36923677 Copy of Gati Limited

8/8/2019 36923677 Copy of Gati Limited

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Group5

Prateek

Mithun

Aditya

Dinesh

Suresh

Sunil

Nandita


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Gati ltd. Was incorprated on 25thApril,1995 with its registered office atSecunderabad.

It is a leading domestic express cargo company with a pan-Indiadistribution network offering multi-modal connectivity (road, rail, air andsea) and end-to-end logistics solutions.

The focus is on integrated logistics solutions. Gati's transportinfrastructure, IT systems, cutting - edge technology solutions and anintensive knowledge of India allows it to tailor its products to meet

every customers' unique needs.

Gati offers a wide range of options and does not waver in its focus onquality, reliability and speed.

Mr. K.L C g


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Be the leader in Asia pacific and a globally preferred provider of

India-centric Supply Chain services and solutions.

Delight the Customer with quality service by setting new trendsthrough innovation and technology.

Be the most preferred organization for all its stakeholders.

Be a responsible corporate citizen with unwavering commitment to

environmental protection and conservation.


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To be ethical, integrated and transparent in our leadership.

To respect and treat with value the enquiries of others.

To be caring and abundant in giving support and services to others. To balance the body and mind ,and people serve people in good

spirit.

In keeping with Indian culture and attitude,never say no to service a

customer. To be a responsible corporate citizen and remain committed to the

cause conservation.


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Lo istic:- Gati provides customised solutions byinte ratin all the four sta es of your business procurement, production, distribution, after salesservice and reverse lo istics.

Shippin :- Shippin division GATI coast to coasten a ed in costal shippin as well as to Yan on(Myanmar) & Andaman & Nicobar Island.

Fuel Stations:- Operates 5 fuel stations situated

at Ban olore, Bel aum, Indore, Shadna ar,chhatar (karnataka). In the fuel station se ment,Gati traded in petroleum and lubricants, supplinto several pumps in arnataka, AP, MP on behalfof Oil majors.


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Gati's bouquet of value added services are designed to take care ofyour business needs:-

FOD (Freight-on-delivery): Option of paying at the time ofdelivery.

COD (Cash-on-delivery): Collection of cash against delivery fromyour customer and remitting it to you online through e-banking.

DOD (Draft/Cheque-on-delivery): Collection of draft/cheque onyour behalf at the time of delivery.

Inbound Rate Agreement: Ensures hassle-free, convenientsupplies from your vendors. Also gives you the advantage of

dealing with one company at agreed rates.


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Consumer goods

Engineering / electronics

Industrial goods

Healthcare / life sciences Computer and IT peripherals

Retail

Fashion and garments

Automotives

Tactical and confidential projects


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Gati is spread across 427 locations in India and has overseas offices in SriLanka, Nepal , Hong Kong , Singapore, and China. The infrastructure consistof a vast network of offices and franchises in India, it has five zonal offices, 61express centers, 109 depots ,160 franchisees, 54 customer convenience centers,

20 surface transit centers ,19 air transit centers , 5 rail transit centers, 3827 extraservice station and 27 modern warehouses spread out of 590 districts in thecountry.

It provide multi modal transportation include Road, Rail , Sea and Air and itsinfrastructure facilities consist of rail transit centers ,surface transit centers andair transit center across the country.

The company aims to be one- stop service provider in logistics solutions ,focusing on warehousing and infrastructure , distribution centers ,centraldistribution center , Information technology and human resources .


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Gati Technology Systems is a leading Software Company in India. it is aproactive organization providing complete and customized software solution,Internet Technology Solution and content development services.

.

Gati website was inaugurated in 2002 which aims at rendering better servicesto customers through which they can download information, lodgecomplaints outlines and track its status, check price and transit time forshipment of any Gatis service.this implementation helped Gati to work pro-actively and provide high level of customer satisfaction through reverse flowof information through the website e-mail, SMS and toll free no.


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Gati employed a workforce of 2,364 supported by 512 trainees from Gati learningschool. Gati brought fourth a higher level of critical appreciation of its performancemanagement system and linked it to business performance. It levered performancelinked award (PLA) as an impetus to gauge and reward performance.

The re-visit of the promotion policy opened a transparent career development map forall employees of Gati especially those on the fast track'. the revised promotion policy branded talent for tomorrow was based on careful diagnosis of the companysoperational dynamics and enabled high performance to get on a fast track growthroute and reach their deserving responsibility levels through special assessment centers.

Employees were informed of their strength and weaknesses at development centers andadvised on suitable means to develop themselves. the company attached greatimportance to equip every employee and business partner with the right functionalcompetencies in their job .


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Gati certified for design, marketing and providing cargo managementservices and logistics solution . Gati established modern state-of-artwarehouses at Gurgaon, Ludhiana, Jaipu r,Indore, Kolkata andPondicherry with multi-level stacking features for effectively space

utilization. Equipped with stackers ,forklifts ,cage lifts etc , they alsooffers several benefits and services like online inventory control andmonitoring , flexible hiring options and billing/data collection.

In Sept. 2004 Gati entered into a special tie-up with India airlines andlaunched Gati gold and Gati silver for speedy air delivery of time-sensitive consignments at several major airports in India. this was a

door-to-door pick up and delivery for sensitive sub-load cargo. theproduct provide a wide reach through multi-modal connectivity.

It offers value-added services such as flexible delivery options ,doorpick-up and delivery , online tracking and toll-free call number.Besides this it is more cost-effective in comparison to other services.


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Gati marketing strategy aimed at attracting new customer andretaining old ones. The clients of Gati included Hitachi , Pantaloon,Ford and Ranbaxy. A series of activities were involved to serve the

customers and make them long term clients.The dynamic market is constantly evolving and customersexpectations were on rise . Gatis priority is to work towardpersonalized and innovative services in order to build an everlastingrelationship with customers.

The company took several internal and external initiatives in thisregard including changes in people and process. Management believesthat the foundation of any successful business is only as strong as thedegree of customer satisfaction .Gati made it a primary responsibility to understand customersthoroughly and delight them in the best manner possible


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Gati provides customised solutions by integrating allthe four stages of your business procurement,production, distribution, after sales service and reverselogistics.

Gati offers its services as a 3PL or a third party logisticsprovider. A 3PL provider allows a company to- Concentrate on core competencies Create greater competitive flexibility and release working

capital Get lean and agile Exploit the better know - how and scale efficiencies of

logistics companies


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In the express industry space was a perishable Item. Thelimitation with regard to availability of space was the foremostchallenge faced by the industry.

Direct competition from unorganized sector player and freightforwarders operating on lower profit margin was anotherchallenge faced by the industry where in a collective approachcould bing back the collective services.

Due to liberalization of Indian economy and integration ofInternational trade increases customer requirement and sacling upof operation lead to heavy investment by the express industry ininfrastructure setup, hub and new technology.


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This sector comprise national and international expressservice with fully equipped infrastructure and other valueadded services.

The last service provider were technology driven

companies with major emphasis on customer service andspeed. With the development of Just in time and E-commerce

there was a sizeable business opportunity for web-enabledservices: Convenience, Reliability and Speed were thegrowth drivers.

Tracking services were offered by most of the organizedsector player. The organized sector was mostly into the package segment

of the cargo management business.


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The semi-organized sector comprised players operatingwithin a limited geographical area.

Such companies generally had their own network ofbranches and franchises in the region in which theyoperated.

However, Such companies did not have their owndistribution network, and relied on the network of other

similar companies in various location or acted as awholesaler to organize sector companies.

The semi-organized and unorganized players were mainlycharacterized by high volume business and were operated

on price advantages.


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Un-or anised sector comprised companies, which hadrestricted operation within the boundaries of a particularcity( intra-city couriers).

Such companies were found in metropolitan and urban citiesand had one or more branches in those cities.

The delivery schedules were based on the ur ency of theconsi nments.

Operated on economies of scale where lar e companiescatered to the hi her business volume.

This sector thrived on price and was unable to keep pacewith the market in terms of reliability and timeliness.


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Gati Government School, Hyderabad, AndhraPradesh.

Tsunami relief fund.

MC High School, Nagore, Tamil Nadu


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COMPANY Company Symbol

Gati Ltd. GATI LTD

Blue Dart Express Ltd. BLUEDA Corporate Couriers & Cargo Ltd. CORCOU

Elbee Services Ltd. ELBSER

Patel Onboard Couriers Ltd. PATONB

Skypak Service Specialist Ltd. SKYSER


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Dominant player in the surface cargo segment in India, whichaccounts for more than 55% of the total volume of cargo moved.

Entry into the coveted cold-chain logistics business through theacquisition of Kausar India, which has a fleet of 99 refrigeratedvehicles.

JV pact with Air India Cargo involving leasing up to five freighteraircraft in FY08. The company aims togain 11% market share in theIndian domestic air cargo industry by December 2008 and 20% byJune 2009.

Agreement with Indian Airlines to develop a joint product called IC -Zipp to leverage the growth in theretail courier market. This productwill cover the high-value courier segment and the company expects ittocontribute towards business growth both nationally andinternationally.


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Weakness

Dominance of Blue Dart

in the domestic air cargoindustry. We expect Gatito face strong competitionfrom Blue Dart in thedomestic air cargobusiness.

Freight expenses accountfor a majority of Gati'soperating expenses. Afurther increase in Gati'sfreight expenses, with an

increase in fuel costs,could potentially lead tofurther contraction inmargins.

Threat

A rise in fuel charges

could have an adverseimpact on margins,which are already low forthe company.

An economic slowdowncould impact the logistics

industry as a whole.

Significant investmentsinvolved in the setting upof warehouses andbuilding of vessels -

capital-intensiveindustry.


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Strong macroeconomic growth, robust growth in trade driving thegrowth of the Indian express industry.The industry was valued at Rs71bn in 2005-06 and has grown in the range of 25%-30% over the past 3-4years. We expect the industry to register a similar growth rate over thenext few years.

Improvement in the logistics infrastructure in the country - the dedicatedrail freight corridor, modernization of ports, and improvement in roadinfrastructure are set to give a boost to intra-state and interstate freightmovement..


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Logistic: Growth of 22.47%.

Shipping: This segments growth is 11%.

Fuel station: Growth by 18% where as Risingfuel price effected growth by 4%.

Gati turnover was 70% from logistic, 7% fromshipping and 23% from fuel station divisions.


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Gati limited has hybrid strategy of differentiation andcost-leadership.

Strengthening the market standing, Brand Positioning,Build on Core Competencies and continue to enjoy the

loyalty of customer results in steady growth and valuecreation. To position the company to focus on IT, Process

Improvement, Cost management and establishment ofstate of art warehouse.

It proactively re-engineered its warehousinginfrastructure and made its operation moremechanized, thereby reducing operational cost.


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GATI can be classified based on their generalpricing strategy. GATI must decide whether theirapproach is to use price as a competitive advantage orto seek competitive advantage in non-price ways.

Discount Pricing

Competitive Pricing

Full Price Pricing


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