Jasjit Sethi, CEO, TCI Supply Chain Solutions: We plan to invest INR 200–250 crores in Capex annually to boost capacity for the next four years. We will expand services for chemical and cold chain.

1. How has been the business for TCI last year and through this year?

TCI’s business remains to be robust, with company’s adherence to its core business fundamentals of high degree of customer focus. We continue to stay invested in multimodal logistics as it has a direct bearing on reduction in GHG emissions leading to a positive ESG compliance for all our clients. Our focus on emerging verticals and innovative solutions for our customers has also beefed up the numbers. Essentially, the 10-15% growth on top-line and bottom-line in terms of guidance stands upright for the coming months.

2. Trends that will drive the shipping and logistics sector in the months to come?

• Customers will continue to be more demanding, not just in terms of cost but compliances as well. With increasing focus on reducing carbon emissions, there will be a push towards rail and coastal shipping. TCI, being one of country’s leading end-to-end logistics service provider, has been promoting multimodal solutions for more than a decade now, and will continue to do so.
• Improvement in asset-utilization across major ports will lead to decrease in congestion. Post experiencing the steep rise in maritime freight prices during the pandemic, the industry is now inching towards normalcy.
• Human resources need to be protected, because technology is just an enabler. Business has to happen on-ground with the intervention of skilled workforce.
• Risk mitigation and adaptability will be more important; as global supply chain disruptions have made the market volatile.

3. The current geo-political scenario and its impact on the global supply chains?

Global supply chains have been through rough weather for more than three years now. Starting with the pandemic that resulted in huge disruptions overall, declining populations across the globe & changed demographic patterns, reliance on excessive debt-financing, then the recent war in Europe, unprecedented energy crisis, global inflation – have been some of the major headwinds. Economies all around the world have been bracing up & strategizing to achieve the pre-pandemic stability.

Though India’s economic recovery compares well with most large economies of the world, there is vulnerability on account of enhanced inflation levels, reduced GDP growth rate, increasing current account deficit & increasing fuel price. To improve the situation, key structural changes are being brought about, in relation to sourcing and composition of imports as well as destination of exports; well-supported by Government of India’s large-scale initiatives to ease supply chain bottlenecks. 

4. What will be the major challenges the logistics community will face in the days to come?

• As stated above, inflationary pressures remain and will hit the market hard in the coming fiscal. Demand is expected to slow down. In fact, exports may reduce by a quarter in some sectors.
• Though we expect domestic consumption to sustain.
• Cost of compliances will go up.  Driver shortage. Inflationary impact on all indirect costs.
• Cost of client and employee acquisition.

5. Scenario of trade among south Asian nations?

A. The government is focusing on investments in South Asian region to bolster trade. Currently, trade among South Asian countries totals just $23 billion — far below an estimated value of at least $67 billion (Source: World Bank).

TCI has a strong presence in SAARC, especially BBIN countries. It provides logistics services in Bangladesh, Bhutan, Nepal, Sri Lanka, also connecting Myanmar with offices at borders and capital cities. Cross-border movement across the SAARC region is an area of growth for us.

6. Upcoming initiatives at TCI to better serve the trade?

1. At TCI, the aim has always been to serve the ever-evolving needs of the customer. Currently, sustainability and digital transformation being the key asks, are the primary focus areas.
2. We plan to invest INR 200–250 crores in Capex annually to boost capacity for the next four years. A large portion of this has been set aside for buying another ship that will aid seaways operations.
3. With dependability and trusted fulfillment deliveries being TCI’s main attributes, the Company is incubating high growth segments like Chemical & Cold-chain.