JUNE 2009 |
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 | INDEV ASPIRING TO TAKE LOGISTICS BIZ TO NEWER HEIGHTS |
The company has carved out a niche in its freight forwarding and transportation business through its efficiency and expertise. Being an approved custom broker the company has nationwide clearing & forwarding centre andWorking with a vision to provide comprehensive customized logistics solutions with international standards of excellence and keen focus on customer satisfaction, Indev always apply foresight and innovative style in all its endevours which enabled it to stand tall among its competitors with self identity.
Its service ranges from sea freight, air freight, CFS, transportation, shipping, freight forwarding, project division etc. Besides, the company has forayed into infrastructure development and the association with large MNCs has infused dynamism into the organization.
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pecialized department for various clearances under different schemes. Competitive freight rates with excellent transit times make Indev a great leader in this sector. To its credit the company owns more than 150 fleets for transportation of Containerized Break bulk cargo /ODC cargo. Indev represents major shipping lines for all their transports,. ICD movements / supervision. Outstation transports are also done with own Trucks and vans.
With the establishment of state-of-the-art Inland Container Depot, Indev group has crossed yet another milestone in its road to success.
The world class ICD has been set up in a total area of 10 acres with warehousing and bonding facilities and designed in such a way to provide the trade with hi-tech custom made solutions. The main focus of this ICD is air cargo and all services including pre & post documentation, pricing, examination, drawback, EPPC, receipt and dispatch delivery of cargo, stuffing and stripping of containers, transit operations by rail, road to and from serving ports, customs clearance, consolidation and desegregation of LCL cargo, temporary storage of cargo and containers, reworking of containers, maintenance and repair of container units are being executed in an efficient way with full satisfaction of the customers. Indev's efficiency in CHA, transport and distribution has also assured total value added services to corporates in these segments.
Life is a collection of changes and every change is a challangeOther Activities
Indev Group is also engaged in Hotel business. As a responsible social corporate, the Group is also running an academic institution, ST. BRITTO'S ACADEMY, a school of international standard affiliated to both Matriculation board and CBSE, New Delhi, which is marching onward & forward with its child centred activities into a richer tomorrow. The company also plans to set up village resorts near Mahabalipuram exclusively for corporate sectors where they can hold key meets, conferences and fun-filled activities as well.
Indev works on the wheels of ethics, efficiency and enthusiasm and is well determined to redefine Indian logistics business on par with global excellence. To put into very simple words a professional approach coupled with dynamism and customer relationship is sure to transcend Indev to newer heights.
Mr. Xavier Britto, Chairman,
Tell us something about Indev Group of Companies "Try to build more reserves and do not put you under pressure... under stress you cannot make right decision and also a comfortable growth" |
You have begun your career as a college professor. What prompted you to enter shipping business?
When I was working as a professor in a reputed college in Chennai I had the opportunity to pursue my management course in the evening. One of my professors in the management college Mr. Baskaran, who was then docks manager invited me to join a newly opened company specialising in containers. In the early 80s the containerisation in Chennai port was in the initial stage and I had a brief working experience in that company. In the mean time due to my additional qualifications I was getting offers from many corporate groups. In my life I have been always wanting to do something on my own by exploiting my full potential. My brief stay in shipping helped me to further pursue my carrier in the similar spheres. Since I belong to a middle class family I was trying to start a business in shipping with less capital investment. That is how I had chosen the area of customs house agency business. I started a small outfit in Lingi Chetty Street, Chennai with about 5 people to carry out the CHA activities. By doing CHA business over a period of time I started building the reserves to fill my vision in the future thanks to my initial clients who extended their co-operation by giving advances to complete the job . The educational back ground helped me to learn the job faster and also to think innovatively.
How big is Indev logistics and supply chain operation?
Indev logistics involves various activities such as CHA, transport, warehousing, air freight & CFS/ICD operations. It involves more than 2000 staff force to manage these activities. We are quite strong in the entire South India and have very strong presence in the north and west. Our CFSs are situated in Tuticorin, Tirupur, Pondy, Karur, Chennai North, Irungattukottai and Bangalore. We are also operating modern warehouses with latest software for distribution.
What is the Indev's operating ratio?
Indev is a closely held company totally owned and operated by Mr. & Mrs. Britto. As a group it has a turnover of about 500 crores. Since the operational efficiency levels are very high we keep the overall over head expenses under control and our average costing is quite reasonable. This helped our group to offer cost effective quality services.
Say something about your Irrungattukkottai AFS?
The Irungattukottai AFS started from last year. It is an ICD where in an independent customs house is there . The pre and post shipment formalities can be completed . This is the first ICD station declared as an air freight station. The ULDs from the airport can be moved directly to Irungattukottai and all the customs formalities can be completed and the quickest delivery takes place. We have already experimented the movement of the ULD import boxes for various customers in that area. The concept is slowly getting the momentum because there is no damage , no pilpherage and no multi- handling. Even the lead time for the final delivery is very much reduced to just the 2nd day after the arrival of cargo at the airport. This ICD/AFS has all the infrastructure facilities including bonding, de-bonding and other advantages of free days. All over the world ICD/AFS are established very close to the factories just to provide them the fastest delivery of cargo with minimum lead time and at a lower cost. The Indev ICD/AFS is really moving forward in achieving the global trend and quite productive to the customers both in sea freight and air freight.
The biggest challenge is to have an uninterrupted supply chain with all our suppliers and vendors. How do you propose to cope with these challenges?
Today the biggest challenge is to offer door to door service with the minimum lead time possible . The most of the manufacturing companies would like to concentrate on their core activities and out source the entire logistics activities so that they are assured of smooth flow of cargo for their entire production line. To achieve this in today's context as far as india is concerned the logistics operators are facing big challenges particularly a lack of adequate infrastructure. When I say infrastructure it not only indicates the rail road links but also electricity, water and other basic amenities. The logistics cost in india is all most 13% of our GDP where as the global average is less than 10%. We need to make the landed cost more cheaper for the multi-national companies in order to make them to sustain their activities in India. The logistics operators need to co-ordinate all these inadequacies and at the same time to keep the cost under control. In recent days the competition is becoming more and more cut throat and we need to adopt constant improvements in our facilities and systems management.
How are you battling recession? What solutions are you providing to your clients in grim periods such as this?
As far as India is concerned global crisis is like a traffic jam or fog to delay the flight. The problems in India are not menacing nature. Our banking systems are quite strong and we have a constant growth of domestic market. What is important now is to be more emphatic and tolerant and sensible to stay. The crisis breds opportunity. In the previous recessions many companies like HP, IBM, etc posted growth and profitabliity due to their innovativeness and diversifications. And it should be remembered a recession creates winner and losers just like the boom.
If you have a product you believe in now, is the time to make a bigger investment keeping in mind new areas of value additions.
Could you give us some examples of the cost-cutting measures?
We need to cut the cost drastically and there are certain costs that can be postponed to the near future. At present we need to improve our liquidity and should go in for wise investments. The excessive borrowings shall be avoided. We should concentrate on our strength in improving our market share. Keep your finance in order by building reserves and shedding unwanted areas and products. This is the time you should buy commercial assets cheap. You can even abandon the clients or services which are not beneficial to go in for innovations and instead of reducing the employees we can think of offering them bigger responsibility and compensation can be related to such responsibilities. We should now think of renegotiating of our various contracts and try to offer more and more comprehensive services.
What, according to you, are the three most important things that should be focused on?
What we need to focus considering the present situation is
A) streamline all your operations.
B) technology upgradation
C) be a professional and motivate your team to ensure the growth and accept the trend by building efficiency and as a logistics operator satisfy customer requirements of just in time deliveries.
What are your future plans?
Indev as a group in the last 25 years have achieved steady and gradual growth. The vision I had in 90s that India would go in this particular direction due to global requirements made me to plan and execute various diversifications both horizontal and vertical. Our group is also under constant requirement of further growth and to provide more employment. In the area of logistics by 2010 we would like to create our CFS/ICD in Mumbai and also to build some more hi-tech modern warehouses to provide 3PL and 4PL services to our customers. Our other areas of sea freight and air freight will continue to look for major corporate clients apart from serving freight forwarding groups. Our professionalism will help all the end users to have confidence in us in all respects. We also planned to open more branches and to intensify our efforts in the North.
Apart from logistics you are involved in other activities like Hotel business and you are also having an education institution. Tell us something about those activities? How are you managing everything successfully? What's the secret of your success?
I come from a family of teachers. My mother and my father in-law were teachers for many years. Since I come from a small town down south I always had inclination to serve the society by offering good education. In the beginning I did not have the means to start the institution but by god's grace due to our hard work , team work and team spirit we could allocate a portion of our profits to build the educational institutions . Since I started my carrier as a professor along with my wife it became possible about 10 years back to start schools with central and state board affiliations.
“The logistics operators are facing big challenges particularly a lack of adequate infrastructure” |
Your message to trade
If you want to grow faster you should develop people around you and give them more freedom and responsibilities. In some cases this may be misused but over all this concept will help the organisation to have good progress. Out of my experience I have seen that we have to keep on thinking new developments and of course the value added services. If we remain as what we are there will be stagnation and it will lead to slow death. Whatever may be the difficulties in your growth path never lose your focus. Try to build more reserves and do not put you under pressure by going in for more loans and advances because under stress you cannot make right decision and also a comfortable growth. Life is a collection of changes and every change is a challenge. Never forget the humour in the process of your development because humour is the lubricant of life's machinary. Finally I would like to share with you that what matters is not to add years to your life but to add life to your years.
