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Key Personnel Qualification
Key Personnel Qualification
In FY10, the operations in the express distribution and supply chain segment contributed
~77% to revenues, coast-to-coast shipping contributed ~10%, fuel stations contributed ~12%
and others contributed ~1% . Exports contributed to ~5% of FY10 revenues.
Some of the clients of the company are Hitachi, Sony, LG, Onida, Titan, Nokia, NCR, Siemens,
Tata, Bayer, Zenith, etc.
Gati has offices in China, Singapore, Bhutan, Dubai, Hong Kong,Thailand, Nepal and
Malaysia.
The company is also planning to open operations in Vietnam to expand its footprint in the
Asia-Pacific region. Gati has entered into a memorandum of understanding with Express
International, Bangladesh and is in talks with companies in Sri Lanka for a similar
partnership.
The company plans to set up warehouses at Patna, Dehradun, Daman, Panvel and Nagpur.
During FY10, Gati implemented a high-end vehicle tracking system (VTS) in all the company’
express route and service vehicles. The company has also set up video conference facility at
all its express distribution centres, zonal headquarters and major administrative offices to
strengthen the communication between different cities across different locations. A
Network Monitoring Centre was established to monitor the fleet movement using VTS
technology, offering services of excellent quality to the customers.
Key Qualification
personnel
Mahendra He established Gati in 1989 with an aim to
Agarwal, redefine the logistics industry. He holds an
Founder & Engineering Degree from Bangalore University,
CEO of Gati and a Masters in Business Administration from
Ltd Austin, USA.
is the. – India’s leading Express Distribution and Supply Chain Solutions company.
During
the year under review, the Company’s EDSC division achieved a revenue of Rs. 652 crores as
against Rs. 525 crores in the previous year recording a
growth of 24% and Profit before tax & interest of Rs. 71 crores as against Rs. 32 crores in the
previous year showing an improvement of 122%.
Future Prospects:
In the very competitive world, Industry is changing globally, demanding change and new
solutions from the Logistics Industry. In response your company is changing. Global re-
alignment to market needs and customer demands is necessary. Our business has to move
down the line from B2B to now B2C
In the next five years, your company plans to launch a strong network on E-Commerce trade
so Gati becomes a preferential provider of ground services. On the services side, we plan to
launch a slew of new service offerings which will put your company in the premium
segment. The launch of your company’s new division, Redsun, will now allow us to offer a
full range of supply chain solutions and technologies which will differentiate us in the
market place from being a pure play Distribution company to a full fledged Supply Chain
Solutions and knowledge company, attracting new customers & creating a new tomorrow.
The global logistics market is valued at US $4 trillion with an 8% growth over the previous
year. The Indian logistics industry is estimated at 125 billion US$, of which about 90%
belongs to the unorganized sector. For the remaining 10% of the organized market, the
growth rate is pegged at 20-25% per year. Logistics in the Indian context would mean
providing services such as transportation, warehousing, distribution, order & inventory
management. Logistics costs in India are about 13-14% of GDP, as against 8.7% in the US,
11% in Europe, 12% in Japan and 18% in China. A further reduction of 1% in logistics cost
could result in huge savings. Critically examining logistics cost drivers will enable Indian firms
to gain competitive edge in global market place. The current market size for the trucking
logistics is 50 billion dollars with around 2.5-3 million trucks moving within the country per
day. Transporters with a fleet less than or equal to five trucks constitute a share of around
80% of the total revenue in 2009-10 with the scenario not being very different from 2008-
09. About 2 trillion US$ of capital is being planned for the industry. The overall logistics
scenario looks quite encouraging with the road freight industry witnessing a year on year
growth rate of 20%. Similarly the rail & air freight industry grew by 15% in 2009-10.
Meanwhile, the sea freight industry growth rate has been 18% and the express logistics &
supply chain logistics promising an enterprising growth of 35%.
Projects such as development of extensive road network with hinterland connectivity, rapid
implementation of the dedicated rail freight corridors, capacity expansion beyond major
ports sector and establishment of modern cargo handling facilities at airports are some of
the challenges before the growth of the domestic logistics industry.
Gati plans to strengthen the IT support by launching initiatives such as third party software,
IT help desks, paperless office concepts and real time data management systems to
eliminate redundancies to some extent.
The future strategies are focused on improving retail presence, introducing differential
pricing, creating cold chain warehouses, targeting segments as pharma, automobiles,
electronics, high value/sensitive shipments, strengthening parcel trains on Delhi-Guwahati-
Mumbai-Chennai region, focusing on intra city and intra zone reach, enhancing e-commerce
presence & providing customers solutions enabling them to maximize their supply chain.
Air India and Gati have entered into a strategic tie up to bring to you the retail courier
service( package delivery interzone/intrazone delivery -119 locations and city-2200 pincodes
for corporate and sme business)
services
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Key Personnel Details