Exports, new services help TNT sustain growth rate
With strong market support from Europe and less dependence on the US, which has been slowing under a spell of dismal economic growth, TNT India has managed to maintain its growth rate at more than double the industry average of 10 to 12 per cent.
Its 25 per cent growth rate has largely come from a mix of traditional products such as textiles for express distribution and innovative products like ‘Scholar Pak’ tailor-made for students seeking admissions in foreign educational institutions.
‘Scholar Pak’ is a special product developed for students to deliver applications to foreign universities safely and on time. It became so popular that TNT has built up a huge volume giving the company a new revenue stream.
TNT, a subsidiary of the multinational TPG N.V., has branched off into logistics business to leverage its worldwide experience in the line and to tap the rich potential from India, said Mr Sanjiv Kathuria, Head (Sales, Marketing and Customer Service ), TNT India.
Talking to Business Line, he said that though the slower economic growth had its impact on the express courier and logistics companies, a slight upturn in exports and the company’s innovative service packages have helped it overcome any severe impact on its business.
“Our biggest strength has been our exports to Europe and with a strong euro, we have been able to sustain our strong growth,” Mr Kathuria said.
He said adopting a strategic decision to target only key customers and not going in for mass market, TNT hoped to make up for the late entry in the logistics business. Declining to name the company, he said it has bagged business from a home appliances company for its inbound logistics management and distribution of their products.
On the proposed regulatory measures being brought through an amendment to the Indian Post Office Act, Mr Kathuria said the industry has expressed reservations over the provisions such as registration or licensing of the express companies with the Government and other stipulations.
The industry felt that the happy co-existence of both the postal services and the express courier service could be continued without any supervisor control, he said. Both deal with different segments of business with the express courier companies handling time-sensitive parcels or documents for which customers are willing to pay a higher price.
