INTRODUCTION

Gati limited was a leader in the Express Cargo

movement and a pioneer in Distribution and Supply Chain Management solutions in India. Gati limited was incorporated on April 25th,1995 with its registered office at Secunderabad. Gati offered a spectrum of services that were costefficient and flexible.

Business Segments
Logistic:- Gati provides customised solutions by

The company operated in three different business segments namely,

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.

Products and Services of Gati Ltd.

Gati Express
Gati Priority Gati Zipp

Gati Warehousing
Gati saver Gati coast to coast Gati international Gati value added services

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.

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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 . vehicles fleet covered over 3.20 lakhs km everyday.

It handles over 24000 dockets daily, its 2000- strong

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. 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 Gatis 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. 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 companys operational dynamics and enabled high performance to get on a fast track growth route and reach their deserving responsibility levels through special assessment centers .

The re-visit of the promotion policy opened a

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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 .

Operations
Gati certified for design, marketing and providing cargo

management services and logistics solution . Gati established modern state-of-art warehouses at Gurgaon, Ludhiana, Jaipur, 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.

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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-todoor pick up and delivery for sensitive sub-load cargo. the product provide a wide reach through multimodal 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 costeffective 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 . Gatis priority is to work toward personalized and innovative services

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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

Organised 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 Ecommerce 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 Sector
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

Unorganized 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.

Other Major Players

Blue Dart
DTDC Couriers & Cargo Ltd. CONCOR

EMS Speed Post

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.

Strenghts
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.

Weakness
Dominance of Blue Dart in the domestic air cargo industry. We expect Gati to face strong competition from Blue Dart in the domestic air cargo business.
Freight expenses account for a majority of Gati's operating expenses. A further increase in Gati's freight expenses, with an increase in fuel costs, could potentially lead to further contraction in margins.

Oppurtunities
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.
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..

Threats
A rise in fuel charges could have an adverse impact on margins, which are already low for the company.
An economic slowdown could impact the logistics industry as a whole. Significant investments involved in the setting up of warehouses and building of vessels - capitalintensive industry.

Market Share
Logistic: Growth of 22.47%.
Shipping: This segments 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.

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.