DTDC being

India’s Largest
Delivery
Network
Company
serves over
10,000 pin
codes in India
and operates
through 240
international
offices across
the globe.
With an effort
to make your
search for
branch office
addresses
easy and
hassle free we
have listed all
the branch
office address,
which will
enable you to
trace your
desired
location
without delay.

To know more about DTDC branch

offices or any specific branch address
 click on the desired location on the
left hand side of the page where the
location name has been mentioned
and view the details.
For more information on:
Tracking and tracing queries email us
at info@dtdc.com and to register any
grievances email us at
css.co@dtdc.com

INTRODUCTION ABOUT THE INDUSTRY

The courier industry has been the single largest

beneficiary of a pick up in the economy. Volumes of
shipments have been on an upward trend and so
have the yields. This is in complete contrast to the
situation a couple of years ago when the industry's
volumes were hampered on account of slowdown in
industrial and export demand.

The financial performance of Blue Dart and Elbee two

of the leading courier companies in India during
Q3FY2000 aptly tells the story. While Blue Dart
managed to post a robust growth of 125% in net
profits on account of the low base of the previous
year, Elbee's operations were back in the black.

Margins at the operating level have also expanded,

which is in line with the cost structure of courier
firms. Says Mr Yogesh Dhingra CFO Blue Dart
Express Ltd " Nearly 90% of our operating costs are
fixed in nature. Hence even though the break even
levels are high revenues above this point
directly adds to our bottomline". According to
industry officials the performance in Q4 is expected
to be even better than the previous quarter. This
should get translated into healthy gains at the net
level.

The growth story in the industry is expected to

continue into the future. On a conservative basis the
courier industry is Margins at the operating level
have also expanded, which is in line with the cost
structure of courier firms. Says Mr Yogesh Dhingra
CFO Blue Dart Express Ltd " Nearly 90% of our
operating costs are fixed in nature. Hence even
though the break even levels are high revenues
above this point directly adds to our bottomline".
According to industry officials the performance in Q4
is expected to be even better than the previous
quarter. This should get translated into healthy gains
at the net level.
expected to grow at between 25-30% over the next
three years according Ashis Nain Chief Operating
Officer of Elbee Ltd. He also expects bigger courier
companies to grow at a faster pace than the industry
average due to the inherent strengths of the larger
courier companies especially with regard to reach
and technology. Currently both Elbee and Blue Dart
service over 1100+ destinations in the country.

The above growth rate also does not factor in the

potential from E-commerce and third party supply
chain management. We will address these issues in
the ensuing paragraphs.

Business to Business (B2B) and Business to

Consumer (B2C) models has created a new revenue
stream for online as well as brick and mortar
companies in the US. Even though this model is in
the nascent stage of development it provides
companies with huge benefits in terms of cost
savings and inventory management. Currently in
most traditional businesses primary and secondary
distribution channel comprises between 20-25% of
the total product cost. E-commerce through B2B and
B2C sales could eliminate a major chunk of the costs
involved in the distribution chain thus translating into
healthy bottomline gains for courier companies.
Internationally United Parcel Services handles 55%
of all the goods ordered over the Internet.

In the domestic market also, courier companies are

gearing up for logistics business through E-
commerce trade by making huge investments in
information technology and distribution systems.
According to Nasscom E-commerce business in India
is expected to touch Rs100bn by 2002. In this
regard, Elbee has been the first company is India
that has developed a special product catering to
this business segment. The product christened
elbeenet.com, would provide end to end solutions for
e-business for both B2B and B2C transactions with
the ability to track packages online. Adds Sunil Rai
Vice President Marketing of Elbee" We wish to
capture 55% Rs5bn e-commerce logistics market".
The company has already tied up with ICICI, India
Infoline.com Vasool.com and India Info.com on an
exclusive basis for logistics solutions. Given the
lucrative business opportunity we expect other
courier companies to also follow suit.

Another potential business opportunity for express

service companies is managing supply chain of
manufacturers. Courier companies have the
expertise in inventory optimization and warehouse
management. This not only will result in cost savings
but also will help improve lead-time resulting in
better service to the end user.

It is difficult to quantify revenues from the

above businesses. However one thing is clear that
opportunities do exists and this is getting reflected in
the valuations of courier companies both at home
and abroad
The reason for dismal performance of courier
industry

Historically, the growth of the Courier Industry has

been dependent upon various factors such as general
growth of the Industry, growth in export-import and
general health of the economy. In the early nineties,
the industry was able to grow at an above average
rate of between 30-35%

primarily on account of higher industrial growth.

However, in the past two years the recessionary
conditions in the economy and the slow down in
export and import adversely affected the express
industry.

You must remember that the industry has a very

high level of operating leverage. Hence performance
of the courier industry is inextricably linked to the
volume of business generated.
 DTDC COURIER SERVICES

INTRODUCTION

DTDC Courier & Cargo Ltd. is one of the leading

Express distribution company in India covering both
domestic and international services. Incorporated in
the year 1990, DTDC is in its 20th year of operations
in India. It has a large delivery network covering
close to 10,000 Pincodes giving its customers the
best reach in the country. Its efficient international
network spans over 240 global destinations
supported by its own offices in US, UK and DUBAI
and associate offices in all the important global
destinations.

Head quartered in Bangalore DTDC has its Zonal

offices in Banglore, Mumbai, Delhi and Kolkata
supported by 300 plus own offices and over 4000
channel partner offices spread across the country
delivering over 100 million shipments every year.
Company has the state of art IT infrastructure to
support their operations and has built many
customized applications for its corporate clients.

Under the able leadership of Mr. Subhasish

Chakraborty, the founder chairman of the
organization , DTDC has an efficient team of
management professionals who are working round
the clock delivering value to their customers.

DTDC has been innovating constantly to provide

products and services that meet customers current
and future needs. Today you will find DTDC offering
wide range of services like Express courier, cargo,
end to end supply chain solutions, Retail services like
ticketing solutions, bill payments, Mobile & DTH top
ups apart from Training supply chain professionals
through its supply chain training institute.

DTDC’s Customer profile cuts across the industry

verticals covering banking, insurance, telecom,
manufacturing and IT. Company provides excellent
solutions for E commerce business and has capability
of seamless integration of applications with the
customer providing efficient transaction and
database management.

DTDC has strategic equity participation by ADAG

group. DTDC plans to consolidate its growth and its
vision is to interface with customers more often in
their value chain by offering wide range of products
and services.

VISION AND MISSION

Vision
To be the most Admired and Successful Express
Distribution Company in India by meeting and
exceeding our Customers' expectation of services.

Mission

• To focus on Customer Loyalty and make it the

goal of our Organization.
• To encourage our people for adoption of new
technologies, processes and systems for
improved, reliable and speedy service.
• To relentlessly monitor to reach a minimum net
service level of 98% delivery.

QUALITY POLICY

• Satisfied Internal Customers, External

Customers and Business Associates
• Continual Improvements in products, Processes,
Services and Quality Management Systems

Satisfied, Motivated and committed Employees.

STRATEGIC INTENT

• To continuously improve our Line-haul

connections to achieve shortest possible transit
times.
• To save time by adopting ‘Right-First-Time
approach in every part of Business’
 To impartially select and develop employees &
service partners (Franchisees) for meeting our
quality service standard.

GOALS AND OBJECTIVES IF THE COMPANY

• WIN-WIN Relationship with everyone involved in

our Business.
• Transparency in all our Transactions.
• Understanding that our service efficiency is part
of customer’s balance sheet.

Protect the Environment by minimizing Pollution and

Reducing.
National Wastage

.
The five Forces and relation to DTDC
The threat of the entry of new competitors
Profitable markets that yield high returns will attract new
firms. This results in many new entrants, which eventually
will decrease profitability for all firms in the industry. Unless
the entry of new firms can be blocked by incumbents, the
abnormal profit rate will fall towards zero (perfect
competition).

 The existence of barriers to entry (patents[1], rights,

etc.) The most attractive segment is one in which
entry barriers are high and exit barriers are low. Few new
firms can enter and non-performing firms can exit easily.
 Economies of product differences
 Brand equity
 Switching costs or sunk costs
 Capital requirements
 Access to distribution
 Customer loyalty to established brands
 Absolute cost advantages
 Learning curve advantages
 Expected retaliation by incumbents
 Government policies
 Industry profitability; the more profitable the industry the
more attractive it will be to new competitors

India Couriers
Air Pronto Couriers
Airwings
Au Courier
Capitol Overseas Courier Service
Classic Couriers Pvt.
Countrywide Express Ltd.
City Courier Service
Eastern Air Couriers
Eastern Air Couriers, Pvt. Ltd.
Efex Courier
Gati Ltd.
JK International, Inc.
Orbit Worldwide Express
Transglobal Express Ltd.
Transworld Discount Courier
WHITES Courier 'N Cargo

The intensity of competitive rivalry

For most industries, the intensity of competitive rivalry is the
major determinant of the competitiveness of the industry.

 Sustainable competitive advantage through innovation

 Competition between online and offline
companies; click-and-mortar -v- slags on a bridge[citation
needed]

 Level of advertising expense

 Powerful competitive strategy
 The visibility of proprietary items on the Web[2]

[2] used by a company which can intensify competitive

pressures on their rivals. How will competition react to a
certain behavior by another firm? Competitive rivalry is likely
to be based on dimensions such as price, quality, and
innovation. Technological advances protect companies from
competition. This applies to products and services.
Companies that are successful with introducing new
technology, are able to charge higher prices and achieve
higher profits, until competitors imitate them. Examples of
recent technology advantage in have been mp3 players and
mobile telephones. Vertical integration is a strategy to
reduce a business' own cost and thereby intensify pressure
on its rival.

AFL :
One among the acknowledged leaders among the
logistics companies in India is AFL. Through its
domain of logistics services,the company has
delivered world class service in India. In 1979,the
company introduced the first ever courier service by
forming an alliance with DHL World Wide Express.
The company offers services like Logistics and
warehousing,Courier Company and Custom
Consultant.
DHL :
This company is one among the major logistics
companies in India. It is a market leader globally in
overland transport,air freight and international
express. The company ranks No.1 in the world in
contract logistics and ocean freight. The biggest
logistics and express network in the world has a
network in about 220 territories and
countries,72,000 vehicles,350 Aircrafts,36 hubs and
4,700 bases.
Blue Dart :
This logistics company is South Asia's top integrated
express package Distribution and courier company.
The domestic network of the company covers about
21,340 locations and provides service to 220
countries by the company's sales alliance with DHL.
It provides the best service like Free Pick up from
Your location,Regulatory Clearances,Real Time
Tracking,Free Computerized Proof of Delivery etc.
Gati :
The company is a key leader in then arena of
express cargo delivery and a significant one in the
supply chain management solutions and distribution
in India since the year 1989.The company provides
services like the WareHousing,Express Cargo etc.
Logistics Solutions of the company are
Warehousing,Supply chain Management. The
Distribution Solutions of the company are Gati
Surface Express, Gati coast to coast, Gati Air Express
etc.
Safexpress :
It is one of the largest express company in India.
The company offers the best and integrated logistics
solutions. In 2002 the Limca Book of Records
declared the company as the Largest Logistics
service Provider in India. The company has a
network over 550 locations in 28 states and 7
countries. It has 3000 weather proof ISO-9002
vehicles.
Ashok Leyland :
The leading provider of logistic vehicles for the India
Army is this company. It is a key leader in the
tractor-tailers and multi axle trucks. The company
manufactures buses,trucks,engines and special
application vehicles in India. It is promoting a new
company called Ashley Transport Services Ltd. for
exchange of information and integrated services
related to logistics in order to tackle the business of
freight contractors.
Agarwal Packers and Movers:
This popular Indian logistics company provides
logistic services like the home shifting,car packing
etc. across India. The company believes in keeping
technology and people and of course heart and soul
in the movement of the individuals respective items.
The company offers quality service in transportation
and packing.
First Flight:
This logistics company in India specializes in courier
services world wide. The multi-tracking programs of
the company are Domestic ,International,First
Wheels,First Wings and many others. The overseas
offices of the company are in
Malaysia,Singapore,UK,US,UAE, Quatar, Oman.
These are some of the competitors of DTDC which it
has to deal with currently. Due to the above
competitors it has to face severe competion,

The threat of substitute products or services

The existence of products outside of the realm of the
common product boundaries increases the propensity of
customers to switch to alternatives:

 Buyer propensity to substitute

 Relative price performance of substitute
 Buyer switching costs
 Perceived level of product differentiation
  Number of substitute products available in the market
 Ease of substitution. Information-based products are
more prone to substitution, as online product can easily
replace material product.
 Substandard product
 Quality depreciation

Following are the present substitutes of couriers and

because of which courier services if facing severe threat :

• Telephone
• E-mails
• Telegraphs
• Fax

However the courier services speacializes itself in case of

delivering goods and also time security.

The bargaining power of customers (buyers)

The bargaining power of customers is also described as the
market of outputs: the ability of customers to put
the firm under pressure, which also affects the customer's
sensitivity to price changes.

 Buyer concentration to firm concentration ratio

 Degree of dependency upon existing channels of
distribution
 Bargaining leverage, particularly in industries with
high fixed costs
 Buyer volume
  Buyer switching costs relative to firm switching costs
 Buyer information availability
 Ability to backward integrate
 Availability of existing substitute products
 Buyer price sensitivity
 Differential advantage (uniqueness) of industry
products
 RFM Analysis

DTDC is not pressurized by customers as DTDC has got

innovations in itself as a result of which it need not
worry about the prevailing competitors. Some of the
exclusive services provided by DTDC includes :

• Fast delivery
• Tracking of the sent couriers through net
• Brand name

The bargaining power of suppliers

The bargaining power of suppliers is also described as the
market of inputs. Suppliers of raw materials, components,
labor, and services (such as expertise) to the firm can be a
source of power over the firm, when there are few
substitutes. Suppliers may refuse to work with the firm, or,
e.g., charge excessively high prices for unique resources.

 Supplier switching costs relative to firm switching costs

 Degree of differentiation of inputs
 Impact of inputs on cost or differentiation
 Presence of substitute inputs
 Strength of distribution channel
 Supplier concentration to firm concentration ratio
 Employee solidarity (e.g. labor unions)
  Supplier competition - ability to forward vertically
integrate and cut out the buyer

Differentiation Strategy
Differentiation is aimed at the broad market that involves the
creation of a product or services that is perceived throughout
its industry as unique. The company or business unit may
then charge a premium for its product. This specialty can be
associated with design, brand image, technology, features,
dealers, network, or customers service. Differentiation is a
viable strategy for earning above average returns in a
specific business because the resulting brand loyalty lowers
customers' sensitivity to price. Increased costs can usually
be passed on to the buyers. Buyers loyalty can also serve as
an entry barrier-new firms must develop their own distinctive
competence to differentiate their products in some way in
order to compete successfully. Examples of the successful
use of a differentiation strategy are Hero Honda, Asian
Paints, HLL, Nike athletic shoes, Perstorp BioProducts,
Apple Computer, and Mercedes-Benz automobiles.

DTDC does believe in differentiating its services from

the other courier services so that it falls out from the
rest. Some of the exclusive services provided by DTDC
includes :

• Fast delivery
• Tracking of the sent couriers through net
• Brand name

Complete E commerce
solutions from DTDC
DTDC offers end to
end solutions for the
E commerce business.
Expert team within
the company develops
customised solutions
and offers seamless
integration with the
customer applications
so that customer can
integrate shipping
solutions to their E
commerce business.

DTDC core
competencies in
express shipping,
providing detailed
online shipment
information and
automated shipping
processes are the
perfect answer to the
emerging e commerce
needs. By integrating
DTDC services and
DTDC technology in
superior eCommerce
solutions, DTDC is
able to provide your
customers the most
crucial part of your
 busines which is end
mile delivery
solutions.

Online Way Bill Generation

DTDC's E commerce
solution can help you
with system
generated bar-coded
waybill at your site
facilitating an easy
process.

Few key features of DTDC E Commerce

solutions

Online address
» book: store and re-
use addresses
» Track packages
Schedule a courier
»
pick-up
Get customized rate
»
quotes
Create customized
»
shipment reports
Multiple Piece
Shipping: send
» multiple packages
on the same Air
Waybill
 Group shipping:
Send the same
shipment type to a
group of different
»
people without re-
entering the same
information for
each Air Waybill
» Customized reports
DTDC Indian
Address Validation
Tool- ensures that
customer-entered
»
shipping addresses
for the destinations
are correct at the
time of order.
Customer Value Additions
Customers can directly track their consignments at
our web site.
We have special computer based booking procedures
so that bulk consignments can be handled
efficiently.

Customers can directly track their consignments at

our web site inwww.dtdc.com using our
Consignment numbers or their own reference
numbers.
We provide group tracking for special customers so
as to improve their efficiency.
Our tracking is also available to GSM and CDMA
mobile users through SMS.
We can address customized data requirements of
our users, apart from the above facilities.
We have special computer based booking
procedures so that bulk consignments can be
handled efficiently.
We make extensive use of bar code scanners and
electronic weighing machines across our entire
network to ensure accuracy and integrity of
transactions, which ensures safe and efficient
transshipment of your parcels and documents.
DTDC provides customized solutions to meet the
requirements various industry verticals.

India – Key Economy Drivers

• Concept of courier services

had existed in India
for centuries in the
form of messenger services,
which were carried by:
o Pigeons

o Runners

o Horse Riders
 Birth,
Growth & Development
of Courier Service in
India

Birth, Growth & Development

of Courier Service in India

• The Indian Postal System

came into existence in 1774
• First Indian Post office Act
introduced in 1837
• Then came “Angadias” who
carried documents and precious
gems and jewels
 Birth, Growth & Development
of Courier Service in India
o The most unique Express
Service prevalent in India is
the “Dabbawalas”

• The organized Courier Industry

came into existence in 1977
• The Courier Industry started
gaining momentum in 1980’s

Birth, Growth & Development

of Courier Service in India

Domestic Players – Market Share

(Organised sector)
International Players – Market Share
(Organised sector)

Technology In Courier Industry

• Web Based Tracking &
Tracing of shipments
• Mobile / SMS Tracking facility

• Physical automations like

o Conveyor belts in hubs,

o Smart labels

o Overhead cameras on specially

designed docks & hub floors

• Hand held wireless devices
 Future
Of Courier & Cargo
Industry
• Courier & Cargo business
has become a mega market
• Industry steadily growing at the
estimated rate of 25% each year

• Very few players in the

organized sector

Future
Of Courier & Cargo
Industry
• Estimated growth in revenue of
INR 4,000 Crores (USD
 889 Million) and expected
to double in next 5 years
• Domestic airfreight market likely
to grow exponentially by 2010
• Attracting MNCs

DTDC OVERVIEW
• India’s largest delivery network
• Handles 10 million parcels a month
• 13,000 people in operations
• 3,700 locations
• Serves 10,000 Pin codes
• 10 Regional offices and gateways
• 240 International destinations
• Special services to SAARC
• ISO9000 Certified
• Reliance (ADAG) large shareholder
 Franchises
• Pioneer in Franchise Business
• 3700 in India
• 25 in US and UK
• 500 finished 10 years
• 1000 finished over 5 years
• Win-Win partnership
• Long term commitments
• Sales support
• IT link up - intranet
• Special schemes

TECHNOLOGY
• Web based tracking
• Electronic POD
• Over 100 people team
• 10 Years of investment
• IBM partnership
• Solid intranet
 • Linked with partners
• Bar coding of AWB
• 100% scanning

Services provided:
1.Domestic tracking via internet, SMS
8
2.DTDC’s E commerce solution that helps with system generated
bar-coded waybill at the
customer’s destination facilitating an easy process.
3.Customers can schedule a courier pick-up
4.Get customized rate quotes
5.Customer can create customized shipment reports
6.DTDC Indian Address Validation Tool- ensures that customer-
entered shipping addresses
for the de1stinations are correct at the time of order.

Challenges faced:
1.Does not own freighter aircraft.
2.Still developing its overseas expansion.
3.Repeat deliveries leading to higher cost

B.C.G MATRIX
To use the chart, analysts plot a scatter graph to rank the business units (or products) on the
basis of their relative market shares and growth rates.

 Cash cows are units with high market share in a slow-growing industry. These units
typically generate cash in excess of the amount of cash needed to maintain the business.
They are regarded as staid and boring, in a "mature" market, and every corporation would be
thrilled to own as many as possible. They are to be "milked" continuously with as little
investment as possible, since such investment would be wasted in an industry with low
growth.
  Dogs, or more charitably called pets, are units with low market share in a mature, slow-
growing industry. These units typically "break even", generating barely enough cash to
maintain the business's market share. Though owning a break-even unit provides the social
benefit of providing jobs and possible synergies that assist other business units, from an
accounting point of view such a unit is worthless, not generating cash for the company. They
depress a profitable company's return on assets ratio, used by many investors to judge how
well a company is being managed. Dogs, it is thought, should be sold off.
 Question marks (also known as problem child) are growing rapidly and thus consume
large amounts of cash, but because they have low market shares they do not generate
much cash. The result is a large net cash consumption. A question mark has the potential to
gain market share and become a star, and eventually a cash cow when the market growth
slows. If the question mark does not succeed in becoming the market leader, then after
perhaps years of cash consumption it will degenerate into a dog when the market growth
declines. Question marks must be analyzed carefully in order to determine whether they are
worth the investment required to grow market share.
 Stars are units with a high market share in a fast-growing industry. The hope is
that stars become the next cash cows. Sustaining the business unit's market leadership may
require extra cash, but this is worthwhile if that's what it takes for the unit to remain a leader.
When growth slows, stars become cash cows if they have been able to maintain their
category leadership, or they move from briefstardom to dogdom.[citation needed]

Relating DTDC to BCG matrix

Relating DTDC to BCG matrix we can try to place

DTDC in one of the above positions.
Studying the four categories in accordance to the
BCG matrix :-

QUESTION MARK:- DTDC cannot be placed in the

question mark position of the BCG matrix. It doesnot
consume much cash and its market position is also
satisfactory. This is the reason why we cannot place DTDC
in the question mark position.

STARS :- DTDC cannot be placed in the star position of the

BCG matrix the reason for it is that to be a STAR it is
mandatory for DTDC to have a high market share as well as
high growth potential in the market.

CASH COWS:- According to me this is the best place which

suits DTDC as in CASH COWS it generates a good amount of
cash in the market.