MOSL: THE CORNER OFFICE (TRANSPORT CORPORATION OF INDIA) — GST implementation to transform road logistics industry

THE CORNER OFFICE (Transport Corporation of India) — GST implementation to transform road logistics industry; TCI is well placed to benefit

Mr Vineet Agarwal —Managing Director

Mr Vineet Agarwal has been the Managing Director of Transport Corporation of India (TCI) since July 2011. He has been Executive Director since April 1, 2005. He has been instrumental in successfully positioning TCI as the market leader, more particularly, as a total logistics solutions provider offering customized solutions. Mr Agarwal holds a BSc degree in Economics and Industrial Management from the Carnegie Mellon University, USA.

• The share of multimodal logistics is poised to grow due to expected rise in average distance travelled by goods post GST implementation. TCI is well placed to benefit from the growth in multimodal logistics, given its JV with CONCOR.
• GST implementation would result in consolidation of smaller warehouses to form large warehouses to cater to the hub-and-spoke model. The smaller fleet operators are also likely to consolidate, with clients preferring organized/GST-compliant operators.
• Shift from unorganized fleet operators to organized fleet operators would initially lead to increase in freight cost for the organized sector. However, in the medium term, due to better turnaround time and improved fuel efficiency, overall freight cost would decline.
• Our view: Organized transporters are likely to see an increase in volumes post GST implementation. Being the largest organized fleet operator, TCI would be the biggest beneficiary.