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Gati Sees 15 per cent Growth Velocity in Near Future

Published: 28th May 2015 06:03 AM  |   Last Updated: 28th May 2015 06:03 AM   |  A+A-

HYDERABAD: City-based Gati Ltd was one of the pioneers of express distribution and supply chain solutions services in the country.

Founded in 1989, Gati, which in Sanskrit means speed with direction, transformed the logistics industry with its initiatives that paved the way for organized players.

“The industry was fragmented and unorganised at that point of time (1989) and we recognized the customer need for time-sensitive deliveries,” recalled Sanjeev Jain, Director, Finance, Gati Ltd.

Growth Velocity.jpgOriginally, Gati, was a division of Transport Corporation of India (TCI) and was started as a door-to-door cargo company. However, Mahendra Agarwal, Founder & CEO, Gati, wanted to rebuild TCI based on processes, systems and manage it professionally and in 1994, Gati separated from TCI, though the actual legal separation happened in 1996. Then, Gati had revenues of `18 crore. Focusing on volume business, it quickly made the transition from small cargo services to cargo management. Since then, there has been no looking back and it evolved into a `1,500-crore company, operates a fleet of over 5,000 vehicles and collaborates with 3,100 business partners. Currently, it has presence in 762 districts, covering nearly 99 per cent districts across the country and claims to be one of the largest multi-model express networks in India. It also established market presence in the Asia-Pacific region and SAARC countries, runs offices in China, Singapore, HongKong, Thailand, Nepal and has plans to foray into other markets.

“We believe that our best-in-class technology platform enables us to enhance profitability, optimise decision-making and create streamlined processes for our customers. Being an early adopter of technology has certainly given us the competitive edge,” Jain said.

The company has several firsts - first to print its delivery date on the docket and offer money-back guarantee by accepting payment after producing proof of delivery, which later became an industry norm or introducing the first toll-free number in the Indian logistics segment, first 3PL service provider, first logistics firm to get ISO 9001 certification etc.

“We were the first to introduce an ERP platform within the logitstics space in India, which is a critical differentiator for us,” Jain said, adding, “Wide and deep network supported by robust IT infrastructure are our key strengths for our leadership position in the industry.”

The 25-year-old company had its share of challenges to develop and maintan a pan-India network with a sustainable business model in its initial years. “But we have grown from strength to strength and today we deliver over 6 million packages every month,” said Sanjeev.

Going further, the robust GDP growth, implementation of GST and ‘Make in India,’ campaign are expected to provide impetus to logistics firms. “Changing demographics and consumption patterns in India will drive e-commerce and cold chains services,” he said.

According to him, the company’s e-commerce logistics vertical will grow over 100 per cent next year. “Our overall growth is expected to be over 15 per cent in line with our historical growth trend,” he said.



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