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New Delhi-based Agarwal Movers Group’s latest innovation, Trucking Cube, is all set to take the logistics industry by a storm. With trucking cube, the group not only aims at reducing transhipment losses but also provides a 100% assurance on zero loss during transhipment. The group will invest Rs 100 crore over the next three years in this new venture.
The company will utilise the capital to grow the transport ecosystem and add 8,000 more cubes to its inventory, taking the total up to 10,000. It claims Trucking Cube will eliminate transhipment, increasing the efficiency by 200%, while also reducing costs by 6%.
The firm also recently opened its first international office in Singapore. It would facilitate relocation of homes from the country across the globe and support inbound relocations too. The operations would be headed by Abhishek Raj Singh, a member of the group for the last seven years presiding the international division.
“In India we have proven ourselves, the brand stands for quality, out of box thinking and providing customer delight. Singapore packing and moving industry market is about 1000 crore ($150 million). We see our brand gaining immediate acceptance in being the chosen packer and mover brand in the county,” said Ramesh Agarwal, chairman and managing director, Agarwal Movers Group.
According to Agarwal, the logistics industry is plagued by huge transhipment losses incurred mainly in surface logistics, which contributes 4.2% to the more than 5% contribution made by the logistics industry to our gross domestic product. He claims that the industry loses nearly Rs 42,000 crore in transhipment due to surface logistics only.
In a conversation with Business Standard, Agarwal stressed on the need of better road infrastructure and policy implementation for smooth functioning of the industry. “28-30% of the time goes in negotiating with the police officials manning the highways in various districts. This significantly increases the transportation duration, in turn contributing to higher costs,” he said.
The cubes come in six sizes – 4, 6, 8, 12, 16 and 20 feet – and will play a crucial role in the food and pharmaceuticals industry, as claimed by Agarwal. He said, "During transportation of food and pharma products, the temperature usually increases beyond the designated levels, thereby inducing the phenomenon of rancidity. Rancidity damages the quality and efficiency of the products and has a direct impact on the health of the consumer. It can prove fatal for the brand’s name as well."
"Trucking Cube will protect the commercial goods from 'expiring before the expiry date'. The goods are transported in ‘cubes’ exclusively assigned to them, avoiding any rancidity," he remarked. The group looks to migrate its entire service to the different-sized cube container model by July this year.
