2. Incorporated on 25th April, 1995 registered office at Secunderabad
Provided services ranging from traditional point to point transportation to
complex end-to end integrated logistics and supply chain management
solutions.
Was Leader in Express Cargo movement and
Pioneer in Distribution and Supply Chain Management solutions in India.
They offered a spectrum of services that were cost efficient and flexible
Operates in three types of business segment viz.
Logistics
Shipping
Fuel Stations
3. “Express Industry” comprised courier companies which offered domestic &
international services.The consignments held by the express companies were
broadly classified into :
Documents Any material comprising paper such as correspondence, bill /
invoice, brochure, catalogue, books, files, account details etc.
Non Documents Items with or without commercial value like CKD units,
small machineries, electronic parts, spare parts etc.
On overall basis, documents accounted 60% of total revenue & the rest 40% was
non documents.
The 1980’s saw the entry of professional players into the express industry & since
then the industry grew at a steady rate.
The Indian Express Cargo industry (organized & Un-organized both) had
enormous prospects for growth in local well as international markets.
The express industry saw progressive growth in the last decade of 20th century
due to trade & services.The elimination of trade barriers, globalization of
markets & trade led to expansion in business
4. Sector Revenue(Rs. In crore) Market share (%)
Organized 1628 65
Semi Organized &
Unorganized
618 25
EMS Speed post 247 10
Total 2493 100
The ingress of international players led to transition & growth as well as posed
challenges by web based technology.
Express market Scenario Over 2000 express companies in India. 20% in
organized sector. 25% in semi-organized sector & others in unorganized sector.
5. Comprise of service providers with national & international reach
fortified with fully equipped infrastructure & other value added
services.
The major consumer sectors are: Pharmaceuticals, IT, Readymade
garments & FMCG products.
Domestic companies act in consolidation to international service
providers & some of them even have tie-ups with them.
Solutions like Just inTime & e-Commerce enabled considerable business
opportunity for web enabled services.
The organized sector which was principally in the package segment of
Cargo management illustrated high growth.
Unorganized / semi organized sector faced pressure because of
unfavorable pricing environment.
6. The organized sector was by and large into documents business.The
margins were much lower than package segment & also barriers to
entry were also very less
The industry was not regulated therefore licensing was not requisite to
setup a cargo management company.
Entry barriers in the Package segment were high because company
needed strong distribution network, latest technology, well trained
staff, strong brand image & economies of scale. (given the operating
leverage of industry was very high)
Cargo management companies were leveraging on their strong
distribution network & were providing customers with value added
services.
Logistics management emerged as a new growth opportunity for these
companies because a lot of manufacturing companies were
outsourcing their logistics requirements to third parties.
7.
8. • The barriers to entry are very high. One of the reasons that
there is a high entry barrier is the high fixed cost associated
with establishing the international transportation network.
This includes hubs, ground transportation vehicles, air fleet,
etc.
• Additionally, existing companies can take advantage of the
absolute cost advantage achieved by large volume of
shipments and economies of scale.
9. • The bargaining power of large buyers in shipping service
industry is high.
• Cost associated with switching from one shipping service to
another is very low. Therefore, buyers can turn to a shipping
provider that offer faster service, lower price, or service
innovation with ease. This is especially true for large
corporations, like IBM, which ships in large volumes and can
bargain quantity discounts.
10. • The supplier power within this industry is fairly low.
• Large shipping service provider can affect prices of supplies,
like packaging materials.This is because they buy in large
quantities and can turn to different suppliers easily.
11. • There are not many substitutes to shipping. In this day and
age where many businesses have strong online presence and
a small physical presence, it would be difficult to find a
substitute in delivering their product.
• Shipping services are very much similar to a commodity, in
that it is not easily replaced with another service or even a
similar service.
12. • Established players in shipping service industry complete
rigorously for a market share, the company who responses
first to the constantly changing environment wins.
Established companies have to strive for continuous
improvement in quality, lowering price, and innovation.
• There is very low switching cost for consumers in this
industry making rivalry even more intense.
• In addition, intense rivalry is also due to the fact that
maintaining the infrastructure of an express delivery
company presents an exit barrier due to high fixed costs.
13. Environmental
Sector
Nature of
impact
Impact
Market Is dominated by the unorganized sector and Gati
Ltd functions in the unorganized sector.
Technological High sophisticated technology usage.
Economic Liberalization and Globalization has made the
industry favorable for investment.
Regulatory Lack of proper regulatory body results in
inefficient functioning of industry.
Political No major role is played by it.
Socio-cultural Service is customized to delight the customer.
International Intense rivalry and competition prevails in the
International Competition.
14. Strengths:
Dominant player in the surface cargo segment in India, which
accounts for more than 55% of the total….
Niche value additions such as third-party logistics, trucking and
warehousing solutions….
Re-engineered hi-tech warehouses and distributing
infrastructure…
Advanced IT solutions to back up its services….
It provides multi modal connectivity….
Weakness:
Insufficient regional and global presence as compared with
its competitors….
It has been neglecting courier segment
15. Opportunity:
Improvement in the logistics infrastructure in the
country-better roads, improved ports etc..
Entry of a large no. of global retailers
Increasing investments, booming manufacturing and
development of organized retail sectors-provides
business potentials to express industries
Threats:
Global competitors
Space limitations
Government Policy
16.
17. It focuses on services it provide currently.
It also focuses on recent customers and new
customer development by providing them
customized services.
18. They provide services to over 200 countries.
The company setup offices in Hong Kong,
Thailand, Malaysia and Indonesia.
19.
20. No question on purchase raw material
The Gati lettering in an original and unique font which
represents
Reliability
Speed
Discipline
It progress in the areas of technology and automation is a
response to changes in manufacturing systems, inventory
management and supply chain practices across the world.
21. It reports 73% increase in PBT (Q1 report 2015)
Last Dividend was 25%.
Annual turnover of 12094 Million out of which 70% from
logistics division, 7% from shipping division and 23% from fuel
station division.
70-80% turnover from courier business and 20-30% from
cargo business.
Growth of logistics, shipping and fuel station are 22.47%, 11%
and 4% respectively.
GDP is US$692 billion.
22. Workforce of 2364 employee
512 trainees
For training, it co-opted consultants and resource persons
from reputed institutions such as IIM,NIIT, ICFAI, AIMA etc.
Promotion policy opened a transparent career development
map for all especially those on the ‘FastTrack’.
It contributes to education, training and assistance to small
industries
23. 622 out of 626 districts in India
Value added services like warehousing, trucking, express and
time-bound cargo.
Gati has always tried to stay one step ahead by innovating
and transforming its processes, refining service offerings,
redefining customer standards internally and externally and
using technology to drive up customer satisfaction.
It provide multi-modal transportation– road, rail, sea and air.
collaboration and co-operation with B2B customers and
partners
24x7 call centres to understand and manage customer
expectations, plan cargos, shipments & routes.
Marketing policy
24. It was an ISO 9001:2000 certified company for design,
marketing and providing cargo management services.
It offers an integrated Express Distribution and customized
Supply Chain Solutions to customers across diverse industry
verticals.
connectivity across air, road, ocean and rail
promise to stay Ahead in reach in service quality, wide
network, technology, automation
Information through the website, e-mail, SMS and toll free
number.
Gati launched the first exclusive Cargo Train between
Mumbai and Kolkata in association with Indian Railways.
Operational policy
25. Aims to be one-stop service provider in logistics solutions,
focusing on warehousing and infrastructure, express
distribution centers, central distribution center, information
technology and human resources.
By providing contribution, it aimed at strengthening the
society by empowering the weaker segments with
education, funding and technical assistance.
It is trying to grow at steady rate.