Group5 Prateek Mithun Aditya Dinesh Suresh Sunil Nandita

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Group5

Prateek
Mithun
Aditya
Dinesh
Suresh
Sunil
Nandita
 Gati ltd. Was incorprated on 25th April,1995 with its registered office at
Secunderabad.

 It is a leading domestic express cargo company with a pan-India


distribution network offering multi-modal connectivity (road, rail, air and
sea) and end-to-end logistics solutions.
Mr. K.L Chugh  The focus is on integrated logistics solutions. Gati's transport
infrastructure, IT systems, cutting - edge technology solutions and an
intensive knowledge of India allows it to tailor its products to meet
every customers' unique needs.

 Gati offers a wide range of options and does not waver in its focus on
quality, reliability and speed.
 Be the leader in Asia pacific and a globally preferred provider of
India-centric Supply Chain services and solutions.
 Delight the Customer with quality service by setting new trends
through innovation and technology.
 Be the most preferred organization for all it’s stakeholders.
 Be a responsible corporate citizen with unwavering commitment to
environmental protection and conservation.
 To be ethical, integrated and transparent in our leadership.
 To respect and treat with value the enquiries of others.
 To be caring and abundant in giving support and services to others.
 To balance the body and mind ,and ‘people serve people’ in good
spirit.
 In keeping with Indian culture and attitude,never say ‘no’ to service a
customer.
 To be a responsible corporate citizen and remain committed to the
cause conservation.
 Logistic:- Gati provides customised solutions by
integrating all the four stages of your business —
procurement, production, distribution, after
sales service and reverse logistics.
 Shipping:- Shipping division “GATI” coast to
coast engaged in costal shipping as well as to
Yangon (Myanmar) & Andaman & Nicobar Island.
 Fuel Stations:- Operates 5 fuel stations situated
at Bangolore, Belgaum, Indore, Shadnagar,
chhatar (karnataka). In the fuel station segment,
Gati traded in petroleum and lubricants, suppling
to several pumps in Karnataka, AP, MP on behalf
of Oil majors.
Gati's bouquet of value added services are designed to take care of
your business needs:-
 FOD (Freight-on-delivery): Option of paying at the time of
delivery.
 COD (Cash-on-delivery): Collection of cash against delivery from
your customer and remitting it to you online through e-banking.
 DOD (Draft/Cheque-on-delivery): Collection of draft/cheque on
your behalf at the time of delivery.
 Inbound Rate Agreement: Ensures hassle-free, convenient
supplies from your vendors. Also gives you the advantage of
dealing with one company at agreed rates.
 Consumer goods
 Engineering / electronics
 Industrial goods
 Healthcare / life sciences
 Computer and IT peripherals
 Retail
 Fashion and garments
 Automotives
 Tactical and confidential projects
 Gati is spread across 427 locations in India and has overseas offices in Sri
Lanka, Nepal , Hong Kong , Singapore, and China. The infrastructure consist
of a vast network of offices and franchises in India, it has five zonal offices, 61
express centers, 109 depots ,160 franchisees, 54 customer convenience centers,
20 surface transit centers ,19 air transit centers , 5 rail transit centers, 3827
extra service station and 27 modern warehouses spread out of 590 districts in
the country.

 It provide multi modal transportation include Road, Rail , Sea and Air and its
infrastructure facilities consist of rail transit centers ,surface transit centers
and air transit center across the country.

 The company aims to be one- stop service provider in logistics solutions ,


focusing on warehousing and infrastructure , distribution centers ,central
distribution center , Information technology and human resources .
 Gati Technology Systems is a leading Software Company in India. it is a
proactive organization providing complete and customized software solution,
Internet Technology Solution and content development services.
.

 Gati website was inaugurated in 2002 which aims at rendering better services
to customers through which they can download information, lodge
complaints outlines and track its status, check price and transit time for
shipment of any Gati’s service.this implementation helped Gati to work pro-
actively and provide high level of customer satisfaction through reverse flow
of information through the website e-mail, SMS and toll free no.
 Gati employed a workforce of 2,364 supported by 512 trainees from Gati learning
school. Gati brought fourth a higher level of critical appreciation of its performance
management system and linked it to business performance. It levered performance
linked award (PLA) as an impetus to gauge and reward performance.

 The re-visit of the promotion policy opened a transparent career development map for
all employees of Gati especially those on the ‘fast track'. the revised promotion policy –
‘branded talent for tomorrow’ was based on careful diagnosis of the company’s
operational dynamics and enabled high performance to get on a ‘fast track ‘ growth
route and reach their deserving responsibility levels through special assessment
centers .

 Employees were informed of their strength and weaknesses at development centers and
advised on suitable means to develop themselves. the company attached great
importance to equip every employee and business partner with the right functional
competencies in their job .
 Gati certified for design, marketing and providing cargo management
services and logistics solution . Gati established modern state-of-art
warehouses at Gurgaon, Ludhiana, Jaipu r,Indore, Kolkata and
Pondicherry with multi-level stacking features for effectively space
utilization. Equipped with stackers ,forklifts ,cage lifts etc , they also
offers several benefits and services like online inventory control and
monitoring , flexible hiring options and billing/data collection.
 In Sept. 2004 Gati entered into a special tie-up with India airlines and
launched Gati gold and Gati silver for speedy air delivery of time-
sensitive consignments at several major airports in India. this was a
door-to-door pick – up and delivery for sensitive sub-load cargo. the
product provide a wide reach through multi-modal connectivity.
 It offers value-added services such as flexible delivery options ,door
pick-up and delivery , online tracking and toll-free call number.
Besides this it is more cost-effective in comparison to other services.
 Gati marketing strategy aimed at attracting new customer and retaining
old ones. The clients of Gati included Hitachi , Pantaloon, Ford and
Ranbaxy. A series of activities were involved to serve the customers and
make them long term clients.
The dynamic market is constantly evolving and customers expectations
were on rise . Gati’s priority is to work toward personalized and
innovative services in order to build an everlasting relationship with
customers.

 The company took several internal and external initiatives in this regard
including changes in people and process. Management believes that the
foundation of any successful business is only as strong as the degree of
customer satisfaction .
Gati made it a primary responsibility to understand customers
thoroughly and delight them in the best manner possible
 Gati provides customised solutions by integrating all
the four stages of your business — procurement,
production, distribution, after sales service and reverse
logistics.
 Gati offers its services as a 3PL or a third party logistics
provider. A 3PL provider allows a company to-
 Concentrate on core competencies
 Create greater competitive flexibility and release working
capital
 Get lean and agile
 Exploit the better know - how and scale efficiencies of
logistics companies
 In the express industry space was a perishable Item. The
limitation with regard to availability of space was the foremost
challenge faced by the industry.
 Direct competition from unorganized sector player and freight
forwarders operating on lower profit margin was another
challenge faced by the industry where in a collective approach
could bing back the collective services.
 Due to liberalization of Indian economy and integration of
International trade increases customer requirement and sacling up
of operation lead to heavy investment by the express industry in
infrastructure setup, hub and new technology.
 This sector comprise national and international express
service with fully equipped infrastructure and other value
added services.
 The last service provider were technology driven
companies with major emphasis on customer service and
speed.
 With the development of Just in time and E-commerce
there was a sizeable business opportunity for web-enabled
services: Convenience, Reliability and Speed were the
growth drivers.
 Tracking services were offered by most of the organized
sector player.
 The organized sector was mostly into the package segment
of the cargo management business.
 The semi-organized sector comprised players operating
within a limited geographical area.
 Such companies generally had their own network of
branches and franchises in the region in which they
operated.
 However, Such companies did not have their own
distribution network, and relied on the network of other
similar companies in various location or acted as a
wholesaler to organize sector companies.
 The semi-organized and unorganized players were mainly
characterized by high volume business and were operated
on price advantages.
 Un-organised sector comprised companies, which had
restricted operation within the boundaries of a particular
city( intra-city couriers).
 Such companies were found in metropolitan and urban cities
and had one or more branches in those cities.
 The delivery schedules were based on the urgency of the
consignments.
 Operated on economies of scale where large companies
catered to the higher business volume.
 This sector thrived on price and was unable to keep pace
with the market in terms of reliability and timeliness.
 Gati Government School, Hyderabad, Andhra
Pradesh.
 Tsunami relief fund.
 MC High School, Nagore, Tamil Nadu
COMPANY Company Symbol
 Gati Ltd. GATI LTD
 Blue Dart Express Ltd. BLUEDA
 Corporate Couriers & Cargo Ltd. CORCOU
 Elbee Services Ltd. ELBSER
 Patel Onboard Couriers Ltd. PATONB
 Skypak Service Specialist Ltd. SKYSER
 Dominant player in the surface cargo segment in India, which
accounts for more than 55% of the total volume of cargo moved.
 Entry into the coveted cold-chain logistics business through the
acquisition of Kausar India, which has a fleet of 99 refrigerated
vehicles.
 JV pact with Air India Cargo involving leasing up to five freighter
aircraft in FY08. The company aims togain 11% market share in the
Indian domestic air cargo industry by December 2008 and 20% by
June 2009.
 Agreement with Indian Airlines to develop a joint product called IC -
Zipp to leverage the growth in theretail courier market. This product
will cover the high-value courier segment and the company expects it
tocontribute towards business growth both nationally and
internationally.
Weakness Threat
 Dominance of Blue Dart  A rise in fuel charges
in the domestic air cargo could have an adverse
industry. We expect Gati impact on margins,
to face strong which are already low for
competition from Blue the company.
Dart in the domestic air  An economic slowdown
cargo business. could impact the logistics
 Freight expenses account industry as a whole.
for a majority of Gati's  Significant investments
operating expenses. A involved in the setting up
further increase in Gati's of warehouses and
freight expenses, with an building of vessels -
increase in fuel costs, capital-intensive
could potentially lead to industry.
further contraction in
margins.
 Strong macroeconomic growth, robust growth in trade driving the
growth of the Indian express industry.The industry was valued at Rs71
bn in 2005-06 and has grown in the range of 25%-30% over the past 3-4
years. We expect the industry to register a similar growth rate over the
next few years.

 Improvement in the logistics infrastructure in the country - the dedicated


rail freight corridor, modernization of ports, and improvement in road
infrastructure are set to give a boost to intra-state and interstate freight
movement..
 Logistic: Growth of 22.47%.
 Shipping: This segment’s growth is 11%.
 Fuel station: Growth by 18% where as Rising
fuel price effected growth by 4%.
 Gati turnover was 70% from logistic, 7% from
shipping and 23% from fuel station divisions.
 Gati limited has hybrid strategy of differentiation and
cost-leadership.
 Strengthening the market standing, Brand Positioning,
Build on Core Competencies and continue to enjoy the
loyalty of customer results in steady growth and value
creation.
 To position the company to focus on IT, Process
Improvement, Cost management and establishment of
state of art warehouse.
 It proactively re-engineered its warehousing
infrastructure and made its operation more
mechanized, thereby reducing operational cost.
 GATI can be classified based on their general
pricing strategy. GATI must decide whether their
approach is to use price as a competitive advantage or
to seek competitive advantage in non-price ways.

 Discount Pricing –
 Competitive Pricing –
 Full Price Pricing

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