Maintaining the growth momentum and expanding operations in the former capital of India is like asking for the moon. But there are some chivalrous businessmen in Kolkata who are dreaming big despite various odds.
We met one such visionary, Mr. Anurag Agarwal, from City Services, who believes in taking a firm control on the flow of Eastern India’s bus transport industry. Established in 1979, City Services has grown and developed to maintain a prominent position and reputation as a creative logistics company. Working as a contract carrier for numerous schools, institutions, travel operators and MNCs, the 35+year old company is known for its excellent track record of safety, maintenance and servicing of its buses. Apart from running its own fleet of buses, the South Kolkata-based firm is also having hired buses sourced from associate partners. Currently, there are more than 1,500 employees, including 550 drivers and 500 women, on its rolls.
To get a further understanding of the company’s business model, MOTORINDIA caught up with Mr. Agarwal who also happens to be the Director of the company. He stated: “Initially we were concentrating on school buses and were running our business by the name of ‘Urban Services’. That is still our core competency, and we have tied up with major schools in Kolkata. The company under City Services was started by me when I stepped in as a second generation entrepreneur in 1988. Then I was 18 years old. Our business started booming only in 1998 when we received an unprecedented number orders for buses. As our presence is well-ensconced, we literally have no competitors here. Despite an influx of new players, our order books have not reduced as we are regularly bagging contracts with schools, travel agents and offices.”
It is to be mentioned here that City Services is presently carrying almost 25,000 students and staff members of different schools and offices with a fleet of over 750 buses, of which 550 are its own and the rest sourced from a group of devoted associates. Currently 60 per cent of its fleet is air-conditioned. The percentage figure may go up to 75 when it ramps up its portfolio. It has bought buses from Tata Motors, Swaraj Mazda (now SML Isuzu), Ashok Leyland and Eicher. Its association with Volvo began only three years back and there are around 10-12 vehicles earmarked for inter-city routes like the Calcutta-Durgapur and Asansol under the brand name “Greenline”.
Mr. Agarwal stated that, however, Tata Motors has a very good resale value in Eastern India and will remain its major client as far as addition of fleet is concerned.
Like other service operators, City Services also sources chassis from OEMs and gets them fabricated from various body builders. Its product portfolio comprises both tourist air-conditioned and non-air conditioned coaches catering to major hotels and travel agents of within Kolkata and outside. Furthermore, its AC and non-AC buses have a fixed clientele of tourists coming from Japan, Thailand and Burma, basically Buddhist and Italian pilgrims. Its buses are also booked by BCCI to cater to both the Indian and the visiting cricket teams, as also the teams of IPL and ISL.
Taking us to the journey so far, Mr. Agarwal stated: “We had 15 buses when my father started it and all of them were second-hand Bedford buses which were later refurbished by us. But now we have been allying with recognized body-builders such as and Suraj Automobiles and BIPL from Jamshedpur and H.K. Industries from Kolkata. For the last three years, we have been sourcing extensively from a Delhi & Haryana-based company called PMI, an OEM of Tata Motors, and have ordered for 50 buses this year. We will tie up only with accredited fabricators and usually order in bulk of 15-20 buses. We have also sourced quite a few buses from JCBL.”
Talking about some of the key propositions that have ensured that City Services is at the forefront in its industry, Mr. Agarwal observed: “We are built upon commitment and goodwill, value reflected throughout the work process. Each client and every job is new challenge for us, and we take good care in the way services are provided to them. We have an in-house garage for repairs and maintenance and a committed team of personnel with a motive to serve before self. Our buses and drivers are equipped with modern gadgets to monitor them on and off the routes.”
Mr. Agarwal also disclosed that going forward there will more direct purchase from OEMs, including from new players like Scania, BharatBenz, etc. “Yes, we are open to that provided they (OEMs) customize the vehicles according to our needs. And I do look forward to sourcing such vehicles from OEMs in bulk, as that is the current trend across the country. Moreover, getting it fabricated from body builders makes it difficult. So it’s better to buy an OEM-branded vehicle in one shot rather than sourcing the chassis and getting it fabricated thereafter. As far as new players are concerned, Volvo is the most-sought-after brand here (for inter-city routes). But if the numbers shoot up in the East (India), they (OEMs) will definitely focus on this market. And then we will definitely go for such buses. We are counting on the development of roads connecting to places like Siliguri,” affirmed Mr. Agarwal.
However, he categorically said that City Services would never venture into intra-city bus services.
Referring to its future course of action, Mr. Agarwal stated: “We will also be revamping our line-up as our customers are demanding air suspension for enhanced comfort, high-end buses equipped with LEDs, Wi-Fi, etc. Moreover, we also see some green shoots as diesel prices have come down. The Central Government is getting proactive with road development, and the tourism sector is also getting a major boost. A lot of MNCs are setting up base, which will give an impetus to our staff transportation business. We are already working with Wipro, Infosys, TCS, Cognizant, EPCOS Ferrites, Capgemini, Macnally Bharat Engineering Ltd., etc.”
However, the journey won’t be that smooth for the company as there will be multiple potholes to be surmounted as Mr. Agarwal rightly pointed out: “There are various unscrupulous body builders sticking a fake OEM badge and selling it as a factory-fitted vehicle. Another big challenge is that we have to pay huge sales tax once we buy the vehicle. We are hopeful of the new GST coming into effect at the earliest. Of course, (the existing) road infrastructure is our biggest challenge. Paucity of skilled drivers is another serious issue as there are no proper institutes to train them. On top of that, helpers are virtually non-existent here.”
Despite all the challenges and obstacles, City Services is confident of achieving a sustained growth in its topline. Last year, it clocked a turnover of Rs. 60-65 crores and is aiming for Rs. 80 crores this year and Rs. 100 crores by FY 2016-17. Plans are afoot to open an office at Durgapur and go for online booking in April.
“Our vision is to build long-term relationships with our customers and clients and provide exceptional customer services by pursuing business through service, quality and advanced technology. We believe in streamlining our operations through innovation and training. We work with the aim of providing a dedicated, improved and sincere transport service to our clients. We cater with devotion, punctuality and a modern fleet of both fully air-conditioned and non-air conditioned buses to retain our position as the best private bus operator in Eastern India,” concluded Mr. Agarwal.