In this month’s Trucker Towns feature, we remain in the eastern part of India to attend the free health and eye check-up camp for truckers organised by JK Tyre at the premises of EFC Logistics at the Naihati hub in Kolkata. With over a decade of association with JK Tyre, EFC Logistics gives the tyre brand a big thumbs up for its best-in-class service and uncompromising work ethic, reports N. Balasubramanian
The eastern part of India is more of a consumer market with relatively lesser manufacturing happening as compared to the other three main regions. As a result, we see more vehicles coming in from other parts of the country to the eastern belt to deliver goods than the ones shipping goods out of the region. In this region, started in 1983 as a transport trading organisation, EFC Logistics has grown manifold to a company of repute with a current fleet size of over 500 vehicles and an annual turnover of Rs. 300 crores, growing at CAGR of 10-15%. Apart from its core business of transportation it also offers an array of services including warehousing and clearing and forwarding for its customers.
EFC Logistics has a pan-India presence with offices in around 40 locations and also has a Container Freight Station (CFS) at Mumbai Nhava Sheva, India’s largest container port. Elaborates Ankit Gupta, Director, EFC Logistics: “We offer complete end-to-end solutions to our clients right from shipping goods from the port to cities and towns to warehousing and local distribution within the cities. Up to 95% of our business volume comes from large customers with whom we have annual contracts while the rest comes on a daily basis on account of ad-hoc movement.”
The location of our latest trucker health and eye check-up camp is EFC Logistics’ mother service hub at Naihati. The centre is spread across five acres of land which is part of a larger space of nearly 30 acres where the company plans to come up with a logistics park in the future. “All our major repair works including engine repair, painting and electrical work are done here. We have our own mechanics, painters and electricians so that all the regular repair and maintenance work is done in-house. We have also set up a retreading centre with the support of JK Tyre where we retread our tyres and also cater to outside vehicles,” Gupta informs.
EFC Logistics ships a variety of goods including fast moving consumer goods, tyres, steel, etc., and has dedicated vehicles for different zones including south-bound vehicles plying to Chennai, Bangalore, Kochi, Hyderabad, etc.; north-bound vehicles making trips to Kanpur, Allahabad, Ambala, Ludhiana and surrounding locations; and vehicles heading west to destinations in Maharashtra and Gujarat. Primarily EFC Logistics introduced itself as a company rendering ultimate last mile ‘integrated logistics solutions’ custom-designed to meet the diverse needs of today’s ever so demanding business environments. “We entered into this industry with a vision to excel,” Gupta states.
Incentivizing drivers
One of the reasons for EFC Logistics’ success and growth over the years has been the commendable handling of its driver workforce. The company follows a unique kilometre-based payment scheme that seems to have created a win-win situation for the company and its drivers. “We incentivize our drivers for every kilometre they drive instead of the usual trip-based approach; so, the more they drive the more they earn. We also conduct regular safety training sessions and ensure our drivers adhere to strict safety standards. As a result, our drivers are fully motivated to earn more by driving more while at the same time ensuring that they do not compromise on safety. We also incentivize them every quarter with a special prize for the driver who has driven the highest number of kilometres,” Gupta informs. “In addition, we provide medical and other insurance coverage for our drivers and also take care of their families,” he adds.
On the vehicle side, EFC Logistics pays specific attention to the safety, comfort and additional features in the cabin, all from drivers’ perspective to ensure they are at their productive best while on the road. A major part of the company’s fleet comprises Ashok Leyland vehicles thanks to the brand’s performance, reliability, and dependable sales and after-sales network, while Tata Motors also has good representation in its fleet. Meanwhile, with the BS VI emission norms coming into force from April next year, EFC Logistics sees this as a good time to expand its fleet, considering the possibility of getting good deals for new vehicle purchase. The company is replacing its older vehicles with newer and more efficient ones as part of a process of fleet consolidation.
Consolidation in warehousing
EFC Logistics’ take on the current market conditions echoes the views of the majority in the transport industry. “Presently there is a slowdown. Recent regulatory changes such as GST and new axle load norms have resulted in a mismatch as a result of which there is higher supply and lower demand. But the good part is that GST has definitely streamlined the transport sector and made inter-state travel quite seamless. The transit time has improved a lot. Also, the demand for warehousing has increased, especially in Kolkata, which is becoming a mother hub for the east. Smaller warehouses are being closed and larger ones are coming up. This is a trend we are looking at to make the most of by expanding our presence in warehousing,” Gupta reveals.
Bonding with JK Tyre
EFC Logistics’ association with JK Tyre is one for the showcase. The company is extremely satisfied and happy with the tyre maker’s approach and support and considers it a boon to have found such a reliable partner who is a pillar of strength for its business. As Gupta puts it, “Our relationship with JK Tyre has been for more than 10 years and it has been truly fantastic. Almost 100% of our vehicles are with their tyres which are really good in performance without a doubt. But it is their after-sales service that really stands out; their people are always on the job and whatever issues we have – whether it is about convincing our team and drivers – they do a fantastic job.”
“If we have any issues related to tyres, JK Tyres is able to provide assistance across India. The best thing is that they never want their customer to lose; they always ensure we end up winning, which is really commendable,” he adds. EFC Logistics has entered into a CPKM agreement with JK Tyre since a year as part of which JK Tyre is involved in tyre fitment, alignment, retreading, etc., across its vehicles. Since the JK Tyre team is trained professionally, the company feels the move will ensure they get the best out of the tyres and relieve them of the burden of maintaining and handling tyre-related operations.
“The CPKM arrangement has been a huge relief. We no longer have any headache from the tyre point of view. JK Tyre has been training mechanics across the country to enable them to function as authorised JK Tyre mechanics who can provide support to customers like us with pan-India presence. In fact, JK Tyre has earned our confidence with their ‘A1’ service level. They know exactly what a customer wants and today if there is any tyre issue during trips, our drivers will not get in touch with our team but directly call the JK Tyre helpline number – such is the kind of confidence JK Tyre has built with us. As such, JK Tyre is not an outsider for us but a part of the EFC Logistics’ family,” Gupta concludes with a smile.