROJECT REPORTON EXPLORING EXPRESS CARGO

BUSINESS POTENTIAL IN ASSIGNED TERRITORY

(GURGAON)

SUBMITTED TO SUBMITBY: Prof. Shri Atmanand,Ph.D.DHRUBJI MANDAL Professor of Economics & Energy Dean-Consulting & Advancement at MDI, Gurgaon

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.

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.

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



20 Net Profit Loss Comparison



21 Operating Profit Margin & Net Profit Margin

22 Recommendation

23 References

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.

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.

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%.

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.

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

THE STUDY

1. SAFEXPRESS

2. . GATI

3. BLUE DART

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.

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

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..

.

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 e-

commerce platform linked to a physical distribution network. Also, Gati Coast to Coast was re-

branded and named as Gati Ships in 2010.

Gati was given the title of “Consumer Super Brand” in 2009-2010, in Logistics

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.

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.

Location Mapping:

Company Safe Express Gati Blue dart

Scheduled Destinations 582 407 394

City Coverage 442 333 257

District Coverage 250 278 178

582

407

394

Scheduled Destinations

Safe Express

Gati

Blue dart

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

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

Graphical Analysis of Scheduled Destination

0

20

40

60

80

100

120

140

160

Safe Xpress Gati Blue Dart

East 67 79 2 148

6779

2

148

East

East

0

50

100

150

200

250

300

350

400

450

500


West 217 121 116 454

217

121 116

454

West

West

0

50

100

150

200

250

300

350

400

450


South 129 110 167 406

129110

167

406

South

South

0

50

100

150

200

250

300

350

400


North 169 97 109 375

169

97 109

375

North

North

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

Safe Express Gati Blue Dart

East 61 72 2 135

6172

2

135

0

20

40

60

80

100

120

140

160

East

East


West 128 86 66 280

128

8666

280

0

50

100

150

200

250

300

West

West


South 103 86 115 304

10386

115

304

0

50

100

150

200

250

300

350

North

South


South 103 86 115 304

10386

115

304

0

50

100

150

200

250

300

350

South

South

District Coverage By Zone


East 45 62 2

West 57 66 46

North 94 84 65

South 54 66 67

total 250 278 180

Graphical Comparison of District Zone Wise

0

50

100

150


District Wise Zone Coverage

East 45 62 2 109

4562

2

109

East

East

020406080

100120140160180



West 57 66 46 169

57 6646

169

West

West

0

50

100

150

200

250



North 94 84 65 243

94 8465

243

North

North

0

50

100

150

200



South 54 66 67 187

5466 67

187

South

South

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.

0

10

20

30

40

50

60

70

80

90

100


45

62

2

57

66

46

94

84

65

54

66 67

Comparision of all companies zone wise respectively

East

West

North

South

Mapping of Zone Matrix & Transit Time Policy

Common Guidelines:

1. Transit Time excludes booking and delivery days

2. Extra transit days for delivery at ODA locations.

3. Booking after pickup cut off time is considered as next day pickup

4. 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 States

North One Delhi , UP, Haryana, Rajsthan

North Two Chandigarh, Punjab, Himachal, Uttranchal, J & K

East West Bengal , Orissa, Bihar , Jharkhand, Chattisgarh

North East Assam , Meghalaya, Tripura, Arunachal, Mizoram , Manipur, Nagaland, Sikkim

West One Gujrat, Daman& Diu , Dadra & Nagar Haveli

West Two Maharsatra, Goa

South One AP, Karnatka, TamilNadu, Pondicherry

South Two Kerla

Central Madhya Pardesh

Transit

Time

Ex/To North One

North two East

North East

West One West Two

South One

South Two Central

North One 2 2 5 6 3 4 4 5 3

North Two 2 2 5 6 4 4 5 5 3

East 4 5 2 3 4 5 4 5 3

North East 4 5 3 2 5 5 5 6 4

West One 3 4 5 6 2 2 4 5 3

West Two 4 5 5 6 2 2 3 5 3

South One 4 5 5 6 4 3 2 3 3

South Two 5 5 5 6 4 4 2 2 3

Central 3 4 5 6 2 3 3 5 2

0123456

North One

North two

East

North East

West One West Two

South One

South Two

Central

Ex/To Transit Time for Safexpress

North One North Two East North East West One

West Two South One South Two Central

GATI Zone Matrix

EDC States

AMC Punjab, Haryana, Himachal

AMD Gujarat, Daman Diu, Dadra & Nagar Haveli

BLR Karnataka and Hosur

BOM Mumbai, Thane, Panvel, Bhivandi

CCU West Bengal, Sikkim

CJB Western Tamil Nadu , Kerala

GUA Assam

HYD Andhra Pradesh

IDR Madhya Pradesh

JAI Rajasthan

JSP Bihar , Odisha, Jharkhand

LKO Central UP , Eastern UP

MAA Northern Tamil Naidu , Pondicherry , Port Blair

NAG Vidharbha, Chhattisgarh

NCR National Capital Region , Gurgaon

NDA Western UP (Ghaziabad, Noida), UttraKhand

PNQ Rest of Maharastra & Goa- Ex.Vidharbha & Mumbai

NE1 Meghalaya, Mizoram, Tripura, Arunachal Pradesh

NE2 Manipur & Nagaland

J& K Jammu & Kashmir

0

2

4

6

8

10

12AMC

AMDBLR

BOM

CCU

CJB

GUA

HYD

IDRJAI

JSPLKO

MAA

NAG

NCR

NDA

PNQ

NE1

NE2J& K

GATI TRANSIT TIME GRAPH

AMC

AMD

BLR

BOM

CCU

CJB

GUA

HYD

IDR

JAI

Transit Time Table for GATI

For Gati, It has been calculated using web based transit time calculator (Sample

size 50+ cities).

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

Blue Dart

Zone Matrix ZONE States

North 1 Delhi/NCR , Uttaranchal , Punjab , Haryana , Rajasthan , MP (Gwalior)

North 2 Himachal Pradesh & Jammu Kashmir

East 1 Uttar Pradesh , Jharkhand ,Bihar

East 2 Chhattisgarh, Orissa, West Bengal

North East Assam, Arunachal Pradesh, Meghalaya, Manipur, Mizoram, Nagaland, Sikkim

Central Vidharbha & MP

West 1 Gujarat, Daman & DiU

West 2 Maharastra, Goa

South 1 Andhra Pradesh, Karnataka

South 2 Kerala , Tamil Nadu

Transit Time

Ex /To North1 North2 East1 East2 NorthEast Central West1 West2 South1 South2

North 1 6 6 6 12 13 9 9 11 10 11

North 2 7 0 7 12 13 6 9 7 10 10

East 1 7 6 6 9 10 5 7 5 6 9

East 2 12 11 9 6 6 7 12 10 11 11

North East 12 11 9 7 6 9 13 10 12 12

Central 7 5 5 7 9 0 5 3 4 4

West 1 9 7 7 11 13 5 0 3 5 7

West 2 7 5 5 11 11 3 3 0 3 4

South 1 10 6 6 11 12 7 5 5 0 3

South 2 11 8 8 11 12 7 6 5 3 0

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.

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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.

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

9.27.1 7.5

10.79.2

7.75.7

7.19.4

7.79.8 9.42.5

1.7 1.41.6

1.41.4 2.3 0.4

13.7

-2.6

1.5 1.8

3.13.3 2.7

2.7 3.23 2.9 2.3

3

2.8

2.3 2.6

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Financial Mapping Quaterly basis

safe EXPRESS

GATI

BLUE dart

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

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.

1759 18291952

1228

15671755

892 941 988

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2010-11 2011-12 2012-13

BLUE dart (in crores)

GATI (in crores)

safe EXPRESS (in crores)

Profit before interest tax and exceptional items

1. Quarterly basis analysis


Apr-Jun10-11 36.8 22.3 16.9

Jul-sap 10-11 31.1 16.9 27.4

Oct -Dec 10-11 36.1 16.2 25.5

Jan -March 10-11 51.8 30.2 20.8

Apr _june 11-12 50.3 25.7 17.6

Jun -sep 11-12 44.1 28.1 19.3

Oct -Dec 11-12 32.8 29.4 21.9

Jan-mar-11-12 44.1 27.7 19.5

Apr-jun12-13 58.1 28.5 92.2

Jul-sep12-13 45.5 25.2 15.1

Oct-Dec12-13 65.2 23.5 23.6

Jan-March 12-13 58.4 31.1 14.2

Note: All the data are in crores

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Quaterly analysis of Profit/Loss

GATI

BLUE dart

safe EXPRESS

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

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 .

107 115

160

16 11

4251 52 52

2010-11 2011-12 2012-13

Yearly analysis ofProfit before interest tax and exceptional items

Blue Dart Gati Safexpress

Net Profit Loss Comparison

Quarterly Graph presentation

Month BLUE dart (In crores) GATI (In crores) safe EXPRESS (In

crores)

Apr-Jun10-11 25.6 5.1 12.2

Juk-sep 10-11 21 3.8 14.5

Oct -Dec 10-11 24 3.1 11.8

Jan -March 10-11 36.1 3.6 12.8

Apr _june 11-12 34 3.2 13.4

Jun -sep 11-12 29.8 3.8 13.8

Oct -Dec 11-12 22.4 5.3 13.5

Jan-mar-11-12 29.1 0.9 11.2

Apr-jun12-13 40.6 40.6 13.6

Jul-sep12-13 32.2 -7.8 13.1

Oct-Dec12-13 45 5.1 11.3

Jan-March 12-13 41.8 5.7 13.9

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GATI

BLUE dart

safe EXPRESS

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

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.

107115

160

16 11

4251 52 52

2010-11 2011-12 2012-13

Net profit Yearly basis

Blue Dart Gati Safexpress

Operation Profit Margin & Net profit Margin Analysis

1. Operating Profit Margin Percentage and its Graphical analysis


Apr-Jun10-11 13 8.1 5.5

Juk-sep 10-11 10.2 7.5 6.2

Oct -Dec 10-11 10.8 7.2 5.6

Jan -March 10-11 14.2 9.1 6.4

Apr _june 11-12 12.3 7.8 6.2

Jun -sep 11-12 9.9 6.2 6.2

Oct -Dec 11-12 6.6 9.4 5.8

Jan-mar-11-12 9.1 6.4 5.5

Apr-jun12-13 11.6 -1.6 5.9

Jul-sep12-13 9 8.8 5.2

Oct-Dec12-13 12.4 3.9 4.8

Jan-March 12-13 11.2 3.7 5.4

2. Net profit Margin Percentage


Apr-Jun10-11 9.2 2.5 3.1

Juk-sep 10-11 7.1 1.7 3.3

Oct -Dec 10-11 7.5 1.4 2.7

Jan -March 10-11 10.7 1.6 2.7

Apr _june 11-12 9.2 1.4 3.2

Jun -sep 11-12 7.7 1.4 3

Oct -Dec 11-12 5.7 2.3 2.9

Jan-mar-11-12 7.1 0.4 2.3

Apr-jun12-13 9.4 13.7 3

Jul-sep12-13 7.7 -2.6 2.8

Oct-Dec12-13 9.8 1.5 2.3

Jan-March 12-13 9.4 1.8 2.6

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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

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BLUE dart

safe EXPRESS

http://www.bluedart.com/

http://www.gati.com/

http://www.safeguard.com/

Project report on exploring express cargo

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