Transport Corporation of India startup story and case study

In India, TCI Freight, one of the main divisions of the TCI Group, is the leading provider of surface transportation services. Small packages and consignments, over-dimensional cargoes, project heavy hauling, and rail solutions are all available through the division, which is fully equipped to provide multimodal transport solutions for the cargo of any dimension or product segment, including FTL (Full Truck Load), LTL (Less than Truck Load), ODC (Over-dimensional Cargoes), PHH (Project Heavy Haul), and rail solutions.

In less than a decade, TCI has developed from a single truck operating on a single route to becoming India’s top comprehensive supply chain solutions provider, operating in over 100 countries. It is only through the collaboration of many different forces that a comprehensive solution may be achieved. Given the increasing specialisation and segmentation of services throughout time, customised solutions are becoming more important.

Its portfolio of services includes the complete gamut of supply chain services, from the point of origin to the point of ultimate delivery to the end consumer. TCI has been introducing new and innovative services continually since its inception. For maximum benefit to clients, all of the company’s services, which range from multi-modal transportation (road, rail, air, and sea) to express delivery solutions, freight forwarding and customs clearance, to warehouse management, are integrated into a single Customer Relationship Management system.

TCI Freight is capable of handling logistics for a wide range of cargo sizes and weights, ranging from huge equipment, autos, and heavy machinery to tiny packages. They are capable of delivering freight from any area in the globe to any location in the United States of America. In India, TCI Freight, one of the main divisions of the TCI Group, is the leading provider of surface transportation services.

The division is well prepared to offer multimodal transportation solutions for the cargo of any size or product category, including FTL (Full Truck Load), LTL (Less than Truck Load), small packages and consignments, ODC (Over dimensional Cargoes), and PHH (Personal Handling Hours) (Project Heavy Haul). TCI Freight is capable of handling logistics for a wide range of cargo sizes and weights, ranging from huge equipment, autos, and heavy machinery to tiny packages. They are capable of delivering freight to any location in the United States.

Industry Overview

Who is TCI

While relocating to a new residence, it is not only the actual moving process that is stressful and tough to manage, but also the plethora of choices that must be made before, during, and after the relocation. Before starting to pack, the most important choice you must make is whether you will move or hire a professional moving company?

The sole reason many avoid hiring specialists is because of the high cost of packers and movers, as well as the belief that they would save more money if they do the relocation themselves. Although the advantages of hiring professional movers, the time and effort required to secure home belongings, and the extra expenses associated with replacing or repairing damaged things are all taken into account before making this choice, many people do not.

When you employ movers to relocate your home, you must do a significant amount of preparation before selecting the most appropriate moving firm. All of the details of your relocation will be handled by the movers, including when to pack, how to transport your belongings from point A to point B, loading and unloading your belongings, and unpacking and organising your belongings when they arrive at their destination. With the whole of your relocation planned and ready for execution, you can devote your full attention to the other tasks that need your full attention.

Founder

N. Agarwal has over 40 years of extensive expertise in a variety of businesses, including the logistics industry. Mr Agarwal is also the Chairman of Bhoruka Gases Ltd and Bhoruka Power Corporation Ltd, in addition to serving on the boards of Kirloskar Electric Co. Ltd and Iruppa Power Pvt Ltd. Mr Agarwal has also served on the boards of many other companies. He also serves on the board of directors of the Indian Institute of Management Bangalore. Besides being a Davenport College of Business alumnus with honours in management, Mr.

Agarwal also possesses an Advanced Management Program (AMP) degree from Harvard Business School in the United States of America. To relocate by yourself, you would need to purchase a large amount of packing material as well as carton boxes to fit all of your belongings. Furthermore, since you lack the requisite competence to carry and move big goods, the likelihood of damaging your belongings increases, and you may harm yourself in the process. Rather than putting yourself through all of the pain and cost, you can engage specialists to execute the work quickly and efficiently while guaranteeing total protection for you and your belongings.

Startup story

In keeping with the goal of ‘equality and a better living for all people,’ the TCI Foundation, which is the social arm of the Transport Corporation of India (TCI), is dedicated to serving the country. The Foundation is at the forefront of efforts to help and aid communities in India, particularly those who are less fortunate, through facilitating health services, education, community development, and sports development. It is responsible for the operation of 22 healthcare institutions in 11 Indian states for the underserved community.

industry size and coordination

Business strategies that are built on aggregation and asset lightness, as well as partnership approaches, will be among the most successful in the next years. While asset-light models seem to be a simple entry point, the partnering asset owners (such as a car or warehouse owner) often form a partnership with the asset-light model. Only established players are allowed to participate. As a result, asset-light model aggregators have a built-in competitive advantage. with the use of high entrance barriers Truck drivers (particularly small FTL operators) and general contractors. Because the owners continue to suffer from low pricing power in India. This reinforces our preference for 3PL and road express players that operate on an asset-based basis. Model-based on light and aggregation.Technology will be a crucial facilitator in the expansion of the 3PL sector, and it can transform the industry.success or failure, it may turn out to be a distinguishing element between the two.

The environment in which businesses compete with 3PL players includes anchor and non-anchor based 3PL players, as well as those that are only focused on e-commerce (growing at 30 per cent plus). Based on our patented methodology, which assesses a variety of factors,They expect that anchor-based (captive) firms such as Mahindra Logistics and Future Retail would be successful.Supply Chain and TVS Logistics are well-positioned to benefit from the rise of the third-party logistics (3PL) sector in the next years.sales CAGR of 16-18 per cent over a five-to-seven-year period.

TCI Transport Corporation of India charges

With a ‘BUY’ recommendation and a target price of INR640, we begin coverage onthe major third-party logistics (3PL) firms in India, with around 60% of its business coming from its anchor customer, the Mahindra Group. As a result of the following factors: 1) MLL is one of the best-positioned plays in the high-growth 3PL space, and it possesses the necessary strategic attributes to continue outpacing industry growth; 2)

we expect the 3PL sector to continue to post 17- 18 per cent CAGR due to the strong demand drivers and enablers; and 3) high earnings growth momentum is expected to sustain (31 per cent EPS CAGR over FY18-21), which provides strong fundamental backing to current valuation levels. The following are the primary negative risks to our thesis: a slower-than-expected implementation of GST, an increase in gasoline prices, a devaluation of the Indian rupee, and the emergence of disruptive technology-based competing models.

Subsidiaries

The use of shared storage software reduces downtime since data is not reliant on the availability of computational resources, resulting in less downtime overall. The degradation of a server component doesn’t impact the data itself. Additional high availability (HA) may be obtained by transferring (or powering up) virtual machines from a failing physical server to another server, with the VM accessing its most recent data, which was saved on a shared storage area, to achieve high availability (as visualised above).

Higher Performance Levels — Shared storage solutions are intended to handle even the most stringent storage requirements by providing ultra-fast I/O speeds and low latency, increasingly with all-SSD levels of performance, as well as high levels of availability.

Specialization

Because of India’s wide geography and dependence on costly road transportation, the transportation industry accounts for 60-65 per cent of the country’s logistics expenditures, according to the World Bank. Carrying costs account for 80-90 per cent of the remaining total inventory and carrying cost expenditures, with the remaining 10 per cent being spent on warehousing and storage. Indian transportation accounts for a larger proportion of GDP than it does internationally, owing to the prevalence of costly road transit.
warehousing storage

heavy fleet collection

The road system dominates the transportation industry. The proportion of road transportation in overall transportation modes. The proportion of mix at 75% (based on volume) is much greater than in other nations.Rail transport is largely employed for the transportation of bulk commodities (coal accounts for about 40% of total rail transport).the entire amount of freight earned). While Indian Railways maintains a monopoly on rail transit, private companies compete with it.Container transportation is the sole mode of transportation where players are authorised. In addition, in the road transportation sector,The Full Truck Load (FTL) category has a low barrier to entry, a poor profit, and is extremely competitive.

The surface express freight market with greater margins and specialised services (USD2 billion) is still in a growth phase.This is an early stage.The road FLT sector is dominated by unorganised players, mostly as a result of the lack of regulations.The nature of the company, which entails the transportation of a full cargo As a consequence, a large number of truck drivershave obtained ownership of their vehicles or smaller fleets In contrast, the surface expresses itself differently.It is necessary to have a section with a substantial network. As a consequence, the majority of the area is taken up by the market is dominated by organised players, with the top six accounting for roughly half of the market.
all India networking

Charity

Carrying costs account for about 90 per cent of the overall inventory-related costs. In the storage and warehousing area, industrial warehousing is the most significant sub-segment in terms of both value and space. Cold chain warehousing, on the other hand, is predicted to be the fastest increasing industry in the next years. Historically, industrial storage has been controlled by unorganized local players, much like road freight transportation. Because of land acquisition concerns, there hasn’t been a single national player in India. Furthermore, historically, the emphasis has been on cost rather than on the overall quality of service. Recently, though, this has begun to change.
Challenges

Reduced transportation time: On average, a truck in India travels 50,000-60,000 kilometers per year, compared to 300,000 kilometers per year. In addition to impacting total production and logistics time, interstate border checkpoints, which were responsible for inspecting products and ensuring indirect tax compliance, were also a source of frustration for truck drivers, accounting for around 60% of their transit time. The turnaround time has been reduced by a significant amount (between 18 and 20 per cent).

Over dimensional cargo

To take advantage of tax breaks, firms-maintained warehouses in several states under the former tax scheme. The number of warehouses has already begun to decline as a result of the adoption of the Goods and Services Tax. Small state warehouses are being phased out in favour of huge regional warehouses as a consequence of this consolidation in the business. This move will be further aided by the logistics sector being accorded infrastructure status, which will allow for more favourable finance arrangements to be made accessible. According to Knight Frank, warehouse consolidation has also lowered inventory levels by around 30% when compared to the pre-GST period, increasing reliance on third-party logistics providers as the sector transitions to lower inventory operating models.

Conclusion

TCI Group’s real estate arm was established to oversee the development of commercial properties. TCI has been providing complete logistics solutions, ranging from inbound transportation from suppliers across India and other countries to outbound transportation of complete built units (CBU) and spares