The railways subsidiary on September 1 came out with an aggressive marketing offer that gives 45-day free storage to its customers. Almost a month into the new scheme, the company hopes that the move will be a catalyst so far as its plan to double turnover from Rs61.67 billion in 2017-18 to Rs120 billion by 2021 goes.
“We want to ensure ease of doing business for all our consumers. With this, we will be providing same consumer experience across the country. This is expected to increase our market share to around 80 per cent soon,” V Kalyana Rama, chairman and managing director of Concor, told Business Standard.
Industry players are, however, of the view that the move was not a big disruption as some other players are already giving such offers. Avvashya Group’s Allcargo Logistics, Gateway Distriparks, Apollo LogiSolutions and Navkar Corporation are among the large private container freight stations (CFS) and inland container depot (ICD) operators in the container warehousing industry.
“Concor has given the offer at its ICDs near Delhi and we do not have any facilities in that region. So, there is no impact on us. In Nhava Sheva, even others, including Gateway, are giving 10-14 days free storage already. So, it’s no big deal. With the US dollar fluctuating so strongly, the customer is not ready to store cargo for long,” said a senior official with Gateway Distriparks.
Industry experts highlight that this may not have a lasting effect as Concor has raised its prices by Rs 1,500 for another service and has only compensated that hike by giving the 45-day free storage period.
“In Mumbai, we have CFSs where we compete with Concor. Its 45-day free storage period has not impacted us so much since we too make such offers to our customers via deals. It’s only that we do not use these deals as marketing tools nor do we make any such announcements. It depends on our relations and negotiations with the customer and so deals or discounts vary from case to case,” said a Navkar Corporation official on condition of anonymity.
For the express cargo delivery services, too, the offer may not be of much consequence. “We will not get impacted by Concor’s move at all. We are in the business of express delivery and the whole issue of 45 days would not be looked for by our customers,” said Anil Khanna, managing director of Blue Dart Express.
The CFS/ICD industry had grown at 6-8 per cent annually over the past five years with Rs45 billion revenue in fiscal 2018, said a Crisil report. As of July 2017, there are 169 CFSs in India, and 67 inland container depots (ICDs).
“In logistics, fortunately, there is no dearth of customers. Even if we lose customers to Concor due to such offers, there are many more in the market to whom we can offer services to. We approach customers with an end-to-end package. So, you will never find Navkar making such announcements for a one-off service,” the Navkar Corporation official added.
Both, ICD and CFS are extensions of port infrastructure. CFS, however, is used for customs clearance and other regulatory procedures outside the port premises while ICDs are located in the hinterland.
To read the full story, Subscribe Now at just Rs 249 a month
Already a subscriber? Log in
Subscribe To BS Premium
₹249
Renews automatically
₹1699₹1999
Opt for auto renewal and save Rs. 300 Renews automatically
₹1999
What you get on BS Premium?
- Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
- Pick your 5 favourite companies, get a daily email with all news updates on them.
- Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
- Preferential invites to Business Standard events.
- Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
Need More Information - write to us at assist@bsmail.in