Completing a successful decade of car carrier business with consistent growth year-over-year, DGRC is sure-footed to grow in a better pace way ahead of what market cycles, with prior planning, positive thinking, and technology adoption.
This year marks the tenth anniversary of DGRC, an associate company of Delhi Gujarat Fleet Carrier (DGFC) located in Samalkha, Delhi NCR. The company was established in 2009 dedicatedly for trucking-based automotive logistics, starting with two-wheeler haulage for Hero Honda and Bajaj Auto. Later in 2014, the firm engaged passenger cars haulage as well. With strong presence across all regions of the country with 36 branches, DGRC is offering automotive logistics solutions to leading car makers including Hero MotorCorp, Honda Two-Wheelers, Maruti Suzuki, Hyundai, Nissan, and so on, along with Volkswagen and Mahindra under DGFC moniker.
Managing partner of the DGRC, Ms. Kajal Kapoor, is beaming with pride, especially in the way her company has grown in the last ten years and expanded its client base and volume it handles in automobile logistics. “We are growing since day one, registering an average growth rate of about 25 per cent every year, in spite of market cycles and regulatory challenges”, she says. The company has registered a turnover of Rs. 150 crores in FY 2018-19. “Our ultimate aim is to grow in a better pace to achieve an turnover of Rs. 190 crores in the upcoming years”, she adds.
Performance factor
DGRC is currently operating a fully-owned fleet of 404 trucks, which consists of 242 car carriers (including 40 rigid-axle carriers) and 162 trucks for hauling two-wheelers, in addition to an attached fleet size of 70 trucks. A majority of its fleet is made up of tractors from Tata Motors and BharatBenz, and car carrier trailers sourced from Seamless Autotech. The company says that its entire trailer fleet became CMVR-compliant as soon as the legislation was gazetted in 2016.
“We are very particular not to compromise on the ability and efficiency of our fleet, hence we invest on quality products that are both reliable and value-for-money”, said Mr. Ashok Dhingra, a partner at DGRC, and MD of DGFC. For transporters, he added, there were no negative impacts as such due to the CMVR length regulation for car carriers, as freight rates were consecutively revised in such a way that it is mutually bearable for OEMs as well.
“In this industry, rates are reasonable and manageable with clients, although the inadvertent drop in passenger car sales in the domestic market is acting as a mood breaker for automotive logistics”, observed Mr. Dhingra. DGRC engages in long-term contracts with the automakers, although subject to renewals depending on the performance of the company. “Clients in this business value transporters’ performance than anything else, may it be in terms of timely delivery, zero-damage, or serving their unique needs with customised solutions”, he said.
Technology and digitization
The company doesn’t find managing return loads for trips a major issue for car carriers. “Every transporter aims to maximise the fleet utilization is best way they can. We at DGRC have devised circles of routes across different automotive regions in India, by which we can consolidate the loads available and manage their flow across regions”, said Ms. Kapoor. She added that by integrating technology and digitization into various operational process, a significant improvement in productivity of fleet with reduced ‘idle time’ and delivery time was realised, while also ensuring cost efficiency.
DGRC has effected various initiative in going cashless and integrating various data through an LMS software and ERP system. “Car Carriers have to modernise their operations, as digitization of processes reduced man power and engenders effectiveness of resources”, noted Mr. Dhingra. While adding that adapting to new opportunities and challenges is the need of the hour, he revealed that DGFC is planning to enter into rail-based auto logistics by the end of next year, for which ways and means are being worked out.
“Railways logistics is rapidly growing and is becoming cost-effective for long hauls. If that’s the direction the industry is moving, we got to shift”, said Mr. Ashok Dhingra, while clarifying that mainstay for car carriers in India will still be trucking for the years to come. On RTO and police harassment of car carriers at State borders, DGRC feels that the menace has reduced significantly post CMVR regulation. “Infrastructure has to improve in the country, while truck driver profession has to promoted with essential skill training and social well-being”, he added.