"With massive changes in supply chains the industry will witness an acceleratedtrend of digital transformation. From planning to execution every element of thelogistics value chain will be reshaped automated and digitised."
In an unprecedented year we at TCI have on the strength of our adaptability and focuson safety managed to prove our business resilience. Additionally the COVID-19 pandemichas given us a glimpse of the future in which logistics may become even more importantthan now as more people stay at home and order goods online requiring more cargo to bemoved across the country and across the world. We believe that despite setbacks the NewNormal holds promise for a strong operation capable of using digitalisation to itsadvantage.
FY 2019 was undeniably challenging even before the contagion began spreading in thefirst quarter of 2020 and led to the nationwide lockdown. The Indian economy faced aslowdown in 2019 due to multiple complex factors such as liquidity constraints and mutedprivate consumption and investment leading to sluggish demand. There was a major impact onthe Automobile industry. We faced supply chain disruptions in the fourth quarter becauseof the social distancing and then the lockdown. However we continued to sustain thebusiness due to our focus on strong fundamentals and value creation for our customers.
While the novel coronavirus outbreak and the containment measures everywhere hit theglobal economy very badly prompting most economists to significantly downgrade growthforecasts for the world including India this has been somewhat offset by the stimuluspackages announced. Governments are keen to revive the cycle of supply and consumptionmainly through monetary easing and liquidity infusion and this raises hopes of a recoveryin the second half of 2020.
Your Company's Performance
Your Company witnessed challenging times during the year. Sluggish economic growthslowdown in several end-user industries and supply chain disruptions in the fourth quarterof the financial year under review due to COVID-19 outbreak impacted performance. Ourrevenue stood at Rs. 273796 lakhs in FY 2019-20 as against Rs. 277316 lakhs in theprevious year.
Nonetheless strategic steps taken over the years reinforced our competitiveness. Oursustained focus on maximising operational efficiency optimising costs effective capitaland asset allocation management and continual investments in our people and work cultureenable us to weather the external challenges and persevere ahead with confidence. We havesuccessfully expanded our presence by leveraging the trust we have earned from ourcustomers as well as our business partners. Our vision is to build a company that deliverstrue end-to-end logistics solutions that help our customers manage their supply chainswhile leveraging the opportunities of digital technology to significantly improve thecustomer experience and how we run the company.
You would be glad to know that we have undertaken some notable initiatives during theyear under review. We acquired and launched TCI Anand a new ship in October 2019 tobolster our presence in the western and southern coasts of India.
Another commendable highlight was the official inauguration of TCI Safe Safar at NewDelhi in September 2019 by Shri Nitin Gadkari Honorable Minister for Road Transport &Highways Micro Small & Medium Enterprises. TCI Safe Safar is our health and safetyinitiative aimed at creating awareness on road safety for the
logistics and transportation industry. This launch demonstrates our commitment andresponsibility towards road safety for building a healthier and safer nation. During theevent Shri Nitin Gadkari also held extensive discussions with our management to identifyways for promotion of such initiatives that would lead to fewer road accidents andinjuries.
Growing opportunity landscape
The prospects of the transportation and logistics industry remain dynamic given theGovernment's sharp focus on infrastructure development and improving logistics efficiency.Transformational reforms such as GST and shift towards the organised market augurs wellfor the overall industry. Further the sector is seeing massive technological disruptionsthereby creating new opportunities to redefine business models enhance efficiency andimprove customer experience.
The Post-COVID-19 world
Right now almost every country around the world is fighting the spread of COVID-19. Atthe first signs of the outbreak we took a series of measures to contain and prevent thespread by implementing security protocols thus ensuring the safety and well-being of ouremployees. We have also turned outward to help combat the spread of the virus with digitaltechnology. 2020 may prove to be an even greater challenge. Nevertheless we are confidentabout the future and will stay on course and continue creating value for our customers.India's supply chains will undergo substantial transformations in the coming years in thelight of disruptions caused by the pandemic. Organisations will need to adapt to this newreality and build greater agility and resilience in their supply chain. I believe thiswill create newer and exciting opportunities for the logistics players.
Typically multimodal transport using a combination of rail sea and road will growsignificantly with lower touchpoints for cargo and reduced inter-state movements.
From bulk buying to online shopping people are changing what they are buying and how.As consumer preference for online shopping increases demand for warehousing and coldstorage will spur. Risk management will assume greater significance as organisationsinstil higher compliance checks in their distribution pipelines. With social distancingbecoming the New Normal stringent safety and health checks sanitisation protocolscontactless delivery etc. will become imperative.
Moving ahead we have the right pivots to grow. We continue to make strategicinvestments in technology infrastructure processes and human resources development. Wehave significant headroom to expand our foothold in India by delivering value-addedservices to our customers. As we move forward customer-centricity profitability andpurpose-led growth will become our key focus areas.
We are prepping up to embrace the New Normal in logistics space in a post-COVID world.Through our robust integrated multimodal network and end-to-end supply chain solutions wewill continue to ensure seamless delivery and maximum customer satisfaction.
Moving forward we will continue to drive value creation for our customers andstakeholders. I would like to take this opportunity to thank the Board for their guidingprinciples; our management for their expertise and capabilities; and our stakeholdersbusiness partners and customers for their constant trust and support. And finally I wouldlike to express my gratitude to all the employees who are "TCI YODHAS - The SupplyWarriors" and our most important assets for their loyalty and contribution.
D. P. Agarwal
Chairman & Managing Director