GATI LIMITED

has been submitted in partial fulfillment of the PGDM course, 4th

Trimester of PGDM Program at “ Jaipuria institute of
management”
by the members of Group -05
Sandeep - PGMF0918
Sanjay - PGMF0920
Sangram -PGMF0919

Shubham -PGMF0921

Prof. S. Goswami
(Faculty: Strategy And Strategy
 Overview
 Gati ltd. Was incroprated on 25th April,1995 with its
registered office at Secunderabad.

 It is a leading domestic express cargo company with

a pan-India distribution network offering multi-modal
connectivity (road, rail, air and sea) and end-to-end
logistics solutions.
Mr. K.L Chugh
 The focus is on integrated logistics solutions. Gati's
transport infrastructure, IT systems, cutting - edge
technology solutions and an intensive knowledge of
India allows it to tailor its products to meet every
customers' unique needs.

 Gati offers a wide range of options and does not

waver in its focus on quality, reliability and speed.
 Vision and Mission
 Be the leader in Asia pacific and a globally
preferred provider of India-centric Supply Chain
services and solutions.
 Delight the Customer with quality service by
setting new trends through innovation and
technology.
 Be the most preferred organization for all it’s
stakeholders.
 Be a responsible corporate citizen with
unwavering commitment to environmental
protection and conservation.
 Core Values
 To be ethical, integrated and transparent in our leadership.
 To respect and treat with value the enquiries of others.
 To be caring and abundant in giving support and services
to others.
 To balance the body and mind ,and ‘people serve people’
in good spirit.
 In keeping with Indian culture and attitude,never say ‘no’
to service a customer.
 To be a responsible corporate citizen and remain
committed to the cause conservation.
Milestones
 1996:Tied-up with Indian Airlines to facilitate speedier
delivery of shipments.
 1997:ntroduced the concept of 3rd party logistics (3PL).
 1999: Gati develop the infrastructure to enter the
international cargo segment.
 2003: Gati took up a pioneering initiative in further
strengthening it’s internal communication process with
the help of oracle software. Gati@web: was designed to
simplify the internal process.
 2004: Introduced mechanized racking systems in the
automated warehouse at Panvel, Maharashtra.
 2005:State-of-the-art Mechantronic warehouses with APL
racking and modern handling equipment in major cities
across India.
 2006: Launched Gati Student Express and Online
Employee Information System and Performance
Management System introduced.
 2007: Strategic alliance with China Railway Express
International Logistics Co. Ltd.
 Launched a joint Courier and Air Cargo Service with Air
India.
 Introduced VTS (Vehicle Tracking System)
 2008:Strategic Alliance with GLS (General Logistics
Systems) Europe's Parcel Leader.
 Launched Gati Europe Express.
 Introduced e-POD (Electronic Proof of Delivery) and
Centralized POD Cell.
 2009:Launched Gati Academy
 Launched Gati Art Express
 Introduced SQS (Service Quality Standardization)
Core Business Segments

 Logistic:- Gati provides customised solutions by

integrating all the four stages of your business —
procurement, production, distribution, after sales
service and reverse logistics.
 Shipping:- Shipping division “GATI” coast to coast
engaged in costal shipping as well as to Yangon
(Myanmar) & Andaman & Nicobar Island.
 Fuel Stations:- Operates 5 fuel stations situated at
Bangolore, Belgaum, Indore, Shadnagar, chhatar
(karnataka). In the fuel station segment, Gati traded
in petroleum and lubricants, suppling to several
pumps in Karnataka, AP, MP on behalf of Oil majors.
Value Added Services in India
Gati's bouquet of value added services are designed to take
care of your business needs:-
 FOD (Freight-on-delivery): Option of paying at the time of
delivery.
 COD (Cash-on-delivery): Collection of cash against delivery
from your customer and remitting it to you online through e-
banking.
 DOD (Draft/Cheque-on-delivery): Collection of draft/cheque
on your behalf at the time of delivery.
 Inbound Rate Agreement: Ensures hassle-free, convenient
supplies from your vendors. Also gives you the advantage
of dealing with one company at agreed rates.
Continued..
 Documentation Assistance: Information on forms, permits,
legal/statutory requirements including clearance of check
posts.
 Holiday & Sunday Pick-up/Delivery: At Gati, we are sensitive
to your urgent delivery commitments which is why we
provide the option for pick-up and deliveries on
Sundays/holidays.
 Octroi Clearing Facility: Octroi clearance on behalf of
customers.
 Tamper-proof packing: Special bags for safe handling of
high value cargo
 Fragile goods packaging: Gati offers packaging solutions for
fragile goods like marble statues and glassware.
Industry where Gati excel
 Consumer goods
 Engineering / electronics
 Industrial goods
 Healthcare / life sciences
 Computer and IT peripherals
 Retail
 Fashion and garments
 Automotives
 Tactical and confidential projects
 Infrastructure
 Gati is spread across 427 locations in India and has overseas offices in Sri
Lanka, Nepal , Hong Kong , Singapore, and China. The infrastructure consist of a
vast network of offices and franchises in India, it has five zonal offices, 61 express
centers, 109 depots ,160 franchisees, 54 customer convenience centers, 20
surface transit centers ,19 air transit centers , 5 rail transit centers, 3827 extra
service station and 27 modern warehouses spread out of 590 districts in the
country.

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

 The company aims to be one- stop service provider in logistics solutions ,

focusing on warehousing and infrastructure , distribution centers ,central
distribution center , Information technology and human resources .
 Technology
 Gati Technology Systems is a leading Software Company in India. it is a
proactive organization providing complete and customized software solution,
Internet Technology Solution and content development services.
It's main line of activity is to develop customized application software covering
the entire responsibility of performing the initial system study, design,
development, implementation and training .

 Gati website was inaugurated in 2002 which aims at rendering better services to
customers through which they can download information, lodge complaints
outlines and track its status, check price and transit time for shipment of any
Gati’s service.this implementation helped Gati to work pro-actively and provide
high level of customer satisfaction through reverse flow of information through
the website e-mail, SMS and toll free no.
 Human Resources

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

 The re-visit of the promotion policy opened a transparent career development map for all
employees of Gati especially those on the ‘fast track'. the revised promotion policy –
‘branded talent for tomorrow’ was based on careful diagnosis of the company’s operational
dynamics and enabled high performance to get on a ‘fast track ‘ growth route and reach
their deserving responsibility levels through special assessment centers .

 Employees were informed of their strength and weaknesses at development centers and
advised on suitable means to develop themselves. the company attached great
importance to equip every employee and business partner with the right functional
competencies in their job .
 Operation
 Gati certified for design, marketing and providing cargo management services and
logistics solution . Gati established modern state-of-art warehouses at Gurgaon,
Ludhiana, Jaipu r,Indore, Kolkata and Pondicherry with multi-level stacking features for
effectively space utilization. Equipped with stackers ,forklifts ,cage lifts etc , they also
offers several benefits and services like online inventory control and monitoring , flexible
hiring options and billing/data collection.

 In Sept. 2004 Gati entered into a special tie-up with India airlines and launched Gati
gold and Gati silver for speedy air delivery of time-sensitive consignments at several
major airports in India. this was a door-to-door pick – up and delivery for sensitive sub-
load cargo. the product provide a wide reach through multi-modal connectivity.

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

 Gati marketing strategy aimed at attracting new customer and retaining old
ones. The clients of Gati included Hitachi , Pantaloon, Ford and Ranbaxy. A
series of activities were involved to serve the customers and make them long
term clients.
The dynamic market is constantly evolving and customers expectations were
on rise . Gati’s priority is to work toward personalized and innovative services in
order to build an everlasting relationship with customers.

 The company took several internal and external initiatives in this regard including
changes in people and process. Management believes that the foundation of
any successful business is only as strong as the degree of customer satisfaction
.
Gati made it a primary responsibility to understand customers thoroughly and
delight them in the best manner possible
Integrated Logistic
 Gati provides customised solutions by
integrating all the four stages of your business
— procurement, production, distribution, after
sales service and reverse logistics.
 Gati offers its services as a 3PL or a third party
logistics provider. A 3PL provider allows a
company to-
 Concentrate on core competencies
 Create greater competitive flexibility and release
working capital
 Get lean and agile
 Exploit the better know - how and scale efficiencies
of logistics companies
Emerging challenges
 In the express industry space was a perishable Item.
The limitation with regard to availability of space was the
foremost challenge faced by the industry.
 Direct competition from unorganized sector player and
freight forwarders operating on lower profit margin was
another challenge faced by the industry where in a
collective approach could bing back the collective
services.
 Due to liberalization of Indian economy and integration of
International trade increases customer requirement and
sacling up of operation lead to heavy investment by the
express industry in infrastructure setup, hub and new
technology.
 Organized sector
 This sector comprise national and international express
service with fully equipped infrastructure and other value
added services.
 The last service provider were technology driven companies
with major emphasis on customer service and speed.
 With the development of Just in time and E-commerce there
was a sizeable business opportunity for web-enabled
services: Convenience, Reliability and Speed were the
growth drivers.
 Tracking services were offered by most of the organized
sector player.
 The organized sector was mostly into the package segment
of the cargo management business.
 Semi-organised
 The semi-organized sector comprised players operating
within a limited geographical area.
 Such companies generally had their own network of branches
and franchises in the region in which they operated.
 However, Such companies did not have their own distribution
network, and relied on the network of other similar companies
in various location or acted as a wholesaler to organize
sector companies.
 The semi-organized and unorganized players were mainly
characterized by high volume business and were operated on
price advantages.
 Unorganised Sector
 Un-organised sector comprised companies, which had
restricted operation within the boundaries of a particular
city( intra-city couriers).
 Such companies were found in metropolitan and urban
cities and had one or more branches in those cities.
 The delivery schedules were based on the urgency of
the consignments.
 Operated on economies of scale where large companies
catered to the higher business volume.
 This sector thrived on price and was unable to keep
pace with the market in terms of reliability and
timeliness.
 Gati International
 Gati pioneered the cargo management movement in India. And
then spread its wings over the sub - continent. The logistics leader
is now making its presence felt in the SAARC countries and the
Asia Pacific region.
 Gati International, the global operations wing, provides us with a
strategic USP — an international reach, along with a highly
focused expertise in India - centric operations. This ensures that
Gati remains the undisputed leader not just in Indian operations,
but also in India - focused operations.
 They have offices in Singapore, Hong Kong, China and Sri Lanka
which offer a range of distribution solutions to and from India
 Gati takes care of the hassles of pick up, customs clearance and
delivery of freight and cargo.
 Services offered include inbound air / sea movement and
outbound air / sea movement, along with:

 Strategic tie - ups with global players

 Same day connection
 Online track and trace facility
 Consignee and consignor nominated freight terms
 Door to door service
 Door to airport / port service
 Airport / port to airport / port service
 Airport / port to door service
 Customs clearance service
 Bonded storage service
 Assured space for air shipments
 Break - bulk and container services
Gati International offers the
following services:
 Freight forwarding —- air and ocean —-
to and from worldwide locations
 Customs clearance — air and ocean —
inbound and
 Outbound International courier — to and
from worldwide locations
 Cross-border trucking
Corporate social responsibilty
initiatives
 Maye village, Bhuj district, Gujarat.
 Gati Government School, Hyderabad,
Andhra Pradesh.
 Tsunami relief fund.
 MC High School, Nagore, Tamil Nadu
competitor

COMPANY Company Symbol

 Gati Ltd. GATI LTD
 Blue Dart Express Ltd. BLUEDA
 Corporate Couriers & Cargo Ltd. CORCOU
 Elbee Services Ltd. ELBSER
 Patel Onboard Couriers Ltd. PATONB
 Skypak Service Specialist Ltd. SKYSER
Valuable Clients
 Strength
 Dominant player in the surface cargo segment in India, which accounts
for more than 55% of the total volume of cargo moved.
 Entry into the coveted cold-chain logistics business through the
acquisition of Kausar India, which has a fleet of 99 refrigerated vehicles.
 JV pact with Air India Cargo involving leasing up to five freighter aircraft
in FY08. The company aims togain 11% market share in the Indian
domestic air cargo industry by December 2008 and 20% by June 2009.
 Agreement with Indian Airlines to develop a joint product called IC - Zipp
to leverage the growth in theretail courier market. This product will cover
the high-value courier segment and the company expects it tocontribute
towards business growth both nationally and internationally.
 Weekness Threat
 Dominance of Blue Dart in  A rise in fuel charges could
the domestic air cargo have an adverse impact on
industry. We expect Gati to margins, which are already
face strong competition low for the company.
from Blue Dart in the  An economic slowdown
domestic air cargo could impact the logistics
business. industry as a whole.
 Freight expenses account  Significant investments
for a majority of Gati's involved in the setting up of
operating expenses. A warehouses and building of
further increase in Gati's vessels - capital-intensive
freight expenses, with an industry.
increase in fuel costs, could
potentially lead to further
contraction in margins.
 Opportunity
 Strong macroeconomic growth, robust growth in trade driving the growth of the Indian express
industry.The industry was valued at Rs71 bn in 2005-06 and has grown in the range of 25%-
30% over the past 3-4 years. We expect the industry to register a similar growth rate over the
next few years.
 Exemption of interstate sourcing from VAT will make having centralized large warehouses
more viable for companies than having local sourcing and distribution. We expect most Indian
companies to outsource the warehousing function, creating a potentially attractive market for
3PL providers.
 Entry of a large number of global retailers would require efficient and cost-effective supply
chain solutions and 3PL and 4PL logistics solutions within the country. With the retail sector in
India spending approximately Rs30 bn on JIT, companies like Gati stand to benefit.
 Improvement in the logistics infrastructure in the country - the dedicated rail freight corridor,
modernization of ports, and improvement in road infrastructure are set to give a boost to intra-
state and interstate freight movement.
 The company is re-engineering its network by eliminating the local storage function. It plans to
have 1 CDC at Nagpur and 19 EDCs spread across the country. This is expected to result in
substantial savings in operational expenses and lead to margin expansion.
Market share

 Logistic: Growth of 22.47%.

 Shipping: This segment’s growth is 11%.
 Fuel station: Growth by 18% where as
Rising fuel price effected growth by 4%.
 Gati turnover was 70% from logistic, 7%
from shipping and 23% from fuel station
divisions.
Financial Overview
 Phased Expansion L- Low
M- Medium
H- High

H
Strategy Increase the business
of B2C (Courier).

Globalization
Company profile

Grow slowly Promotion Worldwide

M

Withdraw

L M H
Industry Attractiveness
Strategy
 Gati limited has hybrid strategy of differentiation
and cost-leadership.
 Strengthening the market standing, Brand
Positioning, Build on Core Competencies and
continue to enjoy the loyalty of customer results
in steady growth and value creation.
 To position the company to focus on IT, Process
Improvement, Cost management and
establishment of state of art warehouse.
 It proactively re-engineered its warehousing
infrastructure and made its operation more
mechanized, thereby reducing operational cost.
Pricing strategy
 GATI can be classified based on their general
pricing strategy. GATI must decide whether
their approach is to use price as a competitive
advantage or to seek competitive advantage in
non-price ways.

 Discount Pricing –
 Competitive Pricing –
 Full Price Pricing
Thank you..