FROM THE DESK OF VICE CHAIRMAN
& MANAGING DIRECTOR
We start the New Year with an optimistic report of The Organisation for Economic
Cooperation and Development (OECD) claiming that India is now the world`s third-largest
economy in purchasing-power-parity (PPP) terms.
Though many factors could have contributed towards the recognition, however I believe
the prime reason is that of acceleration in industrial production and changes in
consumption patterns that led to a high demand for basic and specialised logistics
management. The demand has been fuelled by the growth of industries such as automobiles,
aviation, consumer packaged goods, hi-tech, telecom, defense and retail, amongst others.
Besides, the entry of multinational companies (MNCs) in sourcing, manufacturing and
distributing are other growth drivers. As per the World Bank, Indian economy would grow by
6.1 per cent in 2013-14 on account of robust domestic demand, strong savings and
However, despite the positive outlook on the economy, 2012-13 has not been an eventful
year for the logistics industry, partly affected by the impact of the slowdown in the
country`s economic growth. Although the logistics industry is a critical enabler of supply
chain, the sector`s growth has not kept pace with India`s wider economy, thanks to
Intra-State border issues, cumbersome documentation, bureaucracy and low average trucking
speed on account of the poor quality of the country`s road network. Add to this, the below
satisfactory development of logistics parks, warehousing and other support infrastructure,
and we have the biggest challenge to increase efficiencies and become more cost-effective,
thereby increasing India`s overall cost arbitrage.
TCI as India`s leading integrated supply chain and express solutions provider, has
shown remarkable resilience and has responded well to the challenges by recording a modest
growth across all its divisions except the Freight Division which got affected due to
fluctuating transporting costs attributed to low industrial production and frequent rise
in fuel prices. TCI is among the few companies in India to achieve A1+ ratings from ICRA
on short term borrowings and AA- from CRISIL on long-term borrowings that encourages
benchmarking against other companies and reassuring faith among investors.
TCI constantly nurtures its responsibility as a committed corporate citizen by
Corporate Social Responsibility as an integral part of its business plan. Through its CSR
venture, TCI Foundation (TCIF) is making a meaningful contribution in the areas of Health,
Disability and Education. TCIF has set up schools and dispensaries for the deprived
sections of the society, besides rendering support in forming self help groups for woman
and child development programmes. TCIF is also active in the area of disaster relief
assistance and AIDS education & intervention. TCI is partnering with CBSE to offer a
10+2 vocational course on Transport System and Management.
TCI is positioning itself to meet the future demand growth and marketing needs which
will be driven by higher capacity utilisation, expanded customer reach, focus on working
capital rationalisation & various initiatives for increasing productivity.
As we tread into the next phase of our growth, we continue to strengthen our leadership
position in the Indian logistics industry. We would like to reiterate that though our eyes
are always set on the next benchmark, milestone and innovation, our feet are firmly held
to the ground, based on core fundamentals, values and ethics.
D P Agarwal
Vice Chairman & Managing Director