The last two years have been tough for the India’s economy in terms of economic growth due to global economic slowdown and monetary crunch. From an infrastructure perspective, it can be safely said that logistics industry can be called the backbone of India’s economy. In total, there are 78 lakhs commercial trucks of which only 10% are national and the rest 90% are either local or regional. According to industry estimates, the logistics market in India is expected to grow to $301.89 billion by 2020.
But at the same time, the industry is staring at a loss of Rs 42,000 crore which happens each year due to surface transhipment. With a vision to redefine the ways of traditional transportation system, Agarwal Movers Group has formulated a distinctive concept “Trucking Cube”. The special attributes and numerous advantages enable it to fulfil all the domestic, commercial, and industrial moving needs seamlessly.
In an interview with Media Kindle, Mr Ramesh Agarwal, Chairman, Agarwal Movers Group shares his perspective and believes that the Indian government should take a few initiatives to boost this industry by implementation of GST and also by taking a fast-track approach on infrastructure projects.
Tell us a little more about the idea and technology behind the “Trucking Cube” concept
The R&D team at our company observed that households, when moving their homes (usually once in two or three years), look for a moving partner which offers value for money assuring a ‘seamless’ move with ‘zero loss and zero damage’ of their goods. The business customer also looks for a partner with ‘zero loss and zero damage’ of its goods.
After carefully studying all logistical expectations of our clients, we came up with a revolutionary concept of ‘Trucking Cube’ . A cube with a built-in air circulation system in your own private space to ship goods from one place to another without even a one percent damage.
Depending on the requirement, a cube can be selected as per the requirement of the consignment from 4ft, 6ft, 8ft, 12ft, 16ft & 20ft. In case of breakdown, the cube is transhipped without impacting the goods.
What was the thought process behind Trucking Cube and when did this concept begin in India?
The though process behind the ‘Trucking Cube’ concept is that Agarwal Packers and Movers assures ‘Zero Damage Zero Theft’ to its client. With ‘Trucking Cube’ we saw huge value to our clients both in the B2B and B2C space. Talking about B2B as a business, we think and breathe about how we can simplify moving solution for the customer.
What has been the challenges for the Indian logistics industry?
Indian logistics sector is estimated to have grown at a healthy 15% in last five years. However, growth in sub—sectors has varied, with the lowest being in basic trucking operations and highest in supply chain and e-tailing logistics. Some studies estimates that the share of India’s Logistics spends in GDP are at 14% which is way higher than 7-8% in developed countries implying an overall size of $180-220 billion as direct costs and wastage from inefficiencies. A comparison with other countries shows inefficiencies are higher in the Indian logistics sector.
From a B2B perspective, the cost plays a major role as it is further passed onto the consumer. Complex taxation and the use of different road permits/documents in different states impose additional constraints on the movement of freight by road resulting to additional burden. To curb the problem of cost, generally companies plan to send big consignments to their branches which results in inventory pileup at destination, but with trucking cube, they can now plan their consignment as per the specific demand at no additional cost, thereby reducing inventory pileup. For a B2C mover, moving household goods means moving emotions which is addressed very well with ‘Trucking Cube’. For a B2B player, a brand takes decades to build its reputation and not partnering with the appropriate logistics partner can tarnish the image overnight, but with Trucking Cube there is an assurance of ‘zero damage.’
Besides, there is a social impact which is leading to reduced fuel consumption and also there is an increase in productivity and service as now both loading and offloading is much quicker.
How do you see your company perform in the next year?
Financial year 2014—15 saw Agarwal Movers Group do a turnover of Rs. 391 crore, we see a 20 percent growth in financial year 2015-16. Today 15% of our revenue is coming from ‘Trucking Cube’. By September 2016, ‘Trucking Cube’ is how we will move to 100 per cent and we are confident of achieving it.