The global trade environment has been sluggish for the past few months. What has been the impact on your logistics operations?
The Russia–Ukraine situation continues to weigh on the global economy, disrupting supply chains and adding to inflationary pressures. Sanctions have led to the suspension of virtually all trade links between Russia and the West including rail freight services between China and Central and Western Europe. Owing to the global trade war and China’s authoritarian policies, there is a gradual shift of business from China, and India is emerging as a land of opportunities backed by abundant supply of resources, cheap manpower, geographical advantage and Government reforms on FDI etc.
The Indian logistics industry is continuously evolving at an exceptional pace providing necessary impetus to boost international trade through great advancements in infrastructural development and technology to foster its growth. There is continued focus on the part of the Government to convert India into a global manufacturing hub by boosting infrastructure and introduction of the National Logistics Policy (NLP) and Prime Minister’s Gati Shakti Programme are some of the few major initiatives in that direction. The growth in E-commerce industry is also driving the need for setting up premium infrastructure facilities backed with effective technological support in India.
During Financial Year 2022-23, Balmer Lawrie’s Logistics Infrastructure was able to achieve 32% growth in terms of imports, and 7% growth in terms of exports and the turnover increased by 18% compared to the previous year. However, due to cutthroat pricing and competition from the industry and reduction in dwell times of containers at CFS, the profit reduced by 15% in comparison to last year. The Logistics Services SBU achieved all-time record turnover for the second consecutive year. During the year, it achieved a turnover of Rs. 550 crores and registered topline growth of around 20% whereas growth in bottom line was 22% as compared to previous year. The growth was driven by incremental business in mainly Air Import, Ocean Import, Ocean Export and Express service. The Logistics Services SBU witnessed significant growth in top line as well as in bottom line despite pressure on margins on account of competitive forces. Reduced volatility in freight rates has helped bottom line movement in line with growth in topline.
Balmer Lawrie’s major focus has been to enhance ‘Customer Delight’ by providing integrated logistics solutions aligning Logistics Services with its pan India Infrastructure assets, Cold Chain and 3PL services. The Company has been servicing customers globally in close coordination with its worldwide Agents and Associates.
`The logistics infrastructure unit at Balmer Lawrie operates the Container Freight Stations. In which locations do you operate? What is the capacity of each CFS, services they offer and the hinterland served?
Balmer Lawrie is a one stop Logistics Solutions provider backed by pan India state-of-the-art infrastructure and worldwide network of Global Associates. It takes pride in being amongst the leaders in the Logistics Infrastructure sector in the country. Balmer Lawrie serves an array of corporate clients around the world and offer fast, reliable, and economical end-to-end logistics solutions. It has three state-of-the-art Container Freight Stations (CFS) at Mumbai, Chennai and Kolkata. A Central Warehouse at Andhra Pradesh MedTech Zone (AMTZ), Visakhapatnam. Balmer Lawrie in association with Visakhapatnam Port Authority, through the JV Company Visakhapatnam Port Logistics Park Ltd. (VPLPL) has a Container Freight Station at its Multi Modal Logistics Park at Visakhapatnam.
| CFS – CHENNAI | CFS – KOLKATA | CFS – MUMBAI | VPLPL (MULTI MODAL LOGISTICS PARK) – VISAKHAPATNAM | AMTZ – VISAKHAPATNAM | |
| Operations started in the year | 2000 | First CFS in the Eastern Region was set up in 1994 | 2000 | 2019 (CFS in 2023) | 2020 |
| Existing CFS details (in terms of area), capacity that we can handle in (TEUs) – | 22.78 Acres CFS area, 85000 sq.ft of covered warehouse 15,000 sq.ft of bonded warehouse space (open and covered) 2500 sq.ft of special bonded covered warehouse | 16 Acres concreted / paver blocked floodlit yard Merry Go Round facility using 15 rail wagons 80,000 sq. ft state-of-the-art covered warehouse with multi-tier racking facility Bonded warehousing facility also available | 26 Acres CFS area 84,000 sq.ft. total covered warehouse for Export & and Import cargo 5000 sq.ft of bonded warehouse space 4000 sq.ft of special hazardous material covered warehouse | Total area 53 Acres 24 Acres CFS area 11 Acres of domestic area 11.5 acres of semi developed area 58,125 sq. ft of EXIM warehouse 56,882 sq. ft of huge truck parking area Domestic Warehouse 15 chambers with the capacity of 3780 Pallets 1.38 Kms of Rail Siding with a capacity to handle 2 rakes a day. | 75000 sq. ft of ambient temperature warehouse including ramp area 2 chambers of 2500 sq. ft each cold storage facility with + 4 deg C capacity Huge truck parking area 2500 sq.ft of office area with conference room |
| Software details and various tech that we have (ex: RFID etc.) – | RFID Tracking, Icomet, Logistics Data Bank Readers are installed for Container Tracking | First to introduce RFID through GPS & GPRS technology for container tracking. First with EDI Connectivity in Eastern Region | RFID Tracking, Icomet, Logistics Data Bank Readers are installed for Container Tracking | Equipped with CFS Terminal Operation Software of Logstar | |
| Strategically located | 12 kms from Chennai Port and 19 kms from Ennore and Kattupalli Port | Strategically located at 2.5 kms from Kolkata Dock | Strategically located, 14 kms from all Nhava Sheva Terminals | 12 Kms from Vizag Port (VCTPL) & 15 Kms from Gangavaram Port (GPL) | 10 Kms from Gangavaram Port (GPL) and 29 kms from Vizag Port (VCTPL) Located inside the Andhra Pradesh Med Tech Zone |
| Trailer details | 100 trailers on long term contract for movement of containers | 75 trailers on long term contract for movement of containers | 180 trailers on long term contract for movement of containers and 13 owned trailers | 50 trailers on long term contract for movement of containers | |
| Hinterland served | Serves northern part of Tamil Nadu, southern part of coastal Andhra Pradesh and most of the industrial hubs located nearby | Nepal, Orissa, Chhattisgarh, Jharkhand and part of North India | Serves industrial hub of Maharashtra, North India and parts of Gujarat. It has good hinterland connectivity through road and rail networks. | All manufacturing units that have their individual set ups within the AMTZ premises can store their goods prior to distribution in the warehouse and need not look outside for this core service. |
What has been the impact of Direct Port Delivery/Direct Port Entry on your CFS operations? The National Logistics Policy has enabled CFS to undertake value added services. Are your CFSs leveraging on this opportunity?
With Direct Port Delivery (DPD) taking off in India in a big way towards reduction in logistics costs, CFS operators in the country face a grim future. However, the Logistics Infrastructure business of Balmer Lawrie is able to bring together a unique set of value proposition for its customers. The Company is expecting the CFSs to be the major contributor to the bottom line. Balmer Lawrie Logistics is in the process of establishing long term contracts with major Shipping Lines which will garner steady business. All the CFSs are in the course of having long-term association with major Import houses (DPD clients) which will ensure constant business. The Company is also conducting feasibility studies for opening ICDSs, Warehouses in various potential locations and expecting finalisation of projects in due course. Within the asset-centric business, the Company is able to offer a basket of solutions: Container Freight Stations, Ambient Warehouses, and a Multimodal Logistics Hub (through Vishakhapatnam Port Logistics Park Limited). The comprehensive services offered across pan-India locations make Balmer Lawrie Logistics a partner of choice to Importers, Exporters, Shipping Lines, CHAs, Freight Forwarders and the trade. So, while there is a wide variety of hurdles for the industry and the Company, it is expected that a combination of diversified service range, pan-India presence, technology-led customer intimacy, and knowledgeable resources will ensure that the Company is able to grow.
In which locations do you operate warehouses? Please share details on their capacity and services offered? What are the trends driving demand for warehousing space?
The Company’s Warehousing & Distribution facilities are presently fully operational at Kolkata and Coimbatore locations. The Warehousing & Distribution (W&D) facility at Kolkata offers modern warehousing and distribution services through its two units (W&D-HRC and W&D-Sonapur). CFS – Kolkata added 43000 sq. ft area of warehouse in addition to the existing 37000 sq. ft, and CFS – Chennai added 5000 sq. ft of bonded warehouse for handling Hazardous Cargo and added 20000 sq. ft warehouse space during Financial Year 2022-23 to increase focus on Warehousing activities. The Warehousing & Distribution facility at Balmer Lawrie plays a vital role in ensuring smooth flow of cargoes and in minimising transportation costs. It helps to improve the overall supply chain performance and optimise logistics operations.
Kolkata
The Warehousing & Distribution (W&D) facility at Kolkata offers modern warehousing and distribution services through its two units (W&D-HRC and W&D-Sonapur). While the W&D-HRC is attached to the CFS – Kolkata, W&D-Sonapur is internally connected to CFS – Kolkata via rail / road. Both the warehouses are connected to Kolkata Dock System and Haldia Dock Complex.
Kolkata – I (HRC)
- Area of 40,000 Sqft Warehousing Facility
- On-wheel stuffing / destuffing (through dock leveller)
- Modern selective pallet racking facility
- Customized manual cargo storage
- Covered bonded warehousing facility (12,000 sq.ft.)
- Value added services like palletizing, repacking, wrapping, choking, lashing, fumigation etc.
We provide dedicated and shared warehousing and distribution operations to ensure efficient services and timely delivery.
Kolkata – II (Sonarpur)
- Area of 4 Acres concreted/Paver blocked floodlit yard
- Rail siding cum stockyard services
- Bonded warehousing (open / covered)
- General / Non-bonded warehousing
- Stuffing / destuffing services
- ODC / project cargo handling / storage etc.
Coimbatore
Located in Kanuvai and close to major industries, W&D – Coimbatore offers all essential services for warehousing operations.
- 10,000 sq.ft. of covered warehouse
- 20,000 sq.ft. of open warehouse at Coimbatore
- Temperature-controlled environment
- Easily accessible to Industrial area
- Vehicle parking facility
Cold Chain Units of Balmer Lawrie
Balmer Lawrie with its four Cold Chain Units at Medchal (Hyderabad), Rai (Haryana), Patalganga (Navi Mumbai) and Chhatabar (Bhubaneswar) offers one-stop solutions to all cold chain requirements under the brand LOGICOLD. With a fleet of its own temperature controlled vehicles, the Company has the expertise to handle all products in the -25°C to +25°C range. The Cold Chain Units serve leading brands, catering to almost all industry verticals such as QSR chains, confectionary, food processing, pharmaceuticals, meat or poultry, and fruits and vegetables. Balmer Lawrie believes in going that extra mile to ensure that customers’ products are delivered on-time and in prime condition.
Balmer Lawrie has four Cold Chain Units with a total capacity of 16,000 pallets.
| Facilities | Navi Mumbai | Hyderabad | Haryana | Bhubaneswar |
| Total Plot | 2.00 acres | 1.41 acres | 2.20 acres | 1.5 acres |
| Total Capacity | 3840 pallets | 3402 pallets | 3800 pallets | 2000 pallets + 3000 MT |
Balmer Lawrie in association with Visakhapatnam Port Authority, through the JV Company Visakhapatnam Port Logistics Park Ltd. (VPLPL) set up a state-of-the-art Multi Modal Logistics Hub spread over an area of 53.2 acres at Visakhapatnam. This facility has a Cold Chain Unit with total capacity of 3780 pallets.
Trends driving demand for warehousing space
The Indian warehousing industry gathered more impetus and prominence especially during the last 4-5 years with notable triggers being the implementation of Goods and Service Tax (GST) in the year 2017 and grant of recent infrastructure status to Logistics industry. This paved way for reorganization of supply chain wherein the focus was more on improving the efficiency of supply chain and not merely on achieving tax savings. Resultantly, fragmented small warehouses are being replaced with large fulfilment centres in major key markets. The growth in Indian warehouse industry is led by various factors, prominent amongst them are initiatives of Government like Make-In-India in facilitating manufacturing at the local level, the implementation of GST, growth of e-commerce, digitisation, Government thrust on economy moving to cashless state, growing domestic consumption, favourable increase in international trade and growth in private and foreign investments in infrastructure. At present, warehousing in India is mostly concentrated in tier-I cities, however, with the rising demand for e-commerce activities and doorstep delivery services in the tier-II and tier-III cities, the warehousing sector in India is expected to grow significantly in the coming years.
Balmer Lawrie recently signed MoU with Central Warehousing Corporation for utilising their storage/warehousing space. What synergy does this MoU bring for both the organisations?
Balmer Lawrie and Central Warehousing Corporation (CWC), a Miniratna I PSE under Ministry of Consumer Affairs, Food and Public Distribution, GOI signed a Memorandum of Understanding (MOU) on 20th April 2023 for utilising storage / warehousing space of CWC for providing Cold Chain logistics, general warehousing and other ancillary services for a period of ten years from the date of sign off.
As part of the association, Balmer Lawrie and CWC will collaborate to leverage each other’s capabilities and complement each other to provide best-in-class services to customers in keeping with the growing demands of the segment. The organisations would work together to strengthen and expand their foothold not only in Cold Chain logistics but also general warehousing and distribution pan India. The associate with CWC will give a fillip to Balmer Lawrie’s Cold Chain Business Unit’s aspiration of achieving Rs 100+ crore by 2027 and also setting up Mini Temperature Controlled Warehouses having a capacity of 1500 to 2000 pallet position in Tier II and Tier III cities across the country. The synergy of the expertise of Balmer Lawrie in the cold chain field and the reach / presence of CWC at the most strategic locations will change the dynamics of cold chain logistics in the times to come. CWC has 458 warehouses across the country besides other infrastructure and Balmer Lawrie can leverage them to explore mutually beneficial business opportunities. The association will definitely have a positive impact on the logistics industry.
Balmer Lawrie had earlier announced plans for expanding warehousing, cold storage facilities and entering into new verticals like integrated logistics parks. What have been the developments on this front?
CFS – Kolkata added 43000 sq. ft area of warehouse in addition to the existing 37000 sq. ft, CFS – Chennai added 5000 sq. ft of bonded warehouse for handling Hazardous Cargo and added 20000 sq. ft warehouse space during Financial Year 2022-23 to increase focus on Warehousing activities.
The Company inaugurated its new Cold Chain Unit at Bhubaneswar in July 2022. Balmer Lawrie’s Cold Chain Unit has already marked its presence in Southern (Hyderabad), Northern (Rai, Delhi NCR) and Western (Patalganga, Navi Mumbai) parts of India and with its footprints in the Eastern region, along with its Temperature Controlled Vehicles, it is all set to service pan India customers as a one-stop shop Cold Chain solutions provider.
The Container Freight Station operations within the Multi Modal Logistics Park of Visakhapatnam Port Logistics Park Ltd. formally commenced on April 24th, 2023 in Visakhapatnam. Balmer Lawrie joined hands with Visakhapatnam Port Authority for setting up the state-of-the-art MMLP spread over an area of 53 acres with the objective of significantly contributing to the Logistics goals of the nation and also meet the growing demands of the region. The MMLP has the capability to accommodate / handle both Exim and Domestic cargo. Exim area has the CFS, Warehousing, Cold Storage / Temperature Controlled Warehouse, Open Cargo Storage, Hazardous & Non-Hazardous Cargo Handling, Truck Parking etc. The existing facility of VPLPL is perfectly in line with Prime Minister’s Gati Shakti initiative.
Tell us about your first and last mile connectivity services? Balmer Lawrie is an integrated logistics solution provider in the organised sector offering a comprehensive bouquet of services like international freight, customs clearance, door-to-door delivery through local and last-mile transportation and domestic / EXIM warehousing. The Company has its own fleet of Temperature Controlled vehicles and continuously collaborates with the various stakeholders in the supply chain to ensure first and last mile connectivity services to any part of the globe. Balmer Lawrie has always believed in delivering value through technology offerings to customers. It has kept pace with the technological advancements in the field of logistics like RFID, WMS, GPS enabled real time tracking and temperature monitoring, and is adopting automated solutions, analytics, CRM etc. in its future logistics projects. The logistics business is also exploring technology like Robotics, IOT, AI and other green technologies to take on the challenges of the future. Be it freight forwarding (sea, land and air), cold chain logistics or 3 PL, Balmer Lawrie has all the necessary infrastructure to ensure last mile delivery of any type of , and has been servicing a large number of esteemed customers across varied industry segments.
