JK Tyre had garnered huge praise from its top fleet operator customers in Jaipur as seen in our previous edition. Next up, we travelled all the way to Kolkata to meet one of the Indian tyremaker’s largest customers in the region. Seconding the thoughts of its peers in Jaipur, the fleet operator we met there regards himself as the extended family of the Indian tyre giant.
In order to gain a broader understanding of the close-knit relationship, we visited EFC Logistics India Pvt. Ltd., which is also the largest fleet operator in East India. What started as a small transport company with a handful of experienced personnel has metamorphosed into a team of more than 600 professionals spread across more than 30 stations all over India in the last few decades. The 32-year-old transport company, which has close to 400 trucks of various dimensions in its fleet, is also running a 136,000 sq.ft stockyard at Pakuria, which is roughly 30 km from Kolkata. The AITWA member has always adopted a single-source strategy in its business, i.e., trucks from Ashok Leyland and tyres from JK Tyre.
In a one-on-one interaction at his swanky office at Salt Lake (in East Kolkata), Mr. Pramod Kumar Gupta, Managing Director, EFC Logistics India, stated: “In the early part of 1980s, we ventured into the transportation industry with an idea and a vision to excel in the ever evolving dynamic business of transportation. We have achieved various milestones in the process of growing in this sector. Today we take pride in the recognition as a formidable name in this industry and have a pan-India presence in the field of supply chain management and shipping solutions. With rich experience of over three decades, we offer each and every client tailor-made and customized solutions specific to their needs based on our formidable experience across a broad range of market sectors. With an advance knowledge of creating space utility, coupled with our core competence, i.e., transportation, we serve the clients with the best and affordable services.”
Along with Mr. Pramod Kumar Gupta, the other Directors of EFC Logistics are his brothers Mr. Sanjay Kumar Gupta and Mr. Pravin Kumar Gupta, with one of them operating from Mumbai.
It is to be mentioned here that under EFC Logistics there are multiple subsidiaries with each having its own domain expertise and they are Logistics and Transportation Services, Warehousing, Container and Tank Terminal, and Offshore Business. Mr. Pramod Gupta, who sowed the seeds of business, added: “In 1983, we started a partnership firm named Eastern Roadways Corporation (ERC) with my younger brother’s assistance. In 1996, it became a private limited company. We entered the fleet business in 2003, and now we have 370 vehicles (from LCVs to multi-axle vehicles). We have a countrywide presence transporting various commodities like cement, polymers, purified terephthalic acid (PTA), agricultural products, steel, tyres, lubricants, FMCG, etc. Polymer and PTA account for a major chunk of our transportation business. We are catering to diverse sectors, and our major focus has been on eastern and western markets of the country.”
In the brief of history of its existence, the group has evolved into a multi-faceted service provider actively involved in all areas of shipping and logistics. Reliance, Essar, Haldia Pertrochemicals Ltd., ICI, GSK P&G, Videocon, Valvoline, Dabur, ExonMobil Bacardi, Marico, BASF, etc., are some of the marquee clients it is catering to for many years now.
When asked about its existing fleet of vehicles, Mr. Gupta said: “We have been associated with Ashok Leyland four years back and all trucks are under AMC. With 100 container trucks and trailers, we utilise 1,500 tyres per annum across the country, out of which 85% are radials. We got into radialisation over 10 years back. In fact, we were the first to bring those tyres to the eastern part of India. Thanks to JK Tyre; we were able to control costs without compromising on quality. There was an ensemble back-up team from JK’s Fleet Management Programme who were there to teach our drivers how to use tyres judiciously and conserve many drops of diesel. Although there was too much resistance in the market (to embrace this technology), we put our best foot forward. And now they (our peers) have finally been toeing the same line.”
Talking about the importance of tyres and how JK is stepping in to improve their business, Mr. Gupta affirmed: “Tyre costs account for 8 per cent of our total earnings. From bias tyres, which run for 60,000-70,000 km, we have now switched over to radials running for 100,000 km+ and 12-14 months (from 8-9 months earlier). So now I can manage (operational) costs and garner incremental profits too. Moreover, JK has been conducting programmes at our own premises. We have also made an arrangement with JK wherein the tread rubber is provided by them and retreading is done by us.”
For a fleet operator clocking an annual turnover of Rs. 170 crores and is anticipating Rs. 225-230 crores in the current financial year, it is not that surprising that 100 per cent of its tyres are JK-branded. As Mr. P.K. Gupta rightly puts it: “They are the best in terms of quality, durability, technology, cost, after-sales service, etc. They are not only selling tyres to us but also taking proper care during each and every time it is fitted on our vehicles. This is what we call after- sales service. You need a soldier to be your saviour when you are in a mess. They have supported us even when we were at fault.”
Asked for a suggestion for JK Tyre, he said: “Please continue to do whatever you are doing. Being a professionally-run company, there have not been any changes in the approach (to fleet operators) at the management level. We beckon them, and they are there right at our doorstep.”
