Profit growth slows to 30% at India’s Blue Dart Express
DHL’s Indian express subsidiary Blue Dart Express achieved a 30% increase in profits and operational income in 2011, compared to the calendar year 2010.
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DHL's Blue Dart launches "carbon neutral" shipping in India
DHL and its Indian express courier subsidiary Blue Dart Express have launched the country’s first end-to-end “carbon neutral” service for international and domestic shipments.
Read MoreIndian carriers get ready to launch cargo flights abroad
With competition hotting up from big-time players such as FedEx and UPS as well as the established international cargo airlines, two of India’s top express players have chalked out plans to go overseas.
Over the past few years, the number of cargo carriers has gone up significantly. From the lone Blue Dart, the only Indian cargo carrier, there are today at least half a dozen more players.
Blue Dart Aviation, a subsidiary of express cargo carrier Blue Dart Express, has drafted a plan to start flying abroad. The plan, said Tulsi Mirchandaney, formerly senior vice-president, marketing and projects, and now managing director of Blue Dart Aviation, is in
the initial stage.
Mirchandaney should know because she was not only instrumental in marketing air cargo products but also involved in route planning and space allocation.
The decision to fly abroad has been prompted by the under-utilisation of Blue Dart’s fleet. Blue Dart has seven planes – four Boeing 737s and three Boeing 757s – that fly around the country for only eight hours at night.
In 2005, DHL Express completed the acquisition of 81.03 per cent of the equity capital of Blue Dart Express. Under the deal, Blue Dart continues to operate as an independent brand and provides a complete spectrum of domestic services through synergies with DHL.
The company is currently in talks with its parent DHL to find out ways in which the two could work together and ensure that Blue Dart planes can be used for international operations.
While Blue Dart firms up its plan, GATI, an express cargo delivery major with experience in distribution and supply chain management solutions, has started its foreign air cargo operations with Air India.
GATI’s managing director and chief executive officer Mahendra Agarwal said that his company had an agreement with Air India to take cargo overseas. This would be a follow-up to GATI’s tie-up late last year with the national carrier.
According to that tie-up, three of AI’s Boeing 727-200 freighters operate with the GATI logo within the country.
Keen to establish its presence globally, GATI has set up offices in China, Japan, Dubai, Hong Kong Thailand, Nepal and Sri Lanka and has plans to foray into other markets. The express major’s revenues have grown from USD 1 46 million to USD 7.04 million over the past three years.
Read MoreDHL to step up India investment
DHL Express plans a major expansion in India to take advantage of the growth and penetration of retail business in the country, by increasing its exclusive outlets and strengthening road network.
The company is set to open 1,000 retail points across the country by 2010, up from the 150 centres that currently offer its products. DHL, which owns an 81.03% stake in Mumbai-based air express and transportation company Blue Dart Express Ltd, will also start at least 100 transportation hubs to help link the company to smaller towns and non-metro cities and towns.
The Indian logistics market is expected to reach USD 122 billion by 2015 from USD 45 billion today, according to market estimates. Most firms would like to capitalize on this growth potential by offering complete solutions, but such an effort would be difficult as they would need sizeable fleet and investment, said a Mumbai-based transport analyst, who didn’t wish to be identified.
The strengthening of road network would include creating small and large cargo collection centres and adding more vehicles. DHL serves 17,500-plus cities and towns through Blue Dart. In February 2007, it had announced a restructuring of business in India and South Asia.
Read MoreBlue Dart sales up by 21 pct
Blue Dart Express announced its annual result for the year ended December 31, 2007 at its board meeting held in Mumbai. The Company posted Rs 699.3 billion crore profit after tax for the year ended December 31, 2007, up by 39 pct from the corresponding period of the previous year. Income from operations for the year ended December 31, 2007 was RS 8,087.2 billion up by 21.06 pct from the corresponding period of the previous year. Speaking on the occasion Anil Khanna, Managing Director, Blue Dart Express Ltd said, “Our results are a validation of our customer’s faith in us and of our commitment to serve their business. We are proud to be positioned as the only service provider with a distinctive capability to offer the entire gamut of express distribution solutions. We have seen consistent high results in the past and expect the trend to continue this year as well.” “The launch of our new fortified ground express product – Dart Surfaceline last year, is a strong step towards achieving our aim of being the first choice for all our customers; however our focus from our core air express product remains unwavered. We aim to continue setting standards in the Indian express industry and facilitating trade and commerce for a greater India.” 1 USD = 39.6650 INR
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