TCI Express is headquartered in Gurugram, established in the year 1996 by the name of TCI XPS as a division of erstwhile Transport Corporation of India Ltd (TCIL) to cater to the express cargo logistics needs of its existing and potential customers.
The Company has been separated from TCIL and renamed TCI Express Ltd effective from April 1, 2016, after positioning itself as an end to end express distribution specialist in a time-bound manner via surface transport.
Sample of CDI’s Enterprise Insight Analysis ReportWungJae Lee
CDI is a "GUILD" consisted of 'consulting craftspeople' specialized in solving our client's unique management issues and providing a hands-on, order-made solution, which ultimately helps our client overcome their issues. Recently we made a corporate profiling of ComfortDelgro Corporation, the largest Taxi company in Singapore. This material is organized in the order of presenting CDI’s understanding of ComfortDelGro Corporation’s business based on the market environment, competitive environment and business economics. We can offer you a brief but in-depth insight analysis report about your investment candidate companies. And also, We can offer you an industry version of above insight analysis report which can help to build your mid-long term investment portfolio strategy.
To see more details, please visit our website on http://www.cdi-japan.co.jp/english/
Dear Members,
We are pleased to present to you ‘TransPrice Times – July 2018 edition’.
This periodical covers key court rulings on selection of different tested party; FAR analysis and Rule of consistency.
Apart from this, recent news relating to the draft e-commerce policy released by Government of India have been discussed in the periodical. Links to the OECD’s recent activity and our Special Edition article on ‘Changing Colours of Indian Tax Audit (3CD)’ have also been cited.
We trust you will find this update useful and informative.
We would be happy to know your suggestions. You can write to us at akshaykenkre@transprice.in
Thank You and Happy Reading!!
Market Research Report : Third Party Logistics Market in India 2012Netscribes, Inc.
For the complete report, get in touch with us at : info@netscribes.com
Indian economic growth is creating demand for third party logistics (3PL) services in the country. High cost of logistics, growing dependence on 3PL services from automobiles and auto components sector is expected to drive the demand for 3PL sector in India. Cost reduction coupled with high productivity by electronics manufacturers boosts the 3PL market. 3PL providers need to customize their services and charge competitive rates to benefit from the retail boom in India.
The report begins with an introduction section, classifying the logistics sector into its three broad segments and highlighting the focus of the study. The evolution of the 3PL services is then projected. The 3PL workflow is also briefly highlighted. The change of functions based on logistics services is illustrated in the 3PL pyramid. Different types of 3PL providers are classified based on their functions. Advantages of outsourcing logistics services to third parties are also pointed out in this section.
Market overview section provides a brief snapshot of both global and domestic 3PL market. To begin with, it gives a brief overview of global third party logistics market followed by its market size & growth. Considering the gross logistics revenue of top 50 global 3PL players the share of different continents is also found out. Major players in global 3PL market are identified and share of top 10 global 3PL players is also given. Subsequently, a brief overview of Indian 3PL market followed by its market size & growth is projected. The segmentation of 3PL market is given. The current and expected share of 3PL in total logistics is also shown. The increase in share of local companies outsourcing logistics services is depicted with top five reasons for outsourcing. The share of 3PL service providers in India is found out here. Further the respective sectors are analyzed wherein the customer’s propensity to outsource activities is more. Demand for 3PL services from various sectors and from different regions along with their share are also identified in this section. 3PL market presence in India is also mapped here.
Sample of CDI’s Enterprise Insight Analysis ReportWungJae Lee
CDI is a "GUILD" consisted of 'consulting craftspeople' specialized in solving our client's unique management issues and providing a hands-on, order-made solution, which ultimately helps our client overcome their issues. Recently we made a corporate profiling of ComfortDelgro Corporation, the largest Taxi company in Singapore. This material is organized in the order of presenting CDI’s understanding of ComfortDelGro Corporation’s business based on the market environment, competitive environment and business economics. We can offer you a brief but in-depth insight analysis report about your investment candidate companies. And also, We can offer you an industry version of above insight analysis report which can help to build your mid-long term investment portfolio strategy.
To see more details, please visit our website on http://www.cdi-japan.co.jp/english/
Dear Members,
We are pleased to present to you ‘TransPrice Times – July 2018 edition’.
This periodical covers key court rulings on selection of different tested party; FAR analysis and Rule of consistency.
Apart from this, recent news relating to the draft e-commerce policy released by Government of India have been discussed in the periodical. Links to the OECD’s recent activity and our Special Edition article on ‘Changing Colours of Indian Tax Audit (3CD)’ have also been cited.
We trust you will find this update useful and informative.
We would be happy to know your suggestions. You can write to us at akshaykenkre@transprice.in
Thank You and Happy Reading!!
Market Research Report : Third Party Logistics Market in India 2012Netscribes, Inc.
For the complete report, get in touch with us at : info@netscribes.com
Indian economic growth is creating demand for third party logistics (3PL) services in the country. High cost of logistics, growing dependence on 3PL services from automobiles and auto components sector is expected to drive the demand for 3PL sector in India. Cost reduction coupled with high productivity by electronics manufacturers boosts the 3PL market. 3PL providers need to customize their services and charge competitive rates to benefit from the retail boom in India.
The report begins with an introduction section, classifying the logistics sector into its three broad segments and highlighting the focus of the study. The evolution of the 3PL services is then projected. The 3PL workflow is also briefly highlighted. The change of functions based on logistics services is illustrated in the 3PL pyramid. Different types of 3PL providers are classified based on their functions. Advantages of outsourcing logistics services to third parties are also pointed out in this section.
Market overview section provides a brief snapshot of both global and domestic 3PL market. To begin with, it gives a brief overview of global third party logistics market followed by its market size & growth. Considering the gross logistics revenue of top 50 global 3PL players the share of different continents is also found out. Major players in global 3PL market are identified and share of top 10 global 3PL players is also given. Subsequently, a brief overview of Indian 3PL market followed by its market size & growth is projected. The segmentation of 3PL market is given. The current and expected share of 3PL in total logistics is also shown. The increase in share of local companies outsourcing logistics services is depicted with top five reasons for outsourcing. The share of 3PL service providers in India is found out here. Further the respective sectors are analyzed wherein the customer’s propensity to outsource activities is more. Demand for 3PL services from various sectors and from different regions along with their share are also identified in this section. 3PL market presence in India is also mapped here.
Route Mobile Ltd, is a leading cloud communications provider and going public on 9th September, 2020. The issue opens 9th and closes 11th September.
Route Mobile Ltd caters to enterprises, Over-The-Top (OTT) players and mobile network operators (MNO) the range of enterprise communication services includes Messaging, Voice, Email, and SMS Filtering, Analytics & Monetization solutions.
Route Mobile IPO, price band Rs. 345-350 per share and the lot size is of 40 shares and in multiples thereafter. Investment per lot is Rs.14, 000. Route Mobile plans on raising Rs. 600 crores with a combination of fresh (Rs. 240 cr) and Offer for Sale (Rs. 360 cr) the company has offices in 18+ locations worldwide being able to provide services locally.
These are only some of the advantages of the company. For a detailed overview, you can refer Jiffy’s IPO page of Route Mobile Ltd here - https://jiffy.choicebroking.in/ipo/route-mobile.html
Brief study on financial health/goal of Vodafone IdeaAjayVerma335
This Assignment project is based on financial goal/health of a particular company i.e. Vodafone Idea.
This project has covered all the aspects related to financial strategies of vodafone Idea, its perspective, etc.
Automobile Manufacturers Fined for Restricting Access to Replacement Parts - ...KK SHARMA LAW OFFICES
Competition Law and Intellectual Property Rights (IPRs), since ages, have had a difficult marriage. As is popularly believed that a happy, successful and enduring marriage, between spouses, is good for the growth, stability and future development of the children, nearly in a similar way, it is necessary for this marriage between competition law and IPRs for the overall and long-term benefit of the society. IPRs are statutorily given monopolies and these are given for good reasons to induce inventions and other creative outcomes from some gifted members of the society to be revealed to the society at large so that , in exchange for granting of short term monopoly to the contributor of the IPRs, the society is revealed the new inventions and creations which become publicly available after the lapse of statutorily granted monopoly time period. During the period during the grant of these statutorily allowed monopolies, the holder of IPRs is permitted reasonable protection under competition law as well. The order in automobiles spare parts’ case passed by CCI on the question of reasonableness is an important landmark in this area of jurisprudence of IPRs and competition law. The author, who as the first Director General of functional Competition Commission of India, established the competition law investigation framework in India, looks back at this order of CCI in this piece.
Route Mobile Ltd, is a leading cloud communications provider and going public on 9th September, 2020. The issue opens 9th and closes 11th September.
Route Mobile Ltd caters to enterprises, Over-The-Top (OTT) players and mobile network operators (MNO) the range of enterprise communication services includes Messaging, Voice, Email, and SMS Filtering, Analytics & Monetization solutions.
Route Mobile IPO, price band Rs. 345-350 per share and the lot size is of 40 shares and in multiples thereafter. Investment per lot is Rs.14, 000. Route Mobile plans on raising Rs. 600 crores with a combination of fresh (Rs. 240 cr) and Offer for Sale (Rs. 360 cr) the company has offices in 18+ locations worldwide being able to provide services locally.
These are only some of the advantages of the company. For a detailed overview, you can refer Jiffy’s IPO page of Route Mobile Ltd here - https://jiffy.choicebroking.in/ipo/route-mobile.html
Brief study on financial health/goal of Vodafone IdeaAjayVerma335
This Assignment project is based on financial goal/health of a particular company i.e. Vodafone Idea.
This project has covered all the aspects related to financial strategies of vodafone Idea, its perspective, etc.
Automobile Manufacturers Fined for Restricting Access to Replacement Parts - ...KK SHARMA LAW OFFICES
Competition Law and Intellectual Property Rights (IPRs), since ages, have had a difficult marriage. As is popularly believed that a happy, successful and enduring marriage, between spouses, is good for the growth, stability and future development of the children, nearly in a similar way, it is necessary for this marriage between competition law and IPRs for the overall and long-term benefit of the society. IPRs are statutorily given monopolies and these are given for good reasons to induce inventions and other creative outcomes from some gifted members of the society to be revealed to the society at large so that , in exchange for granting of short term monopoly to the contributor of the IPRs, the society is revealed the new inventions and creations which become publicly available after the lapse of statutorily granted monopoly time period. During the period during the grant of these statutorily allowed monopolies, the holder of IPRs is permitted reasonable protection under competition law as well. The order in automobiles spare parts’ case passed by CCI on the question of reasonableness is an important landmark in this area of jurisprudence of IPRs and competition law. The author, who as the first Director General of functional Competition Commission of India, established the competition law investigation framework in India, looks back at this order of CCI in this piece.
Stock Pitch For Logistics Services PowerPoint Presentation PPT Slide TemplateSlideTeam
Our Stock Pitch For Logistics Services PowerPoint Presentation PPT Slide Template is the perfect way to pitch your stock. We have researched thousands of stock pitches and designed the most impactful way to convince your investors to invest in your equity. https://bit.ly/2UCHS2w
Mahendra K Shah, Managing Director, V-Trans (India) LimitedV-Trans
Our Managing Director, Mr. Mahendra Shah in talks with Cargo connect magazine on Government policies & their impact on Logistics sector & services & future plans of V-Trans (India) Ltd.
Running Head WOBBLY WHEELS DISTRIBUTION COMPANY1WOBBLY WHEELS .docxagnesdcarey33086
Running Head: WOBBLY WHEELS DISTRIBUTION COMPANY 1
WOBBLY WHEELS DISTRIBUTION COMPANY 7
Wobbly Wheels Distribution Company
Richard Kennedy
Case Study
Institution
6/1/2014
Part 1
Business environment
Business environment refers to both internal and external factors which affect the operations of a given business or organizational entity (Fernando, 2011). Wobbly Wheels Distribution Company is a distribution and transportation company that serves major cities in the mid-Atlantic region. It is located in Wilmington, Delaware and boosts of more than 400 employees. The company has 6 distribution channels for consolidating freight and 100 delivery vehicles. The business environment is highly competitive and there has been stagnant growth due to a slow economy. The president of the company wishes to reduce the expenses by 5% and set growth at 5% in order to fund new initiatives.
According to Wobbly Wheels (WW) Distribution Company, their environment of operation is affected by several other business environment factors. In developing an efficient IT strategic plan, the company has to evaluate various results such a development may bring to the firm.
In developing a new IT strategic plan, Wobbly Wheels Distribution Company will have to consider the effects on its personnel. The new plan must be a morale booster rather than a demoralizing tool to the customers. The drivers are the most outspoken and good ambassadors to the company and the new system should provide them with an extra motivation.
The company also considers the legal factors in their operations. This involves ensuring compliance with the set federal and state laws whereby the ones given foremost attention are: the Sarbanes Oxley financial audit, a federal requiring that vehicles go through a safety check every 10,000 miles and finally an FCC reporting requirement which requires statements on the number of hours each driver is involved in the company’s operations.
In developing a new IT strategic plan, the company should consider the technological implications of the system. The two-way radio that is used as a mode of communication between the dispatchers at the terminals and the drivers usually has low power which may result in relatively short range compared to other high power radios. Also the further apart the users are the higher the possibility of harmful interferences e.g. a nearby PMR446 walkie-talkie may unknowingly block the lines thus interfering with communication.
Business strategic objective
A business strategic objective refers to the goals set by an organization or a business entity whose fulfillment is deemed as appropriate by the business. (Kelly, 2006)
Wobbly Wheels Distribution Company has set various strategic objectives. One of their main objectives is providing their customers with warehousing services as this will go a long way in reducing their customers’ delivery time since their products will be available locally. Another objective is improving the.
Emami Limited (EL), the flagship company of the Kolkata-based Emami group. It is one of the leading FMCG companies in India. It is engaged in the manufacturing of herbal and ayurvedic products in personal, cosmetic and health care segments. Its products are sold under the brands, ‘Emami’ (Personal & Cosmetic), ‘Himani’ (Ayurvedic), ‘Zandu’ and Kesh King.
Narayana Hrudayalaya (NH) was incorporated by renowned cardiac surgeon Dr. Devi Prasad Shetty in 2000. The company was started as a predominant cardiac care hospitals group initially. Gradually, it also diversified into other specialties although cardiac still remains the mainstream specialty. NH operates a network of hospitals, diagnostic centers, clinical or test centers. It offers medical, surgery and diagnostics and supports services.
Narayana Hrudayalaya (NH) was incorporated by renowned cardiac surgeon Dr. Devi Prasad Shetty in 2000. The company was started as a predominant cardiac care hospitals group initially. Gradually, it also diversified into other specialties although cardiac still remains the mainstream specialty. NH operates a network of hospitals, diagnostic centers, clinical or test centers. It offers medical, surgery and diagnostics and supports services.
Accelya Kale Solutions Limited provides a suite of financial and business intelligence solutions to the Airlines. Formerly known as Kale Consultants Limited, is a part of the Accelya group since 2010.
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
Lecture slide titled Fraud Risk Mitigation, Webinar Lecture Delivered at the Society for West African Internal Audit Practitioners (SWAIAP) on Wednesday, November 8, 2023.
1. INITIAL COVERAGE REPORT
02.05.2018
Source: Investor Presentation
Overview
Public in 2016
Market Cap. - 2027.96 cr.
Sector - Logistics
CMP - 514.50
Share holding pattern as on 201709
Promoter % - 66.13
Free Float % - 33.87
Summary
(cr.)
FY17 FY16 FY15
Revenues 753.87 663.19 658.63
PAT 40.72 28.27 26.25
EPS 10.63 7.38 6.85
P/E 37.19 - -
EV/EBITDA 24.69 - -
D/E 0.2 - -
RoCE 35.95 - -
RoE 29.57 - -
COMPANY BACKGROUND:
Company is headquartered in Gurugram, established in year 1996
by the name of TCI XPS as a division of erstwhile Transport
Corporation of India Ltd (TCIL) to cater to the express cargo logistics
needs of its existing and potential customers.
Company has been separated from TCIL and renamed TCI Express
Ltd effective from April 1, 2016 after positioning itself as end to end
express distribution specialist in a time bound manner via surface
transport.
It is a market leader in Express Surface Logistics and follows Hub
and Spoke model.
It owns network of 550 branches cater to 40,000+ pick-up locations
and delivery locations across India.
It also runs domestic as well as international Air Cargo Service for
time sensitive deliveries. Globally it makes air delivery to 208
countries.
It caters to many of the blue chip and MSME clients from across
sectors like Electronics, Retail, IT, hardware, Auto component,
Pharma, Telecom, Electricals and E- Commerce.
Currently 2500+ professionals are employed with the company.
Having achieved financial and growth stability, TCI de-merged this
division in 2016. TCI issued one equity share to existing
shareholders for every two equity shares.
2. Source: Investor Presentation
TCI Ltd. Divisions (share of XPS rising)
The de-merger was done to sharpen TCIEL’s focus on express delivery services and offer time definite
solutions for customer’s requirements.
As the chart shows the revenue contribution of the TCI express division before it was separated from its parent
company was continuously rising unlike most of the other divisions.
In terms of market share, TCIEL claims to command 3% of the market share of the overall express logistics
market, estimated at 30,000 crore. However, from a broader perspective, with total logistics industry
(transportation, warehousing, value added service and inventory in-transit cost) pegged at 13% of overall GDP
($300 billion), TCIEL claims to carry goods worth $7 billion (in value) arriving at an indicative market share of 2-
3%.
3. Source: Investor Presentation
Source: Investor Presentation
Services offered by TCIEL include surface express, domestic and international air express, e-com express,
priority express and reverse express.
These logistical solutions are spread across industry segments such as automobile spare parts,
pharmaceuticals, retail, ecommerce, telecom and SMEs.
4. Source: Investor Presentation
The offerings mainly address B2B customers (95% of revenue). It involves door-to-door pick-up and delivery of
parcels in a time bound manner predominantly via surface transport.
TCIEL claims to have one of the largest reaches domestically. It serves 670 districts (out of 707) through a
fleet of over 3000 containerized trucks.
A network of 28 sorting centers (every state), 550 company branches, 400 express routes and 2500 feeder
routes, TCIEL serves 40,000 pickup and delivery points.
The company deals in a variety of parcels with weights ranging from 1 kg (apparels, cell phones, etc) to 40 kg
(consumer durables, automotive ancillaries, etc).
Majority of the revenues are derived from B2B services (95%) while the remaining 5% is contributed by B2C
services.
Source: Investor Presentation
5. B2B services of the company can be further classified as follows.
1. Surface Express: This is the core service offered by TCI express ltd to its B2B clients who include doorstep
pickup and delivery of consignment. Besides regular pick-up and delivery company offers various value-added
services like COD (cash on delivery), POD (Proof of Delivery), Octroi Clearance Service, DACC (delivery
against Consignee Copy), ODA (Out of Delivery area) service, SMS alert, Multi-modal service etc.
2. Reverse Express: Transportation of goods (defective, unsold, rented, for repairs, for recycling) from
location of end user to location of manufacturer in efficient and cost effective manner.
3. Domestic Air Express: Round the clock services for time sensitive deliveries of goods within 24 hours in
Metros and within 48 hours in mini metros and other A class cities. Sunday and Holiday services, Late Pick-up
and deliveries are some of the services in this categories.
4. International Air Express: Time sensitive movement of small packages (samples) and commercial
shipment to around 208 countries across the globe. Maximum weight of samples is 32 kg per sample and
services cover Airport-to-Airport, Door –to-Airport and Door-to-Door deliveries.
Source: Investor Presentation
B2C services of the company can be further classified as follows:
1. E-Commerce Express service: Offers in city distribution through GPS enabled fleet of Route vehicles for
on time delivery with value added services like COD ( Cash on Delivery),RTO (reverse Logistics), Online
tracking of shipment, Sunday and Holiday deliveries etc. Key services include bulk movement (Vendor to
warehouse, inter water house), warehouse to customer with cash collection etc.
2. Priority Express service: assured day definite, Door-to-Door delivery for shipments to metros (next
business day) and non-metro locations (NB+1 day) backed by money back guarantee at no extra cost.
6. BUSINESS
Business sourcing:
60% of business comes from large corporate clients where company participates in tendering process floated
by them. Performance within budgeted price is the key deciding factor for securing contract. Typical contract
duration is 12 months. Remaining 40% of business comes from MSME and unorganized players where
relationship holds the key. A significant chunk of this 40% revenue is repetitive in nature without any formal
contract between parties. In a typical year, company deals with close to 2,00,000 customers out of which
20,000 are repeat customers. Thus, in a given year, 60% revenue is won through competitive bidding, 20-25%
revenue comes from repeat customers while remaining 15-20% comes from new walk-in clients and Business
associates (who are drivers/ vehicle owners of pick-up trucks employed by the company).
Asset hiring cost:
Company follows asset light model where all the 3000+ trucks employed by it are taken on lease. Close to
1,500 vehicles running on long hauls (plying between sorting centers) are hired on 1 year lease and are paid
on per KM basis. Diesel price is a pass through.
Remaining 1,500 vehicles which connect the initial/end customer to sorting centre (short haul) are either
deployed on commission basis or per kg basis. Vehicles that pick-up parcel from customers and bring to
sorting centre are given commission which ranges between 5%-8% of the sales value. These drivers/ vehicle
owners are also called Business Associates (BA). Vehicles which deliver the parcel from sorting centers to end
customer are paid @ Rs 0.50/kg.
Diesel price impact on pricing:
Company’s pricing of its services is such that diesel cost accounts for 50% of direct costs and 38% of topline of
the company. Truckers rates are revised within 15 days of diesel price hike while company takes price hike
with customers with a lag of 30-45 days.The price hike reflects in the form of reduced discount rates to
customers with 12 month business contract. Repeat customers with whom company has no formal contract are
always at much higher rates (35%-40% premium to contract bound customers) and hence hardly any price
action is needed.
Payment terms:
Customers with whom company enters into formal contract are offered credit period of 45 days while for rest , it
is cash and carry. Truckers are paid on monthly basis by the company.
Infrastructure:
TCI Express has 550 own branches employing 2500+ staffs. Company picks up cargo from 3000 pick-up
points and makes delivers to 13000+ locations across India and in 208 countries across globe. It deploys 3000
trucks for this purpose.
Key Customers:
List of some of the blue chip clients of the company across sectors are as follows. The list is indicative and not
exhaustive.
Source: Investor Presentation
7. INVESTMENT RATIONALE
Risk management:
Company has followed risk mitigation strategies very wisely. Every long haul route is at least served by two
truck operators to avoid overdependence on Single one. This helps the company command good bargaining
power with its truckers. Similarly no single client accounts for more than 1% of total business of the company.
Further, in terms of sector exposure, company caters to diverse sectors ranging from Pharma and Auto to
Capital Goods and Retail. As a result of this practice, company’s revenue and profitability is growing in secular
manner and is free from volatility.
Margin enhancement by cost cutting:
Company is in the process of taking various cost cutting measures to enhance EBITDA margin. Directly
transporting pick-up consignment to sorting centers instead of current practice of taking to home branch first,
replacing of leased warehouses with company owned warehouses over next 4-5 years.
Reassuring third party logistics space:
3PL is the fastest growing segment of Indian Logistics sector with CAGR of 22.5% between FY13-FY16 and
industry estimates suggest that 3PL should grow at 21% CAGR between FY14-FY19. TCI Express Ltd, a
leading player in organized 3PL logistics with presence across four corners of the country and across product
line is a good play on high growth 3PL in India.
Increase in CapEx:
Company has planned an investment of 400 crore in coming 4 to 5 years. Majority of the capital investment
outlay of 400 crore involves replacement of all leased sorting/distribution (S&D) centers with the company
owned sorting centers. The S&D operations would reduce/eliminate errors, labor and cycle time while
increasing accuracy and improving service. These S&D centers would be multi-specialist, highly mechanized,
which would be capable of generating faster turnaround of parcels. TCIEL currently manages 28 S&D centers
with a total warehousing space of 1 million sq ft (msf). Out of these, 20 S&D centers, with coverage of 0.7 msf,
70% are leased. The remaining 0.3 msf with eight S&D centers are owned.
Onset of GST:
GST implementation will facilitate shift of business from unorganized players (Goods Transport Agents) to
organized players like TCI Express. Organized logistics service providers are subject to full service tax rate of
15% while unorganized Players (Goods transport Agents) enjoy 70% abatement in service tax. This differential
along with higher compliance cost makes organized Logistics players pricier by close to 30%. Besides,
customers doing under- invoicing prefer unorganized players as they do not insist on full compliance. A
significant chunk of the unorganized players in logistics sector will have to register themselves with Tax
authorities and fulfill compliance requirement removing compliance related arbitrage opportunities. This will
increase their operating cost as well which will reduce price differential with organized players. Further, with the
provision of input tax credit available under GST, customers will find it advantageous to make proper
declaration of value/ volume of goods. Hence, quality of service and Geographic reach of Operator rather than
pricing alone will be key deciding factor. This will provide tremendous boost to organized players like TCI
Express ltd.
=> Some of the other benefits are expected to be as follows:
- Idle time for truck fleet is expected to reduce 20% due to elimination/rationalization of check post between
states (more than 20 states have already removed check posts).
- Elimination of octroi is expected to reduce congestion and improve productivity for logistics industry for
distribution in large cities.
- Higher automation coupled with larger warehouses would result in improved infrastructure and economies of
scale.
8. Sorting centers to lead to improved efficiencies:
In FY17, TCIEL made changes in its distribution strategy. Earlier, the consignments used to arrive at the
consolidation hub unloaded, marked and numbered and then shifted to respective sorting centers for final
delivery. However, recent changes involve elimination of transportation to nearby branches and directly ship
consignments from its pick-up point to the nearest sorting centre and direct shipment to consumer. The
strategy has not only led to time saving but also resulted in a reduction of fixed overheads resulting in margin
improvement. The strategy was implemented in FY17 over eight to 10 metro cities. The strategy is further
expected to get extended to other cities in FY17-18. However, it would not be possible across all routes as
synergies could be derived only on high density routes.
RISKS:
- Logistics is a very competitive industry and pricing plays key role in business growth. In case company fails to
keep itself competitive on pricing front, it may find it difficult to grow the volume as projected. This may have
adverse impact on topline growth of the company.
- Diesel price is highly volatile and company’s inability to pass on the increased cost could lead to pressure on
profitability. This may lead to actual profitability falling short of projected one and this poses downside risk to
our targeted valuation.
To mitigate the cost TCI Express has added Diesel Fuel Surcharge (DFS) in its contract, both with its vendors
and customers.
- Companies starting their own logistics division like Amazon’s E-Kart will always be a concern for the logistics
company.
- Technology risk - Increasing competition from startups and tech giants implementing emerging technologies
Big Data analytics, driverless cars, 3D printing) and providing platform-based and dedicated delivery solutions.
IT risks relating to malfunction or disruption in the operation of the systems, or a security breach, could
adversely impact the company's ability to compete.
- Reputation risk - Risk to reputation/brand as a result of negative assessment or comments from stakeholders.
Capital Expenditure
Source: Investor Presentation
COMPETITORS
9. Source: ICICI
TCIEL could be characterized as a less than truckload player (LTL), which operates in a time sensitive cargo
segment. The segment competes with the likes of Gati ltd., BlueDart and VRL Logistics (LTL) in the listed
space.
However, in the unlisted space, it competes with the Indian operations of DHL and FedEx.
COMPANY/METRICS
MCap
(cr.) Price/Sales Cash Conversion (days) Debt/Equity
Interest
Coverage
ROA (avg. 5
yrs) %
Blue Dart 8818 3.24 7.56 0.64 8 22.78
Gati Limited 1083 0.63 58.24 0.87 2.69 6.17
TCI Express 2028 2.3 36 0.2 26.15 18.06 (1 yr)
COMPANY/METRICS P/BV EV/EBITDA P/E ROE % ROCE (avg. 5 yrs) % Price/Cash Flow
Blue Dart 14 31.95 66.56 28.14 49.54 62.22
Gati Limited 1.77 10.53 20.38 5.2 7.08 11.33
TCI Express 9.46 24.69 37.19 29.57 35.95 (1 yr) 29.22
Due to different business models, TCI Express can’t be compared to its peers.
With a vendor network of 3000+ containerized trucks, 550 branches and 28 sorting centers (mainly leased),
TCIEL operates on an asset-light business model. In contrast, VRL (trucks, warehouses) and BlueDart (flight
carriers) own and manage their assets.
Blue Dart is more into airlines and also caters low weight packages such as documents.
Gati Limited is a multi-service company providing services like rail transport and cold chain facilities unlike TCI
Express. .
10. SECTOR
The transport and Logistics sector is fundamental to the development of the country. Indian Logistics is
expected to grow at CAGR of 12.17% by 2020 driven by the growth in FMCG, retail, manufacturing and E-
Commerce sectors. India spends around 13% of its GDP on logistics and transportation as compared to less
than 8% spent by other developed countries.
The key drivers of this growth are infrastructure investment associated with ports, airports and other logistics
development plans, domestic demand growth and increasing trade.
Indian Logistics industry is fragmented and under developed. Logistics costs are generally higher due to poor
physical and communication infrastructure; high dwell time at ports; low level of containerization.
Trends:
- Onset of GST and E-Way Bills
- Investment in Infrastructure
- Infrastructure status of Logistics
=> GST
- Hub and Spoke:
Organizations will now be able to explore a different distribution model instead of the traditional carrying and
forwarding (C&F) distributor-based models. Growing demand for Larger Hubs / Regional Distribution Centre as
well as Smaller ‘Spoke’ warehouses.
- Consolidation:
Post GST, the focus would shift on efficiency rather than tax saving through smaller warehouses. Companies
to restructure their warehousing portfolio to bring in larger ‘supply - chain’ efficient warehouses, typically built to
their specific warehouse requirements.
- Quicker Supply:
State-border checkpoints for scrutiny and location based tax compliance, which accounts for almost 60% of a
truck’s transit time, can hugely reduce, thus facilitating quicker supply.
- Efficient and Larger Warehouses:
Efficient warehouse management is expected to boost the sector as the warehouses are expected to have that
‘economics of scale’ thus increasing Per Cubic Meter storage efficiency of warehouses.
- More Organized Logistics Players:
Existing organized warehousing developers can expect significant increase in demand. More organized
players are expected to enter the sector.
- Larger Investment:
Warehousing developers are investing in larger logistic parks and buying land at strategic locations.
- Reduced Cost to Customers:
Reduction in tax cascading may lead to lower cost of production and distribution which can be eventually
passed on to consumers.
- E-Way Bills:
It is a document required for intra-state movement of goods and transport companies stands responsible for
creation of it for each of their order. This added obligation hinders the smooth functioning of their operations
due to which many transporters have began shifting this task to the order company which isn’t welcomed by
the businesses, further leading to distorted relationships between the logistic companies and their vendor
companies.
=> Investment in Infrastructure
- Government increased allocation to infrastructure by more than Rs 1 lakh crore for financial year 2018-19.
- Allocation for the road sector has been increased to Rs 70,544 crore compared to Rs 60,671 crore in 2017-
18.
- For the transportation sector as a whole, including roads, rail and shipping, the government has provided Rs
1.34 lakh crore compared to Rs 2.4 lakh crore in 2017-18.
11. => Infrastructure Status
Source: JLL Indian Logistics report
- Infrastructure industries in comparison to typical manufacturing sector gets both longer maturity loans and
easier lending terms. Logistics companies will now also enjoy the option of refinancing. Moreover, the
infrastructure status will give them access to cheaper foreign currency funding through the external commercial
borrowing (ECB) route.
Logistics companies will be able to:
● Access larger amounts of funds as External Commercial Borrowings (ECB)
● Access longer-tenure funds from insurance companies and pension funds, and
● Be eligible to borrow from India Infrastructure Financing Company Limited (IIFCL)
- The logistics spend in India is almost 13% of the GDP, compared to well below 10% for the advanced
countries. This high logistics cost added to the cost of Indian goods makes them less competitive in domestic
and international markets. But with GST coming in, and the above-mentioned easier access to capital and
long-term borrowing, large format warehouses will soon crop up across the country. This will eventually bring
down the cost of logistics, which, in turn, will boost demand for Indian goods and further the Make in India
cause. The domino effect would also lead to job creation.
- Logistics infrastructure will include Multimodal Logistics Parks comprising Inland Container Depot (ICD) with
minimum investment of Rs 50 crore and minimum area of 10 acre, cold chain facilities having an investment of
at least Rs 15 crore and minimum area of 20,000 sq ft, and warehousing facilities with investment of a
minimum Rs 25 crore and over 100,000 sq ft area. Industry players expect this to attract a great deal of private
investment in the sector.
14. FINAL COMMENT
Given the focused approach coupled with aggressive capital outlay, higher return ratios (after Blue Dart), low
leverage ,asset light model of the company with no client contributing more than 1% in company’s revenues
and market leadership in surface bound express logistics, TCIEL is expected to continue to post industry
leading growth rates.
The business is expected to get benefitted by both increased sales and reduced expenses over next 4-5 years.
The change in strategy of bringing parcels from origin place directly to the nearby sorting center would save
the related overhead expense and time. CapEx in Sorting centers would make them more mechanical, multi-
specialist in handling the goods and also will be able to compile and sort parcels in bulk which would lead in
reducing labor cost, improve services by increasing accuracy and ensuring faster turnaround, thus, increasing
sales. Onset of GST, over the years, will shift a good chunk of unorganized players to organized market,
reduce idle truck time at check posts and also with the employment of hub & spoke model, company will be in
position to boost the sales in an organized and efficient manner.
These all factors collectively will make company’s financials healthier in years to come.
REFERENCES:
- Web based software Ace Analyzer
- Company’s financial reports
- Management interviews
- KPMG transport tracker report
- JLL Indian Logistics report
- PwC’s – The future of the logistics industry
Disclaimer:
I am not a SEBI registered Research Analyst. This report does not serve the purpose of recommendation.
Authored by Karan Agarwal
Karan.finance0111@yahoo.com