Indian operator Gati launches strategy plan
Indian express company Gati has announced a new “path-breaking and comprehensive” expansion strategy. The “Go to Market” strategy aims to transform the operator into a half a billion dollar company by 2014.
Gati, the Indian partner for GLS, will focus growth around Express Distribution and Supply Chain Solutions.
The company also highlighted an ambition to grow its business on the international stage, via partnerships and acquisitions.
Mahendra Agarwal, managing director & CEO at Gati, said: “Our strategy is clearly on a focused growth for the two major areas we see as the future of Gati – Express Distribution and Supply Chain (Ambient and Cold Chain) Solutions. As such, these are the two verticals in which Gati is now being restructured.
“Shipping is an area which is more cyclical and needs a different kind of strategy for its sustained growth. We have not been able to give it the much needed attention and investments in the shipping haven’t been made due to the turbulent market conditions which prevailed for most of last year.
“We have therefore made the decision to de-merge the Shipping Division into a wholly owned Subsidiary. The new subsidiary will be called “GatiShips”. Strategically, this now allows us to focus our internal investment efforts on the core segments of Express Distribution and Supply Chain, with a special focus on the Cold Chain.
“With our strategy to build upon our core strengths of Express Distribution towards Solutions and Knowledge offerings to our customers, Gati will form the new Division for Supply Chain & Cold Chain. Under the brand Gati RedSun, the new Division will offer both Cold & Ambient Supply chain solutions. This move will also allow us to bring into alignment our existing subsidiary and the Kausar Brand as a product offering under the new Division.
“Our strategy of being a truly global company is bearing strong results as our International business has shown the strongest growth this quarter. Our focus is on India, while we ramp up our presence in the APAC region. Today, through our International Division we are present in Thailand, Singapore, China, Dubai & Hong-Kong. We recently opened our offices Malaysia and shall soon be doing the same in two more countries this half. Our SAARC business continues to show strong growth and we are looking at offering our Indian customers the benefit of a seamless Asia Pacific wide Distribution and Freight Forwarding solutions.”
“I am quite open to acquisitions or partnerships in the APAC region as this allows us to foster an accelerated growth strategy. The team is working on this and we shall make periodic announcements on this.” said Agarwal.
“The Logistics sector will be a major beneficiary with the introduction of GST. We expect the distribution model to change and get realigned to the way and manner the procurement will be done that involves redesign of supply chain structure to make it simpler and more efficient. The Model suggests different rates i.e 16% for services and 20% for goods which we recommend should be one. Unified GST and not central GST and State GST rates would have been a simpler option.”
“Our Go to Market strategy, will clearly differentiate us from our competitors and shall be focused on creating value for our customers as well as our shareholders, taking our brand closer to the market and the consumer, creating platforms of IT and Solutions for better engagements and longer contracts with our customers and finally take us to an unassailable market leadership position,” concluded Agarwal.
Gati revealed the plans for growth as it published financial results for the year ending June 30, 2010. Company revenue grew 31.6% during Q4, compared to the same period for last year. Revenue grew 19.2% for the year. Gati said it also had out performed on the EBITDA level by delivering a solid 39.9% growth over last year.
