A well-rounded player

INTERVIEW: Sanjeev Kumar

'We will ride the fast growing Indian economy'

Sanjeev Kumar, director and head of business development and operations at the three-decade-old Ritco Group, is based at the group's corporate office in Gurgaon. He says his mission is to make Ritco one of the best professionally managed third-party logistics companies in India.
Excerpts from an interview.

Q. What are the Ritco Group's main strengths?

First, we offer the entire supply chain management services ranging from transportation to warehousing across product categories; second, we have a pan-India infrastructure with 125 branches based on a hub-and-spoke model, which ensures that we provide cost-effective and quality service to our customers; and finally, we create, deploy and utilize the best logistics software in the industry, and we use GPS devices to be in touch with each of our vehicles.

Q. Have Indian logistics companies transformed themselves from cargo movers into end-to-end solutions providers?

Most companies still operate in separate silos and there are very few end-to-end solutions providers. The Indian logistics industry is largely dominated by unorganised players, who can be classified as either local transporters, or transporters providing some value-added services.

None of these players either have experience across different stages of logistics, or the management bandwidth to expand into other legs. As a result, what we see today is a smattering of small players, who lack both the capability and the capacity to operate as an end-to-end solution partner in the logistics sector.

Q. What are some of the difficulties that Indian logistics companies typically face?

Lack of adequate infrastructure is the single biggest barrier to the growth of Indian logistics companies. Factors such as congestion and low speeds on highways; lack of modernisation of railways; inability of the air transport infrastructure to keep pace with increasing needs; ports and container stations being under stress as a result of the high volume of transactions in the last four years; and labour issues such as lack of quality/trained labor and union issues result in higher costs and lower reliability for logistics operators. This in turn affects the industry's customers, in terms of service and costs.

Q. What milestones has the Ritco Group crossed in its entrepreneurial journey?

We began operations in 1974 as a parcel company. In the early 1990s, we diversified into the transportation of dry and liquid cargo, which promised huge growth opportunities. Since 2005, we have increasingly focused on providing value-added logistics services and moving towards complete supply chain management. The group has also established two logistics companies in the US. Today we have over 100 clients, including several blue chip companies. Q. What are the Group's future plans?

Ritco intends to continue to leverage its unique position as an end-to-end logistics services provider. We will ride the fast growing Indian economy to develop into the only reliable logistics company in India.

We will leverage existing resources, relationships and expertise to further strengthen current service offerings and business; establish ourselves in white-space geographies within India; become a leading integrated 3PL logistics service provider and buy a freight forwarding and express cargo company; and develop our network around the globe through a network of tie-ups and agents.

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"Since 2005, we have increasingly focused on providing value-added logistics services and moving towards complete supply chain management''
Sanjeev Kumar
Director and Head of business development and operations, Ritco Group