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Hi, all aspiring MBA'sthis is project on Logistics and Transportation Industry in India. With reference toMarketing Management of BLR India Private Ltd.Project done by my friend Bankim. hope you guys find it useful.
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Summer internship report on
“LOGISTICS AND TRANSPORTATION INDUSTRY IN INDIA”
With reference toMarketing Management of BLR India Private Ltd.
Submitted to
Rajaram Shinde college of MBA(Affiliated to Mumbai University)
In partial fulfillment of MMS course
Under Guidance of
Prof. Madhavrao Shinde
Prepared by
Mr.Bankim .H. Dhimmar
Signature of student Signature of Director Signature of faculty
2007-2008
1
DECLARATION
I Mr. Bankim Dhimmar the undersigned is the bonafide student of MMS
course of Rajaram Shinde College of MBA. Pedhambe, Chiplun; (Affiliated to
Mumbai University).
I have completed my summer internship programme at BLR India Private Ltd.
From 02/06/2008 to 02/08/2008. I have opted specialization in marketing subject for
MMS 2nd year (3rd and 4th semester)
This is report is an original work and is the outcome of practical knowledge
and experience gained during the course of my SIP
Place: Mumbai Signature of Student
Date: 02/08/2008
2
FACULTY CERTIFICATE
I Prof. Madhavrao Shinde have gone through and verified the contents of the report
submitted by MR. Bankim Dhimmar a bonafide student of MMS course of Rajaram
Shinde College of MBA., Pedhambe, Chiplun; (Affiliated to Mumbai University).
On the basis of information and data provided by the student the report is an original
work to the best of my knowledge.
Certified this on ______day of ___________Month________ Year
Place: Signature of faculty
3
Acknowledgement
First, I would like to thank the UNIVERSITIY OF MUMBAI for giving me
the opportunity to make the project on subject “LOGISTICS AND
TRANSPORTATION INDUSTRY IN INDIA” and explore my knowledge and other
who read this project.
I would like to thank my college Principal Mr. Uday Kumthekar for giving me
permission to go ahead with the project and support for which I’m really thankful to
them.
I also like to thank all the people at BLR India Private Ltd for their gracious
support, without which the project would not have been materialized and completed
successfully.
Hereby, I want to take the opportunity to thank all sources, people, friends,
guides who help me to get the required data. Because of them I’ll able to the
knowledge of my curiosity about the subject. And those people who take out time
from their busy schedule to entertain me.
I would also like to thank Mr. Sanjay Dhanuka of BLR India Private Ltd. who
worked as a mentor for this project and helped me a lot. Also thank to Mr. Makarand
Kulkarni (Mktg Dept.) whom I interviewed for purpose of project. Because of them I
was able to gain the knowledge about my subject.
Last but not a list I am highly gratified to my fellow friends & classmates who
helped whenever I was need of it. I hope that I shall be able to realize the dream of a
worthy progress.
Mr. Bannkim .H. Dhimmar
4
Table of content
OBJECTIVE OF STUDY..........................................................................9
LIMITATION OF THE STUDY............................................................9
RESEARCH METHODOLOGY..........................................................10
INTRODUCTION:.................................................................................11
OVERVIEW................................................................................................................11
The Logistics & Transportation Industry.............................................................12
INDIA LOGISTICS& TRANSPORTATION INDUSTRY: $125 BILLION GOLDMINE........14
INDUSTRY SCENARIO:...............................................................................................16
CHANGING LOGISTICS LANDSCAPE IN INDIA............................................................17
THIRD PARTY LOGISTICS..........................................................................................18
TRANSPORTATION AND LOGISTICS............................................20
ASPECTS OF TRANSPORT...........................................................................................20
MODES AND CATEGORIES.........................................................................................21
LOGISTICS INFRASTRUCTURE IN INDIA:..................................23
ABOUT BLR...........................................................................................26
HISTORY:..................................................................................................................26
COMPANY PROFILE:.........................................................................28
ORGANIZATION STRUCTURE........................................................30
SERVICES OFFERED BY BLR..........................................................32
TRANSPORTATION SOLUTIONS:.................................................................................32
WAREHOUSING & DISTRIBUTION SOLUTIONS..........................................................33
5
INTERNATIONAL FREIGHT MANAGEMENT................................................................34
MARKETING MIX OF BLR................................................................35
PRODUCT...................................................................................................................36
PRICE........................................................................................................................36
PLACE.......................................................................................................................37
PROMOTION..............................................................................................................37
PEOPLE......................................................................................................................38
PROCESS....................................................................................................................39
INFRASTRUCTURE OF BLR.............................................................40
BLR OFFICE NETWORK............................................................................................40
CORPORATE OFFICE..................................................................................................41
BLR FLEET...............................................................................................................42
BONDED WAREHOUSES............................................................................................42
GENERAL WAREHOUSES...........................................................................................42
BONDED TRUCKING..................................................................................................43
BLR IT CAPACITY....................................................................................................43
QUALITY AT BLR.....................................................................................................44
MARKETING DEPARTMENT STRUCTURE.................................45
CLIENTS OF BLR.................................................................................46
AWARDS AND ACHIEVEMENTS:...................................................49
SWOT ANALYSIS.................................................................................50
SWOT ANALYSIS OF BLR.................................................................50
STRENGTHS...............................................................................................................50
WEAKNESSES............................................................................................................50
6
OPPORTUNITIES.........................................................................................................51
THREATS...................................................................................................................51
PROBLEMS /CHALLENGES OF INDUSTRY;................................52
CONCLUSIONS AND RECOMMENDATIONS...............................55
CONCLUSION.............................................................................................................55
RECOMMENDATIONS/SUGGESTIONS.........................................................................57
Bibliography & Webiliography................................................................63
7
Objective of study
To present an introductory profile of BLR India Private Ltd.
To provide introductory profile of the product, process, and other
technical aspects of production
To give overall information about – with reference to global and
national environment
To study in depth the marketing management of BLR India Private
Ltd.
To draw a conclusion regarding marketing management of BLR India
Private Ltd.
To study general management and organization of BLR India Private
Ltd.
Limitation of the study
This study is limited to BLR India Private Ltd.
This study is specially related with marketing management in
particular
This study is presented on the basis of information and knowledge
which could be gained during the course of SIP at BLR India Private
Ltd.
Hypothesis
(should be positive e.g. whether xyz has adopted principle of scientific
management)
8
Research Methodology
To make this project two approaches are used primary and secondary data.
Primary Data: This information is collected by interviewing those who are working
in for the logistics and transportation industry.
Secondary Data: This data is collected from various sources such as internet,
different books, newspapers and magazines on logistics and transportation industry.
Sample
Statement and significance (of product and company)
9
Introduction:
Overview
The term logistics is often misinterpreted to mean transportation. In fact, the
scope of logistics goes well beyond transportation. Logistics forms the system that
ensures the delivery of the product in the entire supply pipeline. This includes
transportation, packaging, storage and handling methods, and information flow.
The industrial policies in India have prompted manufacturers to build plants in
remote, backward areas due to inexpensive land and tax benefits. This poses some
serious logistical problems. Apart from a poor road and transportation network, the
existing communications system in India leaves a lot to be desired by any
international standard. It is in this context that logistics has to be considered in India.
Logistics call for an understanding of the total supply chain, the elements of
which include inventories, packing, forwarding, freight, storage and handling.
Logistics is responsible for all the movement that takes place within the organization
whether it is inbound logistics of incoming, raw materials or movement within the
company or the physical distribution of finished goods, logistics encompasses all of
these.
Typical logistics framework mainly consists of Physical Supply, Internal
Operations and Physical Distribution of Goods and Services. To put it more simply,
the material supply logistics starts from the base level of “generation of the demand”,
through the “process of purchase” and “supply of material from the vendor” right
through to “final acceptance” and “payments to the supplier” and “issue to the
indenter” and has to be considered as a “one whole activity” with each stage having
an impact on price/cost of material supply.
Logistics is, in itself, a system; it is a network of related activities with the
purpose of managing the orderly flow of material and personnel within the logistics
channel.
10
Travel and Transportation forms the backbone of infrastructure – the major
sector of any economy. Millions of people and businesses rely on an extensive, inter-
related network. The transportation industry is in an era of unprecedented change.
Marked by unending demands for increased services and severely limited budgets for
infrastructure, the industry faces continuous challenges. The travel industry is
exploring new horizons in the way it does business, thanks to technology. Today, with
the help of technology the travel industry is creating new propositions for its
customers - online booking, remote travel management, and new age CRM programs.
On the other hand, 3PL and Logistics provider industry that is heavily
dependant on infrastructure set by transportation has been embryonic to offer greater
scope and more complex solutions. Expansion of networks through rapid
globalization with mergers and acquisitions amongst logistics providers and need to
fulfill complex global contracts calls for higher performance through greater and
deeper end-to-end integration and state of the art visibility tools. The underlying
objective is, seamless flow of information across the complex and growing value
chains, leading to effective and faster decision making which in turn leads to better
transparency and visibility.
The Logistics & Transportation Industry
Globally, the logistics industry is valued at US$ 3.5 trillion.
The U.S., which contributes to over 25% of the global industry value, spends
close to 9% of its GDP on logistic services.
The Indian Logistics Industry is presently estimated at US$ 90 billion.
The industry has generated employment for 45 million people in the country in
comparison with the IT and ITeS sector which employs approximately 4.3
million people.
It is forecast to grow at a Compound Annual Growth Rate (CAGR) of
approximately 8% over the next three to five years.
11
Third Party Logistics (3PL) Solutions, is slated to grow at a compound annual
growth rate (CAGR) of over 16% from 2007-10. Consequently,3PL service
providers are expected to corner an increased share of the Indian Logistics pie,
from 6% in the year 2006 to 13% in the year 2011, at a CAGR of 25%
The primary growth drivers of this industry are as under:
Investments in the infrastructure sector amounting to US$ 350 billion
Increased efficiency and productivity of the transport system would result in lower
transit times.
Streamlining of the indirect tax structure:
The introduction of Value Added Tax (VAT) and the proposed introduction of
a singular Goods and Services Tax (GST) are expected to significantly reduce the
number of warehouses manufacturers are required to maintain in different states,
thereby resulting in a substantial increase in demand for integrated logistics
solutions.
Robust trade growth
Strong economic growth and liberalization have led to considerable increase in
domestic and international trade volumes over the past five years. Consequently,
the requirement for transportation, handling and warehousing is growing at a
robust pace and is driving the demand for integrated logistics solutions.
Globalization of manufacturing systems
Globalization of manufacturing systems coupled with advancements in
technology are increasingly compelling companies across verticals to concentrate
on their core competencies and avail the cost saving potential of outsourcing. This
is expected to contribute to an increase in the need for integrated logistic
solutions, which is the niche of every
12
India Logistics& Transportation Industry: $125 Billion Goldmine
India's logistics market is all set to experience a period of explosive organic
growth, judging by independent market analyst Datamonitor's latest research. The
Datamonitor report, "India Logistics Outlook 2007-2008" predicts high double-digit
growth rates for both outsourced and contract logistics in India.
With India's gross domestic profit (GDP) growing at over 9% per year and the
manufacturing sector enjoying double digit growth rates, the Indian logistics industry
is at an inflection point, and is expected to reach a market size of over $125 billion in
year 2010.
Strong growth enablers exist in India today in the form of over $300 billion
worth of infrastructure investments, phased introduction of value-added-tax (VAT),
and development of organized retail and agri-processing industries. In addition, strong
foreign direct investment inflows (FDI) in automotive, capital goods, electronics,
retail, and telecom will lead to increased market opportunities for providers of
logistics services in India.
However, as a result of the under-developed trade and logistics infrastructure,
the logistics cost of the Indian economy is over 13% of GDP, compared to less than
10% of GDP in almost the entire Western Europe and North America.
As leading manufacturers realign their global portfolios of manufacturing
locations, India will have to work on such systemic inefficiencies, in order to attract
and retain long-term real investments.
3PL/outsourced logistics is the outsourcing of a company's logistics operations
to a specialized firm, which provides multiple tactical logistics services for use by
customers as opposed to the respective company having a business unit in-house to
oversee its supply chain and transportation of goods.
With increased geographical distribution of incomes in India, the consumer
markets are extending beyond the five metros of Mumbai, Delhi, Bangalore, Chennai
13
and Hyderabad. However, rather than being pre-emptive, the companies are only
following with new distribution outlets. As such, the increased competition across
industry verticals is forcing firms to focus on product distribution, and logistics
outsourcing is gaining further momentum with this.
At just above one-quarter of the entire $90 billion Indian logistics market, is
slated to grow at a compound annual growth rate (CAGR) of over 16% from 2007-10.
14
Industry Scenario:
The recent economic changes are proof enough to establish India as an
evolving super power. The seventh-largest nation in terms of geographical area and a
prominent force among emerging countries in terms of technology and infrastructure,
India is now well ahead on the growing curve of the world economy
In wake of this, India is witnessing a renaissance of sorts across all sectors,
especially manufacturing, telecommunications, retail and services, as global as well as
local players converge to cater to the world’s biggest marketplace and consumer
community. As India surges ahead on transforming itself from a ‘developing’ nation
to a ‘developed’ state, one of the core sectors that is a crucial part of an upward swing
is - logistics.
As big money gets pumped into manufacturing and other growth-centric
sectors, especially retail –the role and potential of logistics companies is on the
upswing as crucial business operations like supply chain management and contract
logistics become key issues of managing the titanic surge in national business, both
locally, nationally and globally.
As more and more organizations think and act “global”, it is time for third
party logistics service providers to follow suit by establishing networks and logistics
infrastructure across Asia.
On the logistics front, India has picked up good momentum over the last
decade. With an estimated market worth Rs. 260,000 crores, the industry contributes
13 per cent to the national GDP.
15
Changing logistics landscape in IndiaIndia is already a heavyweight globally in the services sector. Manufacturing
still makes up only a relatively small proportion of GDP—about 20 per cent
compared to China's 45 per cent—but it is growing, both in terms of domestic focus
and exports. India's container trade has been growing at around 15 per cent over the
past five years. That means the logistics services business will be growing at a
multiple of the box trade, probably around 20 per cent and more per year. The growth
in demand presents significant opportunities for the logistics industry, as also
challenges.
Looking ahead, India is going to play an increasingly important role in driving
world economic trade, maybe even rivaling the phenomenal growth and
transformation of China a manufacturing superpower.
India's current trade profile provides important clues about the development of
logistics industry
In India the logistics costs are still higher than in the developed markets. The
transportation cost accounts for nearly 40 per cent of the cost of production, with
more than half the goods in India being moved by road.
Gaps that India Post can fill
• Limited presence of operators in rural and semi-urban areas that are growing
markets
• Lack of door to door service
• Lack of a national level integrated service provider, and
• Existence of multiple contact points like freight forwarders, aggregators,
transport agents, multiple transporters.
16
Third Party LogisticsTo put simply, 3PL (Third Party Logistics) refers to the outsourcing of a
logistics function. It could be the use of a transportation carrier, a warehouse, or a
third party freight manager to perform all or part of a company’s production
distribution functions.
The industry has been at the receiving end of increasing interest from the
private equity sector. The year 2007 witnessed just under US$ 1 billion in private
equity investments in this industry, representing approximately 7% of total private
equity investments during the year, against 3% in the previous year
The principle reasons of for this function are as under:
• Globalization of sourcing, manufacturing and distribution leading to an
increase in the complexity of material movement.
• Competition that has forced companies towards more responsiveness and a
reduction in inventories. An increased need for small but frequent shipments
with 100 percent reliability, requiring core competence in logistics
management.
• Resource constraints that require companies to concentrate only on their core
manufacturing or new product development activities
The Indian logistics industry is characterized by dominance of a disorganized
market. Transporters with fleets smaller than five trucks account for over two-thirds
of the total trucks owned and operated in India and make up 80% of revenues. The
freight forwarding segment is also represented by thousands of small customs brokers
and clearing & forwarding agents, who cater to local cargo requirements.
In order to reduce logistics costs and focus on core competencies, Indian
companies across verticals are now increasingly seeking and using the services of
third-party logistics service providers (3PLs).
Realizing the potential in the contract logistics market, 3PL service providers
are expanding their basket of services as companies are now looking for more than
17
just transportation of their products and raw materials. Trucking and courier
companies are now leveraging their network to provide express distribution and
warehousing. Similarly, freight forwarders are moving towards owning assets in the
form of Container Freight Stations (CFS), Inland Container Depots (ICD) and
container trains.
Furthermore, 3PLs are also increasing investments to become end-to-end
integrated players. As per the investment plans of the leading 3PLs in India, the
logistics industry's capital expenditure is progressively increasing to almost match its
revenue growth, a strong indicator of both 3PLs desiring to become integrated service
providers and the industry enjoying investment-driven growth.
Infrastructure congestion: the key challenge According to Datamonitor, the
logistics industry in India is currently hampered due to poor infrastructure such as
roads (over 70 % of freight transportation in India is via roads), communication, ports
and complex regulatory structures.
The National Highways (NH) form only 2% of the entire road network in
India, but handle over 40% of the national road freight traffic, putting enormous
pressure on the highway infrastructure. Also, on an average a commercial vehicle in
India runs at a speed of 20 miles per hour (mph) compared to over 60 mph in the
mature logistics markets of Western Europe and the USA.
In addition, the twelve major ports of India handle volumes higher than their
full capacity, resulting in pre-berthing delays and longer ship turn-around time
compared to even the East Asian counterparts like China and South Korea.
With the collective economic interaction of growing per capita disposable
incomes, fast growing manufacturing and organized retailing sectors, increasing
external merchandise trade, infrastructure investments by the government and 3PL
capex plans, both India's logistics industry and the 3PL sector of this market are set to
witness explosive growth by 2012
18
Transportation And Logistics
TRANSPORTATION : Transportation is the movement of people and
goods from one place to another. The term is derived from the Latin trans ("across")
and portare ("to carry"). Industries which have the business of providing transport
equipment, transport services or transport are important in most national economies,
and are referred to as transport industries.
Aspects of transport
The field of transport has several aspects: loosely they can be divided into
infrastructure, vehicles, and operations. Infrastructure includes the transport networks
(roads, railways, airways, waterways, canals, pipelines, etc.) that are used, as well as
the nodes or terminals (such as airports, railway stations, bus stations and seaports).
Vehicles travelling on the networks will include automobiles, bicycles, buses, trains
and aircraft. The operations deal with the way the vehicles are operated on the
network and the procedures set for this purpose including the legal environment
(Laws, Codes, Regulations, etc.) Policies, such as how to finance the system (for
example, the use of tolls or gasoline taxes) may be considered part of the operations
19
Modes and categories
Modes are combinations of networks, vehicles, and operations, and include walking, the road transport system, rail transport, ship transport and modern aviation.
Air transport Cable transport Conveyor transport Human-powered transport Hybrid transport New Mobility Agenda Rail transport Road transport, including human-powered transport such as walking and
cycling Ship transport Space transport Sustainable transportation Transport on other planets Proposed future transport
Logistics : Logistics is the management of the flow of goods, information and
other resources, including energy and people, between the point of origin and the
point of consumption in order to meet the requirements of consumers (frequently, and
originally, military organizations). Logistics involve the integration of information,
transportation, inventory, warehousing, material-handling, and packaging.
The simplest way to describe logistics is to say that it is all about ways and
means of meeting the demand for materials i.e. satisfying the customer with what he
wants, when he wants, where he wants etc.
Definition includes outbound, inbound, internal and external movements and returns
of material for environmental purposes. The logistics concentrate on dynamic
processes, related to the flow of materials and the relationship between the materials
and their use at different facilities.
The most wide spread definition from council of Logistics Management says
that “Logistics is the part of the supply chain process and plans, implements and
controls the efficient, effective flow and storage of goods, services and related
information from the point of origin to the point of consumption in order to meet
customers requirements.”.
20
Major cost elements
Transportation 35%
Inventories 25%
Losses 14%
Packaging 11%
Handling and Warehousing 9%
Customers’ shopping 6%
• Transportation 35%• Inventories 25%• Losses 14%
21
Logistics Infrastructure in India:
Logistics involved global movement of materials, information and funds from
country to country
Requires excellent state of the art infrastructure airports, sea ports, Internet
and other related facilities
Indian infrastructure is poor as compared to developed and developing
countries and stands at 54 amongst the 59 countries.
Road …………………56/59
Rail……………………25/59
Seaport………………..51/59
Airport………………...10/59
The underlying institutional problem
Fragmentation and overlapping of responsibilities among various
government agencies.
Complexity of international trade documentation process and lack of
IT infrastructure.
Complex tax laws
Lack of professionally competent logisticians
Industry readiness: weak asset or system management skills
Roadways
National Highway Development Project (NHDP), US $13 billion, 1998-2007
Four/six laning of the highway connecting Mumbai
North-South and East-West corridors (NS-EW)
Kashmir to Kanyakumari and Silchar to Porbandar
The end to end transport to be optimized by controlling loading densities
through packaging and palletizing standards and loading and unloading
services automation.
Slow speeds, traffic congestion, high wear and tear of vehicles are some of the
problems
Air
22
The air cargo consists of express mail, computers, chips, electronic and optical
equipment, precision instruments and perishable food stuffs.
The six major airports carry 88% of the total cargo.
Privatization of the major airport, airlines is a popular headline.
Railways
During the year 2006-2007 the Indian Railway carried
513.5 million tones of freight Rs 23,305 crores (69%)
89% of its freight is commodities like coal, fertilizers, cement,
petroleum products, food grains, finished steel, iron ore and raw
material to steel plants.
5,150 million passengers, Rs 11,213 crores (31%)
High Density Network (HDN) connecting Bombay, Delhi, Calcutta, and
Madras,
Carries 65% of the total rail freight and 55% of passenger traffic.
Concur in the Flag ship route
Freight is moving away from Indian railway although cheaper
23
Seaports Vast coast line of 7517kms handles 95% of foreign trade
12 major ports and 184 other (minor & intermediate) ports
Traffic in major ports : 2007-08 was 333 million tones
• Hand
24
About BLR
History:
Mr. L.C. Goel (affectionately called LCG), a self-made man, a great visionary
of strong values, started a small trucking business in the 1968.
His short-term goal was to establish a road transport business between his
native place and the commercial capital of India. The company was very aptly named
Bombay Ludhiana Roadways, catering to the transportation needs of the customers
in these stations and the stations enroute.
With his able leadership and great vision, LCG nurtured the nascent
organization into an India wide Transport Company catering to the very need of the
customers nationally. Quality, Integrity and Social responsibility are the values that he
practiced, preached and imbibed in the culture of BLR.
In line with his mission, he had grown the business steadily to about INR 2
crores by 1989. By that time, the 2nd generation had already been groomed to take the
reigns of the business. Mr. Ashok Goel, a Commerce Graduate from Mumbai
University, joined the Family business in 1985 started by his father Mr. L C GOEL.
Through his able leadership, he has transformed BLR into an INR 235 crores
company with a network of more than 80 offices spread across the length & breadth
of the country.
Mr. Ashok Goel is an active member of various developmental industry bodies
& associations like Indian Road Transportation Development Association (IRTDA),
All India Transport Welfare association (AITWA) and Bombay Goods Transport
Association (BGTA) and is actively involved in industry regulations necessary for the
development of the transport infrastructure in the country.
Company Profile:
25
Set up as a small trucking business in 1968, by a visionary Mr. LC Goel, BLR
has shifted gears to become one of the largest & most reliable Transportation &
Logistics companies in India.
From a one man operating and managing in a single office in 1968, the
company grew steadily to a sizeable business of about INR 2 crores (INR 20 Million)
and three offices by 1989.
1990s saw the spurt of growth in BLR as the company grew from a INR 2
crores in revenues from three offices to 120 crores (INR 1.2 billion or USD 27
million) out of a network of more than 80 offices all over India at present. The
Company has moved up the ladder through innovation & consolidation and today
with a 450-people strong family, BLR has become one of the most sought after
Transportation & Logistics companies in India. The fact is well endorsed by the
customers nationally.
With a fleet of more than 350 vehicles including trucks, trailers & LCVs and
with a network of warehouses in major cities in India, BLR offers a truly integrated
Logistics Services to its customer. Custom Bonded-warehousing, bonded-trucking
and excise bonded warehousing are additional unique features of BLR's offerings to
complete the bouquet of total Logistics Services.
BLR is committed to service the customers by offering complete logistics &
supply chain solutions. In order to facilitate this, BLR has promoted BLR Logistics to
cater to the Logistics / Supply Chain requirements of the customers. BLR Logistics is
being led by professionals with varied corporate backgrounds and rich industrial
experience
26
Name of company : BLR India Private Ltd.
Corporate Office : B-115/117,
Virwani Ind. Estate,
Western Express Highway,
Goregaon (E)
Mumbai-Maharashtra
Pin: 400063
TELEPHONE : 22-40419090, 66981844, 9869302240
E-MAIL : www.blrindia.com
27
Organization Structure
Mr. Mohan
Meghnani(Executive Director)
Mr. Mohan
Meghnani(Executive Director)
Ms.Nilu Goel
(Director Finance)
Ms.Nilu Goel
(Director Finance)
Mr.P.D.Sharma(Director
Transport & Pricing)
Mr.P.D.Sharma(Director
Transport & Pricing)
Mr.Mansingh
Jaswal(Director Sales & Mktg)
Mr.Mansingh
Jaswal(Director Sales & Mktg)
Mr.Gautam
Suri(Director
Operations)
Mr.Gautam
Suri(Director
Operations) Mr.Ashok Goel
(Managing Director)
Mr.Ashok Goel
(Managing Director)
28
Established by and on:
Mr. L.C. Goel (affectionately called LCG), a self-made man, a
great visionary of strong values, started the business in the
1968.
Named Bombay Ludhiana Roadways
1 office in 1968
Mr. Ashok Goel joined the Family business in 1985
63 offices all over India at present
Product category:
BLR India Private Ltd. provides complete LOGISTICS AND
TRANSPORTATION solutions. BLR offers a truly integrated Logistics
Services to its customer. Custom Bonded-warehousing, bonded-trucking
and excise bonded warehousing are additional unique features of BLR's
offerings to complete the bouquet of total Logistics Services.
Product range:
BLR India Private Ltd. provides a variety of services to its customers
that includes Transportation solutions, Warehousing & Distribution
Solutions, International Freight Management Logistics & Supply Chain
Solutions
29
Services Offered By BLR
Transportation solutions:
BLR has the capability to provide Transportation to all kind of material within
India. The broadline segmentation of Transportation Services is as below;
o Domestics Transportation
o Bonded Trucking
o Project Transport
o Scheduled Transport
o Multi Modal Transport
o Customised Transport (Milk run,
Hub& Spoke etc.)
30
Warehousing & Distribution Solutions
The ranges of warehousing services currently offered to the customers are following;
Bonded Warehousing (Custom bonded and excise bonded)
General Warehousing (for all industry types)
Export Stuffing warehouse
Export Vendor Consolidation
31
International Freight Management
BLR through its logistics services entity does the complete programme
management for the international Freight Management. We deal with the following:
Air Export Freight Management
Air Import Freight Management
Ocean Export Freight Management
Ocean Import Freight Management
Project Transportation
32
Marketing mix of BLR
The service marketing mix comprises off:
• Product
• Price
• Place
• Promotion
• People
• Process
The above mentioned marketing mix used for service marketing can also be explained with the given diagram:
33
Process
People
Promotion
Place
Price
Product
ServiceMarketing
Mix
ProductBLR India Private Ltd. provides complete LOGISTICS AND
TRANSPORTATION solutions. BLR offers a truly integrated Logistics Services to
its customer. Custom Bonded-warehousing, bonded-trucking and excise bonded
warehousing are additional unique features of BLR's offerings to complete the
bouquet of total Logistics Services.
PriceOn receiving the tender from the client the marketing department forwards the
details to the operations department in order to ascertain the transportation cost. The
operations department while determining the cost takes into consideration:
Nature of Goods (consumer, durable, perishable etc)
Weight of Goods
Height of Goods
Government regulations
Distance to be covered
Market Price
Loading & unloading time
Fuel prices (rise in fuel prices adds to the total cost)
Transportation cost
Profitability
Insurance
34
PlaceBLR India’s network extends to almost every major state and city of India.
BLR has more than 80 branches all around the country from north to south and west
to east. Some of the branches are in Vapi, Surat, Pune, Ahmedabad, Akola,
Aurangabad, Bangalore, Baroda, Bellary, Bhopal, Chennai, Gurgoan, Hyderabad,
Indore, Kanpur, Panipat etc. The corporate office of BLR India Private Ltd.is in
Goregaon
Promotion BLR India Private Ltd being a complete logistics and transportation service
provider in order to promote their services uses the following promotional tools;
Newspapers:
BLR India Private Ltd in order to market its services advertises in the
following newspapers:
Economic Times
Exim India
Business Standard
DNA Money
Magazines & Journals:
BLR India Private Ltd in order to market its services advertises in a
magazine called as Transportation and the Times Shipping Journal.
Internet:
BLR India Private Ltd in order to market its services also has its own
dedicated website called as www.blrindia.com
BLR India Private Ltd also sends e-mails on a regular basis to its
existing customers to let them know about their new offers.
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People
An essential ingredient to any service provision is the use of appropriate staff
and people. Recruiting the right staff and training them appropriately in the delivery
of their service is essential if the organization wants to obtain a form of competitive
advantage. Consumers make judgments and deliver perceptions of the service based
on the employees they interact with. Staff should have the appropriate interpersonal
skills, aptititude, and service knowledge to provide the service that consumers are
paying for. It tells consumers that the staff is taken care off by the company and they
are trained to certain standards.
An important marketing task is to set standards to improve quality of services
provided by employees and monitor their performance. Without training and control
employees tend to be variable in their performance leading to variable service quality.
One of the biggest assets for BLR India Private Ltd.is its people. BLR is a
place where employees are fully aware of their job duties and responsibilities and
posses the required knowledge and skills to perform their day to day activities. It
adopts an open door policy where employees can directly communicate their views
and ideas to the top level management. The people working in the marketing
department directly report to the managing director and there is no hierarchy as such
that prevails in the department. Each individual is aware of the role they need to play
in order to contribute to individual and organizational success. BLR as an
organization believes in satisfying its internal customers (employees) which in turn
would keep the ultimate customer (external customers) satisfied.
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Process
Refers to the systems used to assist the organization in delivering the service.
Process – this means procedures, mechanism and flow of activities by which a
service is acquired. Process decisions radically affect how a service is delivered to
customers. It includes several processes e.g. first contact with customers,
administrative procedure regarding course delivery, preparation, delivery and
evaluation of the courses.
The process at BLR India Private Ltd:
ensures that marketing happens at all levels from the marketing department to
where the service is provided
considers introducing flexibility in providing the service; when feasible
customize the service to the needs of customers
recruits high quality staff, treats them well and communicates clearly to them
the attitudes and behavior of the employees are the key to service quality and
differentiations
attempts to market to existing customers to increase their use of the service, or
to take up new service products
sets up a quick response facility to customer problems and complaints
employs new technology to provide better services
uses branding to clearly differentiate service offering from the competition in
the minds of target customers
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Infrastructure of BLR
BLR Office Network
BLR India’s network extents to almost every major state and city of India.
Our endeavourer is to deliver complete and subtle logistic solutions to each and every
corner of the country. BLR has more than 80 branches all around the country from
north to south and west to east. Some of the branches are in Vapi, Surat, Pune,
Ahmedabad, Akola, Aurangabad, Bangalore, Baroda, Bellary, Bhopal, Chennai,
Gurgoan, Hyderabad, Indore, Kanpur, Panipat etc. The below given figure explains
the same:
38
Corporate OfficeB-115/117,
Virwani Ind. Estate,
Western Express Highway,
Goregaon (E)
Mumbai-Maharashtra
PIN:400063
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BLR Fleet
With a fleet of more than 350 vehicles including Trucks, Trailers and LCVs,
BLR has the capability to carry all types of goods for transport within India. The
profile of BLR customers varies from Global MNCs, Indian MNCs, Indian Corporate
house, Start Trading house, Trading houses and Importers & Exporters.
The industries and the products that BLR caters to currently include
pharmaceuticals, Chemicals, Lubricants, Engineering, Automotive, Electronics, News
Print, Papers, Fibers, Polymers, Steel, Project machinery, Plant & Equipments, odd
dimensional cargo and Import & Export containers.
With thorough knowledge of Indian Transport regulations, customers trust
BLR and entrust with responsibilities to deliver goods in time, every time.
Bonded Warehouses
BLR is Govt. approved Custom-bonded warehouse operator within India and
is operating Custom-bonded and Excise Bonded warehouses around the country. BLR
is also adding 50,000 sq ft state-of-art bonded warehouse space in New Delhi to the
existing network.
An Excise-bonded warehouse of 20,000 sq ft is also being planned for export
container stuffing at Mumbai and Ludhiana.
General Warehouses
BLR offers warehousing and distribution services to its customers. With a
warehouse space of more than 100,000 sq ft and with a strong transport network
around the country, BLR has the capability to provide integrated logistics & supply
chain services to its customers in India.
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Bonded Trucking
BLR has been approved by CONCOR (Container Corp of India), a PSU of
Govt. of India, to operate bonded-trucking services within India and is one of the few
transportation companies in the panel of Concor to offer this service. BLR has been
given this approval by CONCOR after a due diligence on the capability, security and
quality parameters.
BLR IT Capacity
BLR has a dedicated in-house team of professionals to manage the IT systems.
BLR is using various modes of technology to support the business. All the
offices are linked through the email network.
BLR uses Highway Vehicle Tracking System, Advanced Computer and
Communication technology to link its network of branches nation wide.
Online tracking system is in place for tracking the movement of trucks and
shipments.
BLR is committed to invest in leading-edge IT capability to support the gamut
of logistics services offered and to give a real time Track & Trace visibility to
our customers.
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Quality at BLR
BLR is an ISO 9001:2000 certified company. BLR has a quality policy in
place which ensures that each member of the BLR family complies with the set
quality norms.
All the processes that we undertake have an internal quality standard. Even
our drivers are ensured to be compliant with the norms set forth for safety, security
and quality. The processes are thoroughly monitored and regularly audited.
We at BLR India Private Ltd. constantly endeavor to give utmost
Satisfaction to all customers at competitive costs in all spheres of our business
activity, achieving the highest standards of quality and service, by ethical means,
constantly upgrading our skills through training and motivation and continually
improve the effectiveness of the quality management systems
Our mission is to provide safe and prompt services as part of complete and
cost effective solutions to our client’s logistic requirements.
Our vision is to become INDIA'S leading transport company and play an
important part in the economic growth of the company
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Marketing department structure
43
Mr.Ashok Goel
Managing Director
Mr. Makarand Kulkarni
Mr. Mahesh Shetye
Mr. Govind Sharma
Mr. Krishnan
Clients of BLR
BLR India Private Ltd. has a huge customer base. BLR India Private Ltd. Deals with
variety of goods and services listed below:
Consumer Goods: Sony India Ltd
Pidlite Industries Ltd
Bajaj Electricals Ltd
H & R Johnson Ltd
VIP Industries Ltd
Nestle India Ltd
LG Electronics
Gujarat Glass (P) Ltd
Samsung
Polymers: Reliance Industries Ltd IPCL Ltd GSFC Ltd
Project Machineries: Wartsila NSD India Ltd
Mazagaon Docks Ltd
Larsen & Toubro Ltd
Steel/Cooper: Birla Cooper Ltd
Vikram Ispat Ltd
Aarti Steels Ltd
Bhushan Steel Stripes Ltd
Jindal Iron & Steel
Automobiles: Honda Siel Cars India Ltd
Pharmaceuticals:
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Medley Pharma
Agio Pharmaceuticals
Lupin Laboratories
Ajanta Pharma
Dabur
Agro Chemicals: E.I. Dupont (I) Ltd
E.I.D Parry (I) Ltd
Excel Industries Ltd
Custom House Agent: LEE & Muirhead Ltd
J.M. Baxi Co.
Bax Global India Ltd
Maersk Logistics Pvt Ltd
UT Worldwide
Excel India Pvt. Ltd
Yarn/Fibre/Textile: Nahar Group of Industries
Vardhaman Spg. Mills Ltd
JCT Ltd
Grasim Industries Ltd
Government Undertaking:
Container Corporation of India Ltd
Cotton Corporation of India Ltd
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We are proud to have these Popular Brands as our customers
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Awards and Achievements:
National Trade Excellence Award
Reflects the excellence in BLR way of working
Samajshri Award
Reflects the commitment of BLR towards the social responsibility
Appreciation Awards from AIMTCI
All India Motor Transport Congress on March 2005
Appreciation Award by BGTA (Thrice)
Bombay Goods Transport Association: Sept 2003, Sept 2004, Nov 2005
47
SWOT Analysis
SWOT Analysis is a strategic planning method used to evaluate the Strengths,
Weaknesses, Opportunities, and Threats involved in a project or in a business
venture. It involves specifying the objective of the business venture or project and
identifying the internal and external factors that are favourable and unfavourable to
achieving that objective. In SWOT, strengths and weaknesses are internal factors and
opportunities and threats are external factors.
SWOT Analysis of BLR
Strengths Strong Brand Image
Quality and reliability.
Superior performance vs competitors in terms of delivery.
Some staff has experience of end-user sector.
Direct delivery capability.
Product innovations ongoing.
Management is committed and confident.
Willingness of staff to adapt to change
Weaknesses Customer lists not tested.
Paperwork
We cannot supply end-users abroad.
Need more sales staff.
Refresher training not practiced.
Delivery-staff need training.
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Opportunities Large, Potential Domestic and International Market
Could extend to overseas.
New specialist applications.
Could seek better supplier deals
Threats Competition from other developing countries, especially China.
Bad roads
Retention of key staff critical.
Vulnerable to reactive attack by major competitors
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Problems /Challenges of industry;
There are a number of problems faced by the logistics and
transportation industry which are discussed below:
1. Cut Throat Competition :
The logistics and the transportation industry have been exposed to cut
throat competition from the Indian and the overseas competitors in the recent
past. Due to globalization the industry has seen entries of new companies from
the overseas markets which offer excellent services at competitive rates.
Though there has been a significant growth in the sector logistics analyst
believe it is an era of survival of the fittest.
2. Heavy Maintenance cost:
The logistics and the transportation industry is concerned with the
movement of goods from the place of manufacturing to the place of
consumption for this it requires trucks, trailers, low bed trailers, well bed
trailers, which vary from 20 feet to 40feet depending on the clients
requirements. The cost incurred to maintain these modes of transports
contributes to a large amount of the total expenses incurred.
The cost of components and accessories, such as tyres and batteries,
has escalated tremendously.
3. Changing government Policies:
A change in government policies regarding transportation, octroi,
freight is a also one of the major challenges faced by the logistics and
transportation industry. Change in these policies lead to increase in the total
cost incurred by an organization
4. Heavy Advertisement cost:
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In order to market its products a huge amount is spent in the
advertisements in business newspapers like the economic times, Exim
newspaper etc in order to market its products and make ones presence felt in
today’s highly competitive market
5. Entry of Foreign Companies :
Due to globalization, privatization and liberalization the logistics and
the transportation sector in the recent past has seen new companies from the
overseas market entering in the sector. This has resulted in cut throat
competition which ultimately directs a company to achieve exceptional
customer experience and generating brand loyalty amongst their clients.
6. Increasing Fuel/Diesel prices :
The logistics and the transportation is primarily concerned with movement
of goods and services from one place to another. To achieve this it requires the use
of trucks, trailers etc and to run these vehicles we require fuel. With a constant
rise in fuel prices (petrol and diesel) the overall cost increases as well. Rise in fuel
prices is one of the major challenges before the transportation and logistics
industry.
7. Creditors Collection Period:
On a number of occasions the industry provides credit facility to the clients
& faces the problem of not receiving the payment from its creditors on time. In
today’s cut throat competition era it is important to provide credit facilities to the
customers and on the other hand a inappropriate credit policy can lead to blockage
and idealization of funds which in turn would hamper the Organizations success.
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8. Availability of inadequate infrastructure facilities:
Availability of adequate infrastructure facilities is vital for the acceleration of
the economic development of a country. One of the greater challenges India is
facing today perhaps is that of developing and deploying country’s infrastructure
to keep pace with constant change that is revolving around us. Conditions on
Indian road are very bad and hazardous. They tend to reduce speed of vehicles,
which leads to wastage of natural transport capacity.
The Indian Government has accorded a high priority to investment in sectors
such as the roads, railways, power, ports and airports. The Government has taken
appreciable initiatives like building the golden quadrilateral but it is like a drop in
the ocean. The industry is still coping with an inadequate and poor quality of
infrastructure network and suffers from a near absence of technological
improvements. All these act as economic bottleneck impending growth across
transportation industries.
Eg. Trucks get stuck in muddy roads, work sites remain unapproachable, and serious vehicular accidents are caused, Obstruction by Trees on highways while carrying goods which are taller in nature etc.
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Conclusions and Recommendations
Conclusion
Logistics is the one important function in business today. No marketing,
manufacturing or project execution can succeed without logistics support
Logistics is important in India because of the country's size, geography,
population variety, natural and man-made calamities etc. The transport facilities are
inadequate in India and roads are bad. India lacks a well-developed road network and
waterways are still unexploited.
Due to competition, globalization and information availability, logistics has
gained extra importance. First: the days are gone when a manufacturer had a better
raw material supplier than competitors. Then, the operations in a manufacturing
process are well known to all. The processes are more or less standard. Also,
technology is available to all. The only area where one can score over competitors is
logistics. If logistics cost is reduced, there is a gain.
Logistics is a critical factor for effective marketing too: for, if a company
cannot reach the right thing at the right place etc., then, regardless of the marketing
efforts, the business comes down
Logistics is one of the areas of the supply chain i.e. growing at a tremendous
case as the Internet and E-Commerce is drastically changing the range, delivery time
and the speed of information as well as ordering and payment process. Due to the big
boon of information technology, greatly influencing and enhancing the effectiveness
of logistics, the time is not far when logistics services would prove to be one of the
major contributors to the National Income.
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The industrial policies in India have prompted manufacturers to build plants in
remote, backward areas due to inexpensive land and tax benefits. This poses some
serious logistical problems. Apart from a poor road and transportation network, the
existing communications system in India leaves a lot to be desired by any
international standard.
With increased geographical distribution of incomes in India, the consumer
markets are extending beyond the five metros of Mumbai, Delhi, Bangalore, Chennai
and Hyderabad. However, rather than being pre-emptive, the companies are only
following with new distribution outlets. As such, the increased competition across
industry verticals is forcing firms to focus on product distribution, and logistics is
gaining further momentum with this.
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Recommendations/Suggestions
1. Market Research
The Logistics and Transportation industry is one of the booming sectors of
the Indian Economy and India's market is all set to experience a period of
explosive organic growth and thus market research plays a vital role in the
expansion of the Industry.
Market research is the process of systematically gathering, recording and
analyzing data and information about customers, competitors and the market.
The company can go ahead and conduct a systematic market research so as
to understand and explore the potential markets where more business can be
generated.
Market information is making known the prices of the different
commodities in the market, the supply and the demand. Information about the
markets can be obtained in several different varieties and formats.
Examples of market information questions are:
Who are the customers?
Where are they located and how can they be contacted?
What quantity and quality do they want?
2. Timely Supervision of Vehicles:
The logistics and the transportation industry is concerned with the
movement of goods from the place of manufacturing to the place of consumption
for this it requires trucks, trailers, low bed trailers etc The cost incurred to
maintain these modes of transports contributes to a large amount of the total
expenses incurred.
BLR may appoint a Dedicated Vehicle supervisor to look after the
replacement, maintenance, performance etc of the vehicles on a regular basis. This
in turn would help in determining when the vehicles needs to be serviced, whether
they need to be replaced etc which would help in reducing cost to a great extent.
The appointment of a vehicle supervisor would definitely lead to regular
55
maintenance and in turn would reduce the cost and to minimize wastages which in
turn would contribute to the Organizations success.
3. Appropriate Credit Policy:
There should be an appropriate credit policy developed as per the
convenience of the organization. As a higher credit collection period can lead
to idle funds and contribute to the inefficiency of the organization, credit
should be assigned to the client based on some research done about the
turnover, financial position etc of the client. With proper assignment of credit
one can avoid the blockage of funds which in turn can be used for other
business activities and in turn would contribute to the organizations success.
When the services are
provided by the company on credit
basis, the Company should keep a
record of the number of days the
client takes to pay the amount back,
say a client in particular has been
delaying payments on a regular
basis, the company should consider
altering its credit policy for the
particular client may be by ways of
asking for a greater amount of
advance or may be completely on
cash basis etc
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General management
Competitors: BLR India Private Ltd which provides complete Logistics solutions faces cut
throat competition from companies from India. With Globalization at present
and the realization of the huge amount of potential for the logistics and
transportation industry in India there are companies from other countries
entering into the logistic business in India.
Some Major Competitors:
Best Roadways.
Caravan Road lines.
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Product photos LCV
CONTANIRISED LCV
TRUCKS
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Open Truck
40 Feet Trailer
Low Bed Trailer
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Well Bed Trailer
Distribution
Warehousing
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Bibliography & Webiliography
http://www.wikipedia.org/
http://managementparadise.com/
http://marketingteacher.com/
Economic Times
Exim India
Business Standard
DNA Money
Transportation Magazines
Times Shipping Journal
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