Escolar Documentos
Profissional Documentos
Cultura Documentos
Submitted to
Rajaram Shinde college of MBA
(Affiliated to Mumbai University)
Under Guidance of
Prof. Madhavrao Shinde
Prepared by
Mr.Bankim .H. Dhimmar
2007-2008
1
DECLARATION
2
FACULTY CERTIFICATE
I Prof. Madhavrao Shinde have gone through and verified the contents of the report
On the basis of information and data provided by the student the report is an original
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.
4
Table of content
OBJECTIVE OF STUDY........................................................................8
RESEARCH METHODOLOGY............................................................9
INTRODUCTION: ................................................................................10
OVERVIEW...................................................................................................................10
INDUSTRY SCENARIO:.....................................................................................................15
ABOUT BLR...........................................................................................25
HISTORY:.....................................................................................................................25
TRANSPORTATION SOLUTIONS:..........................................................................................30
5
INTERNATIONAL FREIGHT MANAGEMENT...........................................................................32
PRODUCT.....................................................................................................................34
PRICE..........................................................................................................................34
PLACE.........................................................................................................................35
PROMOTION .................................................................................................................35
PEOPLE........................................................................................................................36
PROCESS .....................................................................................................................37
INFRASTRUCTURE OF BLR.............................................................38
BLR FLEET.................................................................................................................40
BONDED WAREHOUSES..................................................................................................40
GENERAL WAREHOUSES.................................................................................................40
BONDED TRUCKING.......................................................................................................41
BLR IT CAPACITY.......................................................................................................41
QUALITY AT BLR.........................................................................................................42
CLIENTS OF BLR.................................................................................44
SWOT ANALYSIS..................................................................................48
STRENGTHS..................................................................................................................48
WEAKNESSES...............................................................................................................48
6
OPPORTUNITIES.............................................................................................................49
THREATS......................................................................................................................49
CONCLUSION................................................................................................................53
RECOMMENDATIONS/SUGGESTIONS...................................................................................55
7
Objective of study
• 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
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.
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.
11
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%
Increased efficiency and productivity of the transport system would result in lower
transit times.
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.
12
India Logistics& Transportation Industry: $125 Billion
Goldmine
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.
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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:
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 India
India 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 Logistics
To 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:
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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.
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.
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Transportation And Logistics
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
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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
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
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information from the point of origin to the point of consumption in order to meet
customers requirements.”.
• Transportation 35%
• Inventories 25%
• Losses 14%
• Packaging 11%
• Customers’ shopping 6%
• Transportation 35%
• Inventories 25%
• Losses 14%
21
Logistics Infrastructure in India:
Roadways
• National Highway Development Project (NHDP), US $13 billion, 1998-2007
22
• Slow speeds, traffic congestion, high wear and tear of vehicles are some of the
problems
Air
• 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
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• Seaports
Vast coast line of 7517kms handles 95% of foreign trade
• 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.
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.
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Name of company : BLR India Private Ltd.
E-MAIL : www.blrindia.com
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Organization Structure
Mr.
Mohan
Meghnani
(Executive
Director)
Mr.
Ms.
Gautam
Nilu Goel
Suri (Director
(Director Finance)
Operations) Mr.Ashok
Goel
(Managing
Director)
Mr. Mr.P.D.
Mansingh Sharma
Jaswal (Director
(Director Transport &
Sales & Pricing)
Mktg)
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• 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.)
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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
Product
• Product
Process Price
• Price
• Place
Service
Marketing
• Promotion Mix
• People
33
Product
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.
Price
On 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
Place
BLR 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.
35
People
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.
• 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 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 Office
B-115/117,
Virwani Ind. Estate,
Western Express Highway,
Goregaon (E)
Mumbai-Maharashtra
PIN:400063
39
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.
Bonded Warehouses
General Warehouses
40
Bonded Trucking
BLR IT Capacity
41
Quality at BLR
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.
Our mission is to provide safe and prompt services as part of complete and
cost effective solutions to our client’s logistic requirements.
42
Marketing department structure
Mr.Ashok
Goel
Managing
Director
43
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:
44
• Honda Siel Cars India Ltd
Pharmaceuticals:
• 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
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
45
We are proud to have these Popular Brands as our customers
46
Awards and Achievements:
• Samajshri Award
Reflects the commitment of BLR towards the social responsibility
47
SWOT Analysis
Strengths
Weaknesses
48
Opportunities
Threats
49
Problems /Challenges of industry;
50
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
51
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.
52
Conclusions and Recommendations
Conclusion
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.
53
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.
54
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.
55
maintenance and in turn would reduce the cost and to minimize wastages which in
turn would contribute to the Organizations success.
56
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.
57
Product photos
LCV
CONTANIRISED LCV
TRUCKS
58
Open Truck
40 Feet Trailer
59
Well Bed Trailer
Distribution
Warehousing
60
Bibliography & Webiliography
• http://www.wikipedia.org/
• http://managementparadise.com/
• http://marketingteacher.com/
• Economic Times
• Exim India
• Business Standard
• DNA Money
• Transportation Magazines
61