LTC Logistics Pvt. Ltd. came into existence in 2005 with the induction of 10 open body platform trailers to transport Mahindra tractors across the country. The company today has a fleet of 231 vehicles of various sizes and types including 6- & 10-tyre rigid axle trucks, trailers with 14 tyres & above and two-wheeler container trucks, while it also uses some attached vehicles, giving it a total fleet strength of over 400 vehicles. LTC is into the transport of tractors, earth moving equipment and two-wheelers with pan-India coverage. The company has 145 Ashok Leyland vehicles, thanks to its superior performance and aftersales service, along with 56 Eicher trucks, 28 from Tata Motors and two MN35 trucks from Mahindra.
Mr. I.P. Laul, Managing Director, LTC Logistics, spoke his mind about how his firm is gearing up for the road ahead and what he believes will drive the future of the country’s logistics sector.
Excerpts:
FY17 performance highlights
In FY17, we recorded around 15 per cent growth. Both demonetization and the BS-IV move restricted our growth, else we would have grown by nearly 30 per cent. Our major achievements during the year included receiving a prestigious award from Mahindra Logistics for ‘Outstanding Performance & Valuable Contribution during 2016’ and from Yamaha India for ‘Best Logistician Award (SJP) for South Zone, 2016’.
Plans and outlook for FY18
The first quarter of FY18 has been good, just that it has been a bit slow because of the uncertainties over GST. Final clarities are awaited and then we shall formulate a new strategy for the rest of the year.
GST impact on logistics sector
It seems GST shall be more beneficial to the transport sector. The waiting time of vehicles en route shall be reduced leading to faster transit times and precious diesel savings in abundance, resulting in huge savings to the exchequer and the operators. Lesser harassment en route, reduction in unofficial expenses with decrease in corruption shall be the plus factors. With cashless transactions, transparency in the system and process-driven operational working with technology adaptation, long-term benefits are anticipated and are rather inevitable.
Company’s GST-readiness
With clarity regarding GST coming in gradually, the entire picture should become clear very soon, based on which we shall plan our new operational strategies for the rest of FY18 and beyond.
Technology adoption
Our operations pan-India are quite systematic as we use tailor-made software to remain connected online with our clients, branches and associates across the country, and monitor preventive maintenance and remittance of taxes. The software also assists in fleet management and fleet connectivity with all our vehicles being GPS-enabled. Our emphasis has always been towards technology adoption to ensure better performance and thereby keep our clients satisfied.
Tackling driver shortage
In the past, the logistics sector had drivers in abundance but with time, the situation has changed considerably and we are today facing an unprecedented shortage of long haul heavy commercial drivers. This can be avoided with greater resourcefulness. With the way the economy is growing, concrete measures are to be taken immediately to avoid the situation from deteriorating further. The newly devised technologies such as driver alertness detection system, pressure/angle steering sensor, etc. should be installed in long haul trucks and trailers to ensure road safety as it would help attract new drivers to come into the sector. More and more driver training centres & institutes need to be opened by the governments – both Central & State – to impart skilled driving techniques to both existing drivers and new entrants. We call our drivers as ‘saarthis’ and treat them professionally, giving them the attention they deserve.
Factors that would drive logistics sector growth
* As stated earlier, GST is going to be a positive factor for growth.
* As most of the over-dimensional heavy commercial trucks in the country have been converted to suit the Central Motor Vehicles Rules (CMVR) and the new ones being manufactured are adhering to the standards laid down, the scope of work with appreciably increased volume is likely and this certainly is a positive factor for growth of the sector.
* With the overall economic growth in the country, reduced bank rates on finances, reduced rates of interest on working capital, the development taking place all over the country owing to constructive environment created by the present Modi Government, all-round growth is likely. The transport sector is also set to grow and the GDP shall increase.