Industrials

<h2 style="text-align: justify;"><span style="font-size: 12pt;">Q1. Could you start by giving us a brief overview of your professional background, particularly focusing on your expertise in the industry?</span></h2><p style="text-align: justify;">Overall 25 years of working opportunity in the logistics and supply chain industry @ 360 degrees at an Indian MNC LSP " Gati Ltd " started as an assistant manager and grew through the ranks to become the COO of their Cold chain division in a span of 20 years and then worked in ABT Ltd as their VP &amp; COO for their express parcel service division and have handled multiple roles from Sales Operations Fleet management and finally as COO reporting to the board for the overall performance of the companies.</p><p style="text-align: justify;">&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 12pt;">Q2. What are the main drivers behind the growing demand for cold chain logistics in India, and how are companies adapting to cater to sectors like pharmaceuticals and perishable goods?</span></h2><p style="text-align: justify;">The growing demand in this industry is driven by the people's choice of eating frozen foods (which was an enigma in India as people are used to eating fresh foods only), RTE, and probiotics, which are the growing demand now. The Indian fruits and vegetable produce is going to waste by 60% before the produce reaches from Farm to Fork. Pharma now, with the advent of many virus-related diseases worldwide, the cold chain plays an important part in making the vaccines reach the nook and corner of the world from tier 2, 3, and 4 cities.<br>&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 12pt;">Q3. Which companies are best positioned to take advantage of the rising demand for last-mile delivery and cold chain logistics?</span></h2><p style="text-align: justify;">At a Pan India level, Snowman/RKFL have a niche, and regional players are gaining momentum. Cold Man/Cold Rush/GKIL (earlier Gati Kausar ) are serving better confined to their territories. The LMD has always been a challenge in &nbsp;the cold chain market as 70% is the delivery service level, and there are no effective offline cold storage systems in India, ie, the Eutectic and glycol solutions were not able to cope with the Indian temperatures and demand for delivery, but companies with strong regional hold can deliver 70% of effective deliveries and technology had taken a back seat due to cost implications.&nbsp;</p><p style="text-align: justify;">&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 12pt;">Q4. How are Indian logistics companies leveraging the recent government facilitation to enhance their integration with global supply chains?</span></h2><p style="text-align: justify;">The supply chain has taken a paradigm shift in recent years (post-COVID), and global supply chains are vital to any country's local supply chain, as integration is the key to any organization's success as a whole. The integrated freight corridor and the recent budget by FM India have opened many areas of correction, from waiting time to clearance of goods to increasing consumption by lowering taxes, leading to more logistics movement in India and globally.<br>&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 12pt;">Q5. Given the significant increase in e-commerce, which has heightened demand for quicker air freight services, how are air cargo companies scaling operations? What investments are being made in technology to streamline operations and reduce turnaround times?</span></h2><p style="text-align: justify;">The first and foremost is to open up the "Ghost airports " in India, which are open and not fully operational and lead to mutilated connectivity. This will greatly help the fastest-growing Q commerce industry, and investments will be made in faster x-ray scanning in airports and reduce congestion at the air cargo clearance terminals. &nbsp;&nbsp;</p><p style="text-align: justify;">&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 12pt;">Q6. What is the current market size of the logistics industry in India? How are the different segments, such as express B2B, B2C, B2B2C, and cross-border e-commerce, performing in terms of growth rates and revenue generation?</span></h2><p style="text-align: justify;">The current logistics organized market size in India is around 28000 crores. The unorganized players' business should be around 8000 crores, which is the overall scenario for all segments of road transportation. B2B/B2C is growing at a very constant pace of 9 % YOY thanks to the middle mile operations of the e-commerce industry with the opening up of EFC, which is close to the market and delivers quicker to the market. B2B22C and cross-border e-commerce have taken a back bench due to the recent developments in international trade restrictions with China, which is at 6 percent.<br>&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 12pt;">Q7. If you were an investor looking at companies within the space, what critical question would you pose to their senior management?</span></h2><p style="text-align: justify;">No Fairy tales, only reality: A deck, a landing page, and a vision won't impress me. Show me paying customers or the customers whom you have lost, and you are bringing them back.</p><p style="text-align: justify;"><strong>Path to profits</strong>: A clear roadmap to profitability should be visible in 3 years. Raising 100 million INR is fine. Are there clear plans to make money ahead of inflation? Growth on the topline is great, but are your cash flows enough to run day-to-day operations rather than depending on working capital?</p><p style="text-align: justify;"><strong>Differentiation</strong>: If the differentiation is only price, it's the only waste of time. What value you bring to the table to lure customers and keep them in your fold is important, and what do you have in focus that your competitors have now or can reach that level only after years?</p><p style="text-align: justify;"><strong>Sense of urgency</strong>: The founders or the CEOs should be working as if there is no tomorrow, and if they wait for some funding and experienced hires to do the job, then the game is lost.</p><p style="text-align: justify;"><strong>Distribution strategy</strong>: You cannot win the marketplace war with yesterday's distribution strategy. With the advent of rapid and quick commerce, there has been an evolution in upgraded distribution strategy, AI, and other approaches to reach the customer before he changes his mind. Advertisements today are so sharp, which is making customers make decisions in split seconds and which has opened up another opportunity, or you call it pandora's box, known as reverse logistics, which is now growing at a pace of 12 % YOY.&nbsp;</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p><h2 style="text-align: justify;"><br><span style="font-size: 14pt;">Expert Summary</span></h2><p style="text-align: justify;">Jaisankar Sethuraman is an esteemed logistics consultant with over 30 years of experience across a comprehensive spectrum of logistics functions, including express logistics, cold chain solutions, and supply chain management in the Asia-Pacific and India regions. He has demonstrated expertise in leading transformational initiatives, optimizing operational efficiency, and driving growth in e-commerce and retail distribution sectors. Sethuraman has also served as Vice President and COO at ABT Logistics, enhancing business strategies and operations.</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p>