TRANSPORT CORPORATION OF

INDIA LIMITED
SUNIL SHAW
ENROLLMENT NO040201133
PGDM 2014-16

CONTENT
Logistics industry
Macro economic environment in India
Introduction of TCI
TCI Group
Industry Dynamics
SWOT ANALYSIS
Future Outlook
2

Logistics industry in India

The Indian logistics industry is expected to grow annually at the

rate of 15 to 20%.

Logistics spend in India is estimated to be around 13% of the GDP,

which is comparatively higher than other developed countries

The sectors contribution to the GDP has been increasing mostly

because of the growing economic developments in the country

Indias logistics sector attracted huge investments, leaving behind

some of the major sectors including aviation, metals, and
consumer durables

Impact of Macro-economic changes on

Rationalizing the impact of taxes on Production, Distribution and Inventory
Logistics
GST

management

Consolidation of warehouses and moving towards Hub-and-spoke model

Multi modal movement between Hubs

Creation of additional dedicated rail freight capacity

DFC/
Diamond
Quadrilat
eral
Increase
d
outsourci
ng of
Logistics
E-commerce
driven
growth in
consumptio
n

Increased bulk multi modal movement for improved productivity &

efficiency
Will result in development of logistic Warehouses in the vicinity of
Growth in trend towards outsourcing of logistics in non traditional
Freight Corridor.
industries
Larger scope of outsourcing e.g. order processing, packaging, kitting
With increased per capita disposable income, consumption driven sectors will
etc. will go up
grow
Sectors like Food services, e-commerce, consumable durables etc. will get a
boost .
4

Group TCI
Key
Facts
Year of
Establish
ment
Turno
ver

GST Ready New Warehouse

locations
195
8
2800
Cr.

Movement
by Value of
India GDP

2.5
%

Employees
Strength

6000
+

Company
Owned
Branches

1400
+

Warehou
se
Covered
Area
Vehicles/Day
Managed on
Road

10.5 Mn
Sft

5 new Warehouses (For W/H

management only)

One at
Nagpur
(1.65
lakhs sq.
ft.)
One at
Hyderab
ad
(1 lakhs
sq.
ft.)

Two at
Chennai
(45,000
&8
lakhs sq.
ft.)
One at
NCR
(2.5
lakhs
sq. ft.)

900
0
5

Group
TCI SBUs & Services

Other Group Companies & Services

FTL/FCL, LTL & Overdimensional cargo

services through
Road, Rail & Sea.

JV with CONCOR to
provide end to end
multi modal
solutions.

Indias fastest
growing express
company for door to
door courier and
cargo.

TDL undertakes
development of the
commercial
properties of TCI. It
also develops large
scale Warehouses,
Logistics Parks etc.

A Single-window
solutions enabler
from
Conceptualization
to Implementation
Leading player in
Coastal Shipping ,
NVOCC & Project
Cargo
Completes the
service offering of

TCI
Transportati
on Company
Nigeria Ltd.

JV with Mitsui & Co

for
logistics
A JVAuto
between
(Toyota
India
Indorama
Eleme
project)
Petrochemicals
Ltd. and TCI Global

Industry Dynamics and SBU Snapshot

Industry
Scenario

Industry
Growth
% of Total
Revenues
(FY 15-16 Q3)
TCI EBIDTA
Margins
Rev. Growth
CAGR 5 Yrs.
ROCE (5-yr
Average)
ROCE (10-yr
Average)

Mature,
Fragmented, Low
barriers to entry,
low cost

Growth, niche,
high entry
barriers, cost
efficiency

5-8%

8-12%

Nascent,
knowledge
based, very high
barriers, single
window
15-20%

Growth, high entry

barriers, low cost

37%
(611 cr.)

29%
(483 cr.)

28%
(460 cr.)

6%
(96 cr.)

3-5%

8-10%

10-12%

25-30%

2.2%

11.3%

19.8%

13.2%

11%

46%

25%

17%

15%

40%

23%

19%

10-15%

TCI : Serving the Complete

Ecommerce Chain
1.
Marketplac
e
Warehou
ses
Dedicate
&
Shared

Suppli
ers

ii
iii

Coordinati
on
Scheduling
Route
optimization

2. Inventory
Based

Consolida
tion
center

~
200,00
0
units /
day

1. At Supplier
Supplier
i

Compan
ies

~
20,00
Deliveries
/
0
day

150,000
Orders /
day

2. Inventory / Marketplace /
Cross Dock- FC
Receipts and
i
Bar Codin

ii
Storage

Ship

3. At Customer
place
Doorstep
i
ii
iii

Put away and

Order
iii
processing
on SLTo
Return

V
iiv

Custom
ers

delivery
FOD
Reverse
logistics

Vendor
Sortation and
8

SWOT ANALYSIS
Strengths

Weakness

Largest integrated road transport

Presence in largely unorganised and

player
providing value added services
Strong relationship with clients & IT
penetration

Opportunities
Goodwill in market
Introduction of GST to boost revenues
Improvement in sea freight rates
Very few big players in the market

fragmented market
Reliance on spot market for truck
availability
Highly competitive
Threats
Railways getting more aggressive
Increasing fuel cost / de-regulation of
diesel prices
Increase in toll rates could reduce
margins

Porters Five Force

Model
Entry Barriers: Low

Entry Barriers: Low

Low capital requirement easy credit

Low capital requirement easy credit
availability, low skills / qualification
availability, low skills / qualification
Competition:
required and ease in obtaining license.
required and ease in obtaining license.

High

Entry Barriers: Low

Highly fragmented
market with lack of
differentiation in
Entry Barriers: Low

servicesLow capital requirement easy credit

Low capital requirement easy credit
availability, low skills / qualification
availability, low skills / qualification
required and ease in obtaining
required and ease in obtaining license.
license.

Future Outlook
Growth
Drivers

Cost

Drivers

Macro
Drivers

Warehousing
Consumption driven sector like FMCG, Retail , Auto etc.
E-Commerce
Economies of scale
Operational efficiency key to maintain cost control
Receivables management
Economic reforms, Implementation of GST and
infrastructure investment: Logistics sector to be in
higher trajectory.
Ambitious Capex and expansion plans in current fiscal

11

THANK YOU