About Mahindra Logistics
Industry Outlook – Automotive / 2 Wheeler
Challenges
• Transport Industry
• Automotive / 2 Wheeler Industry
• Regulatory
Way Forward – MLL Perspective
Partnering with MLL
• One of India’s leading logistics service providers with a diverse portfolio.
• Wholly owned subsidiary of the Mahindra Group.
• More than 1,300 crores ( over USD 250 million) revenue
• More than 26 offices, in over 15 cities
• More than 20,000 vehicles
• More than 2,000 employees
• More than 3.5 million square feet of warehouses
• More than 200 corporate customers
• ONE Solution…….
PARTNERSHIP
• Our logistics service offerings are highly diversified and always customized
• We believe contract logistics to be a collaborative and constantly evolving partnership between us and our customers
• We also believe in evolving our approach to meet the changing needs of various businesses
• We seek partnerships with those customers to whose operations we can continuously and consistently add value
Supply Chain
Consultancy
Supply Chain Design
Planning
Optimization
SOLUTIONS
DESIGN
Warehousing &
Linefeed
Process & Design
Operation
Automation
Supported by
INFORMATION
TECHNOLOGY
Solutions for our
Partners
Transportation
Primary
Secondary
International
People Logistics
• Auto
Supply Chain Design
• FMCG
Supply Chain Optimization
• Telecom
• Cement
• Retail
• Engineering
• Textiles &
Garments
Primary Transportation
Secondary Transportation
Warehousing
Distribution
Final Processing
Reverse Logistics
International
We manage end-to-end solutions and continue to innovate improvements to our partners value chain
Global & Domestic
Suppliers
Transportation – Road, Rail, Air & Sea. Both Domestic & International
Finished Goods
Inventory
In-plant stores & Production Linefeed
Reverse Logistics – Repairs & Returns
Break Bulk & Consolidation Centers
Packing & labeling
Transportation Distribution
Centers
Last Mile
Logistics
Auto Industry Outlook: Automotive growth in last 4 years in the domestic market
3
2,52
1,95
2
1,55 1,55
1
0,36
0,49
0
2007-08
Three Wheelers
0,35
0,38
0,44
0,53 0,53
0,68
2008-09
Commercial Vehicles
2009-10 2010-11
Passenger Vehicles
Source: Society of Indian Automobile Manufacturers
Automobile Two Wheeler Domestic Sales in last 4 years
15
11,79
10 9,37
7,44
7,25
5
0
2007-08 2008-09 2009-10 2010-11
Source: Society of Indian Automobile Manufacturers
Regulatory
Market (OEM)
Industry
Challenges
Regulatory Challenges
Application of CMVR Rule
Increasing RTO issues
Changing Rules impacting Overloading, Fines & Penalties, Legal liability
GST Implementation
Increasing Toll Expenses
Market (OEM) Challenges
Imbalanced growth across OEM’s
Sectoral or Geographical shift in Automotive cluster (west becoming a strong
Automobile originating market)
Skewed distribution pattern during the month across OEM’s
Reduced volume per delivery point
Shrinking volume resulting pressure on Logistics cost
Industry Challenges
Increasing competition - Transporters from different industries entering automobile transportation segment
Increasing Carrier Waiting, impacting TAT - reduced productivity
Reducing driver population, impacting heavy asset idealing
Increasing cases of Theft / Pilferage / Cash Mismanagement
Increased road expenses, unaccounted road expenses, fines
Putting pressure on Margin
C.A.I.
• Partner with one of India’s leading logistics service providers
– Large operator with transportation across segments
• 2W / 3W / 4W / HCV / Farm Products / Construction Equipments
• Inbound / Outbound / IUTN / Spare Parts
• Volume in access of 700,000 units per annum
• Opportunity to grow along with us and be part of our success story
• Industry Vertical focused with interest spread across various industry segments
– Automobile
– FMCG & Retail
– Cement / Agri / Power
• Best practices, technology and process
• Be part of the RISE movement !