Tag: Gati

Indian private couriers not to lower rates

Posted by | Aug 12, 2007 | |

Even after a major tariff revision by the department of posts (DoP) in the below 500gm segment of courier, private players are in no mood to lower rates.

Eyeing a larger share of the Rs 50,000 million business in the below 500 gm segment, DoP reduced tariff in the sub-50 gm segment of the local speed post by 40 pct last month from Rs 20 to Rs 12. The new rate is inclusive of service tax and education cess.

While courier majors like XPS charge Rs 30 for the below 250 gm segment and Rs 50 for the sub-500 gm segment in the same region, department of post charges vary from Rs 12 and Rs 20.

XPS charges Rs 50 for sub 250gm and Rs 75 for below 500gm for the rest of the country. Speed Post charges for courier, other than local; vary from Rs 25 to Rs 80.

Mr.K Prabhakar, president & CEO of XPS, a multimodal express logistics company, said, “We serve a niche customer segment which is driven by service quality rather than price. We don’t see any impact of the decision taken by the DoP.”

According to experts, while majors like Gati and XPS have their niche market, the decision would adversely effect local, unorganized players, who operate on factors such as price rather than service delivery.

Size of the organized sector in the Rs 100,000-million courier industry is about Rs 7,100 crore. Almost 65- 70 pct of the business for the courier industry comes rom the below 300 gm segment. A mere less than 30 pct business comes from the above 500 gm segment.

Gati recently launched value-added services like Café d’eliver and IC -Zip to provide multi-modal solutions to customers.

1 GBP = 81.4266 INR

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Gati opens Bangalore warehouse for express goods

Posted by | Jun 26, 2007 | |

The express distribution and supply chain company Gati plans to invest USD 100 million in the next three years. It plans to set up 19 express distribution centres (EDC) with an addition of one million sq ft area across India by 2009.

Gati has launched its mechantronic EDC in Peenya, an industrial town in Bangalore. Spread over an area of three acres, the mechantronic EDC provides a total storage capacity of 2,50,000 sq ft. The mechantronic EDC will basically offer multiple levels of storage, sorting, pick pack facility with racking and security systems, material handling equipment and an online warehouse management system for managing customer’s inventory. Meanwhile, the company has acquired land in Nagpur for setting up its central distribution centre. It is targeting a market share of 15% by 2009.

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Indian mulls tie up with India Post, Gati

Posted by | Feb 6, 2007 | |

State-owned carrier Indian on Tuesday said it is considering partnership with India Post and GATI for its proposed cargo service expected to be launched by the middle of this year.

“We are planning to start the air cargo service by the middle of this year, which is likely to be known as ‘Indian Cargo,” Indian Chairman and Managing Director Vishvapati Trivedi said on Tuesday.

He said the carrier is considering partnership with the country’s biggest postal service India Post and international cargo carrier GATI for the venture. Trivedi, however, added plans were in the process of being finalised at the moment, though the carrier would aim at selling cargo space in advance.

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Indian, Chinese express firms plan cooperation

Posted by | Jan 16, 2007 | |

Two of the leading locally-owned express transport groups in India and China plan to cooperate to profit from soaring trade between the two fast-growing Asian economies. Bilateral trade between China and India grew 83% to USD18 billion in 2006 and is expected to reach USD40 billion by 2010.

Gati, one of the largest road express operators in India, and China Railway Express International Logistics (CREIL) have signed a memorandum of understanding covering cooperation in courier services, freight forwarding, ocean freight and logistics.

Under the agreement, CREIL and Gati will be responsible for all infrastructure arrangements and transportation of shipments in China and India, respectively. The two firms are reportedly looking into creating a direct road landbridge between India and China through the Himalayas to transport shipments as well as using air and sea connections.

“This arrangement will enable the two companies to complement each other’s strength and service the large base of customers in India and China,” said Mahendra Agarwal, CEO and MD, Gati. The Indian company covers 594 of India’s 602 districts while CREIL, a unit of China Railways, covers 500 cities in the 31 Chinese provinces.

Hyderabad-based Gati has embarked on a major international growth strategy over the last year which is designed to transform it from a domestically-focused company into an international player. CREIL mostly uses the China Railway network for rail-based freight transport but also has a fleet of over 3,500 delivery trucks for nationwide distribution.

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