Agenda

• Indian Logistics sector– Introduction– Comparison to the other countries

• Road Logistics in India• Key players in Indian Road Logistics

– Ashok Layland– BLR Logistics India

• Key Issues faced by the road logistics in India– Network Connectivity– Travel time– Maintainance– Reliability

• Final word...

AGENDA

Quick Facts India is having second largest road network in the world.(3.83 million km) Road network carry nearly 65% of freight and 85% of passenger traffic Average speed on Indian highways is 30 km per hour, which is three times lower than the average

speed on highways in developed countries. Roads in India are divided into the following five categories:

National Highways (NH) State Highways (SH) Major District Roads (MDR) Other District Roads (ODR) Village Roads (VR)

National highways form only 2% of the total roads by length and carry about 40% of the traffic Out of total length of national highways:

27 % - single lane/intermediate lane 59 % - double-lane standard 14 % - four-lane/ six-lane/ eight lane standard

Introduction – Indian Road Logistics

Introduction – Indian Road Logistics Quick Facts

Share of Transport in India’s GDP Indian Road Network

Key players in Indian Road Logistics

Quick Facts

Introduction – Indian Road Logistics

Indian Road Network –Annual Growth Rate

Indian Road Logistics- Comparison

Road Logistics in India

Major National Highways Major State Highways

Golden Quadrilateral

The Golden Quadrilateral is a highway network connecting India's four largest metros : Delhi, Mumbai, Chennai, Kolkata

First phase of the National Highways Development Project .

The project aims of building 5,846 km (3,633 mi) of four/six lane express highways at a cost US$12.2 billion

Advantages:

Better and faster transport networks between many major cities and ports

Industrial and job development in smaller towns & villages

Road Logistics in India

One of the largest commercial vehicle manufacturers in India

with a turnover of US $ 2.5 billion Flagship of Hinduja Group, founded in 1948 ,headquarters

– Chennai, India Annual sales of about 60,000 vehicles and about 7,000 engines Manufacturing Facilities:

India ― Pantnagar- commercial vehicles― Alwar - assembly part with focus on passenger chasis― Bhandara - gearbox assembly― Hosur— diesel and CNG engines, axles, gearboxes― Ennore- axles, gearboxes

Czech Republic— Letnany - D-Line series of AVIA trucks UAE— Ras Al Khaimah – Bus production line

Key players in Indian Road Logistics

Joint Ventures Nissan Motor Company (Japan)-Light

Commercial Vehicles John Deere (USA) - Construction Equipment. Continental AG (Germany) – Design and

development of automotive Infotronics Alteams Group (Finnland) - Producing High

Pressure Die Casting (HPDC) aluminum components

Key players in Indian Road Logistics

Suppy Chain Management To maintain a highly capable and competitive supply base, focus is on:

Partnering best-in-class suppliers Conducting rigorous evaluation and improving supplier performance - measured on Quality, Cost, Logistics, Development and Management (QCLDM) Optimizing supplies in coordination with third party logistics (3PL) providers Vendor Development and Strategic Sourcing

Trucks

Light Vehicles

Defence Vehicles

Key players in Indian Road Logistics

• A Logistic company specializing in road transport has experience of more than 40 years on Indian roads.

• Has fleet of more than 500 different vehicles

• Has annual turnover of 250 crore rupees (equal to 50 million US Dollars)

• BLR provides services like –  Container Movement

– Full Truck Load (FTL) Transportation

– Less than Truck Load (LTL) Transportation

– 32 feet Containerized Vehicles

– Premium Car Transportation

– Hazardous Cargo Transportation

– 24hrs Surface Express

Reference http://www.blrlogistiks.com/services/transportation.html

Key players in Indian Road Logistics

• BLR has Fleet of different transport vehicles some of the variations are as below

– Hydraulic axels– Semi - Low Bed trailers– LCV’s– MCV’s– 32ft containerized vehicles (6 and ten wheels)– 28ft containerized vehicles– 12 wheel trucks, open and full body– Full Body Truck (18-20-22-24 ft)– Open Body / 24ft Container– Half Body, Open, 20ft Container Carrier– 20ft Container Carrier (only frame)– High Bed Trailer with frame (20 and 40 ft)– High Bed Trailer with platform (20 and 40 ft)– 44ft Low Bed Trailer– 20ft HQ Container

Reference http://www.blrlogistiks.com/services/transportation.html

Key players in Indian Road Logistics

Reference KPMG analysis

• Lack participation of private sector

• Network Connectivity

• Travel time

• Maintainance

• Reliability

Key Issues – Indian Road Logistics

Reference KPMG analysis

• High Co2 Emission

Key Issues – Indian Road Logistics

Reference KPMG analysis

Key Issues – Indian Road Logistics

Reference KPMG analysis

• Robust growth in road transport in recent years has been attained, But….– India’s logistical cost as a percentage of total production cost is about twice

the world average of 7%.– Estimated the economic losses from bad roads at anywhere up to Rs. 30,000

crore (4.2 billion EUR) a year, or around 1 to 2 percent of GDP each year– Out of total national highway length of 70,934 Km, it is estimated that only

14% is four lane

• Golden Quadrilateral project showing ray of hope

• About 50% FDI granted in Retail sector with mandatory investment in local infrastructure for the foreign investors.

Final word…