In a candid interview with TransREporter, KK Agarwal, Chairman & Managing Director of Darcl Logistics, talks about his journey, DARCL association with CJ Logistics and the impact of GST on the Indian logistics industry.
Q- You have been at the helm of Darcl Logistics for more than 40 years now. How has the journey been?
A- We began our operations in 1975 as a family business. We had modest but sound beginnings, starting with a single truck plying between Delhi and Assam. Over the last four decades, we have developed into an organisation with a Pan India network. We have expanded our service portfolio to include diverse skills and industry sectors to come forward as the foremost operator with a satisfied customer base of over 2000 companies. With around four glorious decades of growth and expansion, we have acquired diverse capabilities to arrive at this reputed position today.
Q- Give us a temperature check. How are things going with the transition so far?
A- I think our association with CJ Logistics can be a good way to spread out our company activities in the other side ofthe world. They have in-house expertise in various fields, hence we would be able to leverage on CJ’s strengths including its technology systems and solutions. Hopefully, we shall integrate our logistics and administrative activities, resulting in a larger network and more cost-efficient operation.
Hopefully, we shall integrate our logistics and administrative activities, resulting in a larger network and more cost-efficient operation.
Q- Can you brief us about your national and international presence? What are the company plans in order to expand and maximise its geographical reach?
A- Our wide-ranging network consists of 178 locations in major industrial and port towns. We have extended network in the neighbouring countries border towns of Bhutan, Bangladesh and Nepal.
Q- How in your opinion, GST is going to impact the Indian logistics market and to your firm?
A- The new GST regime will absolutely have a noteworthy bearing on the way transportation and storage of goods happens across the country. It will improve the flow of goods on account of reduction in turnaround time as value-added tax- or VAT-related check posts will be removed. This may further lead to 15-20 per cent reduction in truck stoppage time. As I said, we can expect a more competent and organised logistics sector to develop progressively.
As I said, we can expect a more competent and organised logistics sector to develop progressively.
Q- What are the major challenges and opportunities for the company as well as the industry as a whole?
A- The logistics sector in India has today become an area of priority. Broadly speaking, the Indian logistics sector comprises the entire inbound and outbound segments of manufacturing supply chains. This sector, still, is fragmented and run by a multitude of individual players in the absence of a formal regulatory structure governing it. Even during lean business seasons, the costs linked with travel, for example, inter-state permits, check posts, licensing etc. remain constant. The transportation market in India is likely to continue offering noteworthy opportunities to all concerned Stakeholders.
Q- How has the company grown in the last five years? What are the main triggers for growth?
A- Darcl has evolved to build up a range ofcapabilities. Today, we extend a host of services which include Freight Forwarding, Project Logistics, In-Plant Transportation and Rail Transportation, among others. Boasting dedicated divisions with clear focus areas, Darcl has consequently instituted itself an active operator across these logistic domains. Appreciating the difference in capabilities demanded, each of these divisions are led by people with the right set of experiences and acumen. At the same time, these divisions share some very useful synergies in terms of fleet arrangements, network and best practices, consequently tying them together to form a very strong and united Darcl. The successes at Darcl are supported by a robust infrastructure, state-of-the-art technology, customer centric approach and professional management. Combining them, we deliver customised and integrated solutions, venturing further towards enabling logistics success for our customers.
Q- How does Darcl Logistics fare against industry competitors?
A- The philosophy driving our efforts is a commitment to accomplish the logistics requirements of our customers, which differentiates us in an ardent manner.
Combining them, we deliver customised and integrated solutions, venturing further towards enabling logistics success for our customers.