Singapore offers a great business opportunity for Gati, a leader in express distribution and supply chain solutions in India. The company set up operations here two years ago to use Singapore's strategic location to expand its business activities into the fast-growing Asian region.

By numbers alone, Gati International, the company's global arm, has seen its revenue grow from S$2 million (US$1.5 million) to S$9.6 million (US$7 million) in the past three years, and the Singapore subsidiary has contributed significantly to this increase. Its other international offices include China, Japan, Hong Kong, Thailand, Nepal and Sri Lanka.

Recognising its encouraging start, the Singapore Economic Development Board (EDB) presented Gati with the Regional Headquarters Award on 6 May 2008. This would allow the company to further tap on the Republic's unique suite of capabilities, such as excellent business infrastructure and connectivity to other markets in Asia-Pacific. The subsidiary currently has about 16 employees, and services MNCs such as Microsoft and Dell, among others.

Aw Kah Peng, Assistant Managing Director, Industry Development, EDB, says, "Singapore is a critical logistics node within Asia that delivers integrated, cutting-edge supply chain solutions for the global market. We are proud to have Gati locate its regional headquarters in Singapore. Gati will add to the vibrancy and diversity of the logistics and supply chain sector in Singapore - the Asian base for the world's top third-party logistics service providers (3PLs)."


Business-friendly environment

According to Mahendra Agarwal, Managing Director and CEO, Gati, "Singapore is the best place in Asia-Pacific for an Indian company looking to expand outwards." He also considers the city-state to be an ideal meeting place for the company's business partners, due to its cultural similarities and excellent connectivity with the pulse points of the region and the world.

Gati, which has more than 18 years of experience in the express distribution business, has been actively pursuing its policy of partnering companies from other countries to expand its market share and improve its bottom line. This is to complement its "India-centric" business model, which calls for shipments from India to be delivered to other markets either directly or through one of its business partners in other countries and vice versa.

It started its freighter services in October 2007, in collaboration with Air India, to carry shipments within India. The company has also just launched its third freighter service line from Kolkata to Mumbai this year. Adding to this, Gati owns four ships that provide connectivity along the Bay of Bengal and Yangon, Myanmar. As for its surface network, the company has over 4000 vehicles on the road, covering 594 out of 608 districts in India. It also runs parcel express trains between Mumbai and Guwahati, which cuts the delivery time by half when compared to road network on certain routes.

Full suite of services

Agarwal is convinced that the introduction of its freighter service was a necessary addition to stay ahead of the competition. This, he believes, will provide clients with a full range of services - from air, sea, land and rail - catering to the diverse needs of its customers.

Express distribution aside, Gati has 1.5 million sq ft of warehousing facilities across all major cities, thus offering world-class single window solutions to customers. Whether it is flexible point-to-point distribution solutions or complex end-to-end integrated logistics solutions or supply chain management, Gati has a good track record.

But it is international growth that is vital to bring Gati to the next level. Agarwal notes that the company's main growth driver would be to introduce its 3PL services abroad. By 2009, Gati plans to focus more on its overseas operations by introducing its portfolio of services presently available in India abroad.

Meanwhile, Agarwal projects that the company's international revenue would contribute eight to nine per cent to Gati's turnover within the next two years before turning into double digits thereafter. And with its future expansion plans firmly rooted in Singapore to tap into the country's strengths, Gati is primed for success.