Tag: India

Gati expands but profits drop

Posted by | May 20, 2008 | |

Leading Indian road express trucking company Gati recorded a turnover increase of 5.4pct but a 52.6 pct drop in net profit for the first quarter of 2008 due to rising costs. It has also introduced a new air express service and established Singapore as its regional headquarters.

The company’s turnover grew 5.4pct to Rs 1.47bn (EUR 22.1 million) during January-March 2008. The net profit, however, fell by 52.6pct to Rs 32.2 million (EUR 0.5 million) due to a large increase in operating costs.

Separately, the company has launched a new service “Gati Air Express” offering next day delivery to around 30 locations nationwide and next day before noon delivery across nine local locations to meet customer demands. The company has established a fleet of dedicated freighters and multimodal network to ensure that shipments arrive on time providing seamless connectivity across air, road, ocean and rail.

Meanwhile, Gati has chosen Singapore to become the company’s regional headquarters profiting from the country’s strategic location to expand its business activities into the fast-growing Asia region and beyond and thus strengthen its international network.

Today, Gati has offices in China, Singapore, Japan, Dubai, Hong Kong Thailand, Nepal and Sri Lanka and plans to foray into other markets. Gati International’s revenues have grown from SGD 2.0 Million (EUR 937,116) to SGD 9.6 Million (EUR 4.5 million) over the last 3 years.

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DHL/Blue Dart aviation to start direct services on Kolkata-Dhaka route news

Posted by | May 15, 2008 | |

DHL Express (India) Pvt Ltd, in association with Blue Dart Aviation, is planning a direct link between Kolkata and Dhaka in a bid to compete with the unorganised express and logistics sector in SARRC countries. The new service is likely to become operational in approximately two months time.

The new route will reduce time and costs for DHL, for earlier the cargo would travel to Dhaka from Kolkata, via Singapore.

“Blue Dart Aviation would run a direct flight to Dhaka in two months time and this would help bringing down our cost by at least 20 per cent in addition to the transit time,” said Craig Grossgart, vice president, DHL Express (India) Pvt Ltd.

According to the company, the cost benefits would be passed on to the customers enabling a lower product cost. “Earlier we couldn’t compete with the unorganised nature of the sector in this part, but now we can compete with anybody, as the pricing would be more competitive,” Grossgart said.

Eventually, the company plans to venture into other SAARC nations, particularly Pakistan and Sri Lanka.

The new scheme is undergoing pilot tests and may be launched soon. Keeping these plans in mind the company has inaugurated a 16000 sq ft, new state-of art facility at Kolkata.

Meanwhile, Blue Dart will add one more Boeing 757 cargo aircraft to its fleet by the end of the year. Currently the company operates a fleet of seven aircraft, of which three are Boeing 737 and the other two Boeing 757s.

DHL Express holds a 81 per cent stake in the Chennai-based air cargo company.

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UPS arm in talks to buy AFL for Rs 3,000 million

Posted by | May 9, 2008 | |

UPS Jetair Express, domestic arm of the US-based logistics major United Parcel Services (UPS), is in talks to acquire Mumbai-based logistics company Air Freight (AFL).

According to sources, both parties have been engaged in discussions over the last few months and the deal is expected to be valued at around Rs 3,000 million.

In the wake of the above development, AFL Logistics CEO VV Rao has resigned. Sources believe that Mr Rao did not see any future role in the company considering that he was strategically involved in setting up the network of AFL Logistics, which has been successfully concluded.

AFL denied that it is talks with UPS Jetair Express. “As for Mr Rao moving on, it has been his decision and as an organisation to which he has contributed tremendously in propelling it forward, we respect his choice,” said an AFL spokesperson. Mr Rao could not be reached for his comments.

UPS is looking at acquiring both the existing divisions of AFL; the third party logistics (3PL) arm, AFL Logistics and the express courier arm, AFL Wiz. According to sources, the FY 07’ turnover of both the entities is close to Rs 1,500 million and Rs 300 million, respectively, although, both are loss-making companies.

The figures could not be confirmed as AFL is not a public-listed company. UPS, though, denies that it is in talks to acquire AFL. “No, we have a strategic sales alliance with AFL,” said a UPS Jetair Express spokesperson.

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DHL opens warehouse at Devanahalli airport (India)

Posted by | May 7, 2008 | |

DHL inaugurated its 1,255 sq. m. bonded warehouse at the new airport at Devanahalli. The facility at the cargo terminal will be operated by DHL Global Forwarding. DHL is fully owned by Deutsche Post World Net. The company has leased bonded space from the cargo terminal managed by Air India-SATS. The facility includes an airfreight office and employs 50 personnel.

Tony Widmer, Head of Air Freight, DHL Global Forwarding, said the company had a 24 per cent share of the market for goods flowing through the existing HAL airport in Bangalore. He expects the company to grow by about 20 per cent in the current year.

Madhav Thapar, Sub-Regional Air Freight Director, DHL Global Forwarding, said the facility would cater to the needs of exporters and importers in South Indian States. These States, he said, accounted for “50 per cent of the company’s.

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Capgemini and ProLogis launch North American case study report on the supply chain implications from manufacturing offshoring to China and India

Posted by | May 6, 2008 | |

The quest to produce or provide a product at the lowest possible price, while simultaneously maintaining product quality and integrity, has driven many North American enterprises overseas, particularly to Asia. While outsourcing overseas is not a new phenomenon, it has now become possible to analyze and qualify the processes that have made these offshore ventures successful and profitable. This study aims to identify the specific impacts to the physical distribution supply chain of North American businesses when outsourcing to China and India. By interviewing high-level executives from North American companies currently operating in China and/or India, this document provides a “lessons learned” guide focusing on the current state of operations, risk mitigation and predictions for future developments.

Outsourcing manufacturing to China to reduce costs in the supply chain is by no means a new development. In fact, there are companies in North America that have been successfully offshoring to China for as long as 40 years. Their unique challenges have evolved as the capabilities within China have matured. By comparison, the outsourcing of manufacturing to India is relatively new, gaining a foothold within the past seven years. While India has become a master in the area of information technology outsourcing, the supply chain processes related to manufacturing outsourcing continue to be a challenge and obstacle for many North American companies.

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