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Over the past few years, Apollo LogiSolutions has combined forces with global partners, expanded reach and acquired cutting-edge technology to emerge as a comprehensive logistics solution provider in the fragmented logistics sector
The Indian logistics sector provides a host of opportunity to grow and prosper, and this is evident if one sees the growth trajectory of Apollo LogiSolutions (ALS), which is today India’s leading integrated logistics solutions provider. The company is a 90 per cent subsidiary of Apollo International Limited (AIL). About eight years back, AIL wanted to get into a new sector and therefore looked at different industry segments such as mining and infrastructure. It zeroed on the logistics sector because it was a virgin territory, loads of opportunities were available and there was a tremendous amount of scope to grow. Thereafter, AIL looked at various segments of the logistics sector and zeroed on the container freight station (CFS) business, because the profitability was very high and there were very few entry barriers. It started with a CFS in Panvel, and today is among the four largest logistics provider of the area. The Panvel CFS caters to the container traffic of the Jawaharlal Nehru Port (JNPT) and is growing tremendously with each passing year with a capacity of handling 10,500 teu per month. It is strategically located on the outskirts of Panvel, with close connectivity to the city through Mumbai-Pune Expressway. The CFS is spread across 50 acres of land, out of which an area of 17 acres is functional while future expansion plans are in progress for the rest of the land. AT ALS, technology is the driving force and the company largely emphasises on automating processes and bringing the latest logistics technology to India. The CFS is operated through a single window mechanism that enables the company to manage operations smoothly. Panvel CFS operations are monitored through a fully automated tracking system and the facility is equipped with reach stackers, empty handlers, forklifts, mechanised cranes and many trucks and trailers that facilitate flexibility in movement. At the CFS, ALS has installed most advanced techniques for container stuffing and de-stuffing. For efficient goods storage process and handling, an 8272 sq mtr wide general warehouse has been setup. It also houses a bonded warehouse area spread across 1,608 sq m. The paved container yard is spread over an area of 61322 sq m with 840 ground slots. There is open yard storage for heavy consignments such as iron, steel, other metals, and heavy duty machinery. The CFS is closely guarded by installing best in class security systems with close circuit cameras and professional security personnel and arrangements.
Thanks to the Panvel venture, ALS has emerged as a significant contributor to the growth story of AIL. After its success in Panvel, ALS wanted to spread it wings further, and therefore in 2013, it acquired Kailash Shipping Services (KSS), a Chennai-based full service logistics solutions provider located strategically close to the Chennai and Ennore ports. KSS operates from a CFS at Chennai that is spread across nine acres and is located close to the proposed Chennai’s mega container terminal port, with a projected capacity to handle four million teus per annum. KSS warehouses are modern, well equipped and provide high-end services such as quality control and automated processes. KSS also provides services for customs clearance, cargo movement and handling, project import, sea freight and air freight brokerage, export customs facilities, cargo pickup and handling and export consolidation. Since its acquisition by ALS, the profits of KSS have tripled and from 200 teu it is now handling 4,000 teu
Indeed the company has become a big force to reckon with in south India. After being successful in the CFS business, the company was looking at some more value creation, and therefore it went for the freight forwarding route. But it did not want to build a huge freight forwarding business as the margins are not very high and third party logistics is not fully appreciated in India. Therefore, it looked for a partner who could support it. With a vision to become one of the leading integrated third party logistics services providers, ALS got into a joint venture with a German company, FIEGE, to form Apollo Fiege Integrated Logistics (AFIL). The 60:40 joint venture between the two establishments, where 60 per cent is held by ALS, was formed to provide strategic, end-to-end logistics solutions to customers. FIEGE brought with it 140 years of industry experience and a strong presence in 200 locations across 70 countries. Today, Apollo Fiege operates in key logistics segments that include customs brokerage, freight forwarding, contract logistics, transportation and other value added services across a range of business sectors. In a short span of 15 months, Apollo Fiege has established 25 offices, over 17 warehouses pan India and a has a strong team of 250+ professionals with expertise in all facets of the logistics industry.
Goods movement also needed to be controlled to make Apollo Fiege more profitable, and therefore, ALS acquired controlling stake in the UAE-based Clarion Shipping Services LLC. This acquisition not only helped ALS leverage Clarion’s global footprint at the Middle East, Africa and South East Asia, but also provided access to global clients across segments. The company earned a matchless distinction in customer loyalty near 100 per cent customer retention through its dedicated and capable workforce. Clarion’s range of services include global ocean and air transportation, LCL and FCL services, import and export consolidation, land transportation, warehousing, distribution and logistics services, break bulk services, NVOCC, Customs clearance and brokerage. Clarion owns the single largest Warehouse in Jebel Ali.
After establishing itself well in the logistics sector, the company also realised that the backbone of good logistics is IT. Initially it was on other’s IT platform. But it wanted to develop its own IT platform which was modern and therefore it took a majority stake in a company and now has become a leading IT platform provider for many CFSs. Apollo International has also forayed into the ecommerce business by starting a company called Apollo Lycos Netcommerce, in joint venture with Lycos – a widely known global internet brand. Lycos has global expertise in digital media, technology, marketing and in setting up online presence for large brands globally; while Apollo contributes its expertise in logistics, inventory management and reverse logistics. The joint venture aims at enabling and ensuring a full-cycle fulfilment from setting up, online brand promotion, digital marketing of their products and services, fulfilling orders, ensuring data security and consumer privacy, inventory tracking and management, order delivery and reverse logistics.
Indeed, throughout its journey in the last few years, ALS has combined forces with global partners for acquiring global reach, cutting-edge technology and operational excellence through best practices. This has enabled the company to emerge as a comprehensive solutions provider in the fragmented logistics industry. With the international joint ventures and acquisition of an Indian logistics company in the first few years of its establishment, ALS has the assets across the logistics supply chain to meet the needs of varied customers. Its unparalleled growth trajectory will continue in the future also. The company has several projects in the pipeline including a CFSs in Kattupalli and Tuticorin, and an ICD in Muradabad. Another ICD in Kashipur is about to be operational in the near future. For this ICD, ALS has partnered with India Glycols Limited. The facility would be at Bazpur Road at Kashipur, the industrial gateway to Uttarakhand State. The ICD will provide multi-modal logistics solutions to industrial growth in Uttarakhand. With the commissioning of this facility, logistics movement for both inbound and outbound cargo would become more dependable, reliable, and economical and would also ensure on-time delivery of goods along with enabling better inventory management.
According to its management, ALS has had most fascinating growth trajectory because of the challenges that it has successfully met especially in ensuring seamless flow of operations at all hours. Indeed, companies like ALS will go a long way in shaping India’s maritime and logistics sector. Experts aver that other ICDs and CFS should make it their role model in order to ensure that India becomes an international logistics hub.
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