XPS sees big growth in courier, cargo markets

XPS Cargo, the door-to-door express cargo division of Transport Corporation of India (TCI), has emerged as one of the fastest growing express cargo service in the country and today accounts for one fifth of the total revenue of TCI.

Growing at a compounded annual growth rate of 37 per cent in the last two years, XPS's share in TCI's revenue in the current financial year stands at 20 per cent, the company said.

XPS Cargo division was incorporated in 1996 and has posted a 33 per cent top line and 13 per cent bottomline growth for the first half of 2003-04.

"The courier and cargo market itself has shaped up into a big business opportunity, there is hardly any other player offering home cargo solutions, which is in a nascent stage. With XPS door-to-door cargo service, it becomes extremely trouble-free and cost-effective," said K Prabhakar, chief executive officer, XPS Cargo.

The cargo industry is growing at a rate of 20 per cent per annum and this offers an integrated player such as XPS a huge opportunity. The company has posted a 17.47 per cent growth in top line at Rs 153.32 crore in September 2003, profit has moved up from Rs 1.82 crore in September 2002 to Rs 2.28 crore in September 2003.

XPS has the advantage of the largest road transport network of 300 branches serving over 3,000 destinations in the country, the company said.

It is the first express cargo company in India to use the Global Positioning System (GPS) for consignment tracking and identification. XPS's computerised network is connected with V-sat for effective data flow, the company said.

Apart from door-to-door express cargo service, the gamut of XPS services encompasses air cargo, courier services, e-commerce solutions, customs clearance, cold chain and global delivery reach.

XPS also offers value-added services such as collect on delivery, e-link services, and cash 'n' carry.

XPS has international freight forwarding division, with an in-house custom house agency and IATA certification.

Recently, the company signed a memorandum of understanding (MoU) with Yanmar Diesel Engine Co Ltd and Mitsui, Japan offering cool container services for the transportation of perishable commodities across the country.