Domestic courier major Blue Dart Express is expecting its turnover to rise by 30 per cent in fiscal 2000-2001. The company ended fiscal 1999-2000 with a turnover of Rs 205.46 crore.
Clyde Cooper, managing director, Blue Dart, sees three reasons for the jump in turnover. "First, there has been a revival in the industrial growth which should mean more business for courier companies. Secondly, the net economy will open up new opportunities in distribution of cargo like computer hardware, fax machines, office automation equipments, music cassettes and CDs. Third, we expect the international business to grow more," he said. The company's optimism on growth in distribution is based on the fact that courier companies will be the intermediaries in business-to-consumer and business-to-business transactions.
They will end up carrying the cargo to the ultimate customer from the manufacturer. The company's international business grew at 10 per cent last year. Blue Dart has a tie-up with Federal Express for this business. Various studies have pegged the value of the business accruing to courier companies via transactions on the Net at Rs 500-600 crore. The domestic business has been valued at around Rs 300-420 crore. Blue Dart plans to garner around 30 per cent of this segment.
Blue Dart is the leader in the domestic courier industry with a market share of around 36 per cent. The company caters to over 1,000 destinations in India. In many places, it has roped in regional service participants for providing services to those destinations where it does not have an office. The company is also open to the idea of mergers and acquisitions.
"As long as strategic alliances work, the acquisition route does not become attractive. If such alliances don't work, we will look a t acquisitions," he said.
