TCI set to launch courier service

Transport Corporation of India (TCI), an established name in freight forwarding, is seeking to harness the growth momentum in the economy by transforming itself into a logistics and supply chain solutions provider and also becoming a retail brand.

To go retail, it is all set to launch its courier service after Diwali, says Chander Agarwal, general manager for new ventures of the company's XPS division. New ventures which already have in place air cargo, cold chain and global services, account for Rs 45 crore of the Rs 738 crore 2004-5 topline of TCI. New ventures division is expected to gain substantially from the growth momentum present in the southern states.

The topline contribution from the south is targetted to grow by 20 per cent per annum and the global business is expected to double in a year.

This is being made possible by the cold chain infrastructure set up in the last two years. The emerging industries being served are garments, pharmaceuticals, confectionery and processed foods in general.

The company is putting in place in the four southern states 81 branches, over 200 franchises and 300 plus of its own staff. It plans to develop Chennai as the gateway to Sri Lanka and Southeast Asia.

Bangalore already plays an important role through a joint venture with Toyota Kirloskar Motor which is an important part of the company's just in time supply chain.

The opportunity for the courier service about to be launched is substantial. The express business market in India is estimated at around Rs 3,000 crore. Forty per cent of this is served by the organsied sector and three fourths of that, Rs 900 crore, is accounted for by Indian companies.