Mr. Raaja Kanwar, Managing Director, Apollo LogiSolutions Ltd. (ALL) brings a dynamism and passion to the company that has played a major role in creating a corporate culture that is sustainable and motivating. Mr. Kanwar spearheaded the diversification plans of the Apollo group. Part of the Apollo International Ltd. (AIL), he seeks to create a repeat of the success story of the parent company in this arena too. He is set to change the outlook of the logistics industry in India, as he believes that a player of repute will bring much needed organisation into the industry. Mr. Kanwar has been invited on numerous occasions to speak on various national and international forums. He is also an active member of numerous organizations, including the Global Leadership Group of Business Action to Stop Counterfeiting and Piracy (BASCAP), under the aegis of International Chambers of Commerce, Paris. He chairs the Federation of Indian Chambers of Commerce and Industry (FICCI) Digital Entertainment Forum. He is also a member of the Young President's Organisation and the Information and Broadcasting Ministry, Government of India, Core Group on "Anti Piracy and Exhibition Sector".
Apollo LogiSolutions Ltd. (ALL) is a 100% subsidiary of Apollo International Ltd. (AIL). Under Mr. Kanwar's leadership, ALL has achieved profitability within a few months of operation. ALL’s vision is to provide customized solutions for all logistics needs. The company’s mission is to be a significant player in logistics space, providing state-of-art equipment, infrastructure, manpower and IT systems. ALL aspires to play a pivotal role in the growth of infrastructure in India through combination of asset and service-based logistics solutions. The company aims to reduce delivery times and inventories for its customers enabling them to attain a competitive edge in international markets. ALL has also entered into a Joint Venture (JV) with Spire Group of Toronto, Canada to construct and operate temperature controlled warehouses in India. ALL is also in discussion with various leading global players to start 3PL business in India.
In an exclusive interaction with Hemant P. Maradia of IIFL, Mr. Kanwar says: "We are looking to achieve a valuation of close to Rs20bn in the next five years."
What was the rationale and thinking behind the Apollo group foraying into the logistics sector? How did this idea come into being?
Apollo International Ltd. (AIL) was set up in 1994 to lead our foray into our diversified sectors. We evaluated various options and realized that Logistics was one such sector that had so much more scope and demand.
The pricing of products depends on effective and optimal implementation of the entire Logistics Chain. This understanding led to various feasibility studies, discussions and the final decision to enter the industry.
What has been the experience and performance of the company since it started business?
In spite of the economic slowdown in the year of commissioning, Apollo LogiSolutions Ltd. (ALL) has handled close to 17,000 TEU s in less than half a year which is an excellent achievement for a new set-up.
What kind of roadmap have you drawn up for the company?
We are looking at setting up 8-10 CFS s / ICD s in the next five years. We also have plans to set up cold storage facilities and would subsequently like to venture into 3PL.
We are looking to achieve a valuation of close to Rs20bn in the next five years.
What is going to be the company’s USP since there are quite a few players in this space?
The biggest USP is the Apollo brand name that brings to mind the way we do business. We are governed by the highest standards of ethics and professionalism. In addition, we have an array of processes and systems in place which help in unified service levels while being flexible to market requirements.
Tell us about the investments made by the promoters in Apollo LogiSolutions? Would you need additional funding going forward?
The initial investments were ploughed in from within the Group as well as through debt. Going forward we would be looking at various options like private equity while also actively seeking partnerships from Groups having similar wavelength. We will have to evaluate all the options on a case to case basis.
Tell us about the infrastructure that has been set up by the company across India? What kind of expansion plans do you have going ahead?
We have set the ball rolling with a 50 acre facility at Panvel. Out of this, 17 acres is notified by the Customs. This is the facility where we have our CFS. Depending on the opportunities we can scale this up. We are also looking to develop the facility with a rail siding and in due course a cold storage facility.
In addition, we are looking at opportunities in setting up CFSs / ICDs across the Country. At present we are looking at Ahmedabad / Baroda, Cochin, NCR, Ludhiana, Hyderabad and a few other cities.
Which are some of the major challenges in this business? How are you gearing up to confront and overcome the same?
The biggest challenge is to constantly offer USP s over the already commoditized CFS business. We would like to scale up the use of technology, reduce manual intervention to the extent possible and offer unified service levels across all our businesses.
What kind of solutions and services do you provide to your customers?
At present we are providing transportation of inbound and outbound containers from and to the Port, storage and consolidation at our CFS s and any other value added services like labeling, bar coding, scanning etc.
We are looking to improve the information interchange to Customers in an effective and timely manner in order that they are able to take commercially sound decisions.
Tell us a bit about the investments you have made in your IT infrastructure? How important is IT in a logistics business?
Together with one of the leading IT Companies we have developed an enterprise wide web based system called Capella for the CFS domain. This was tested and implemented at our facility and is now being used in other CFS s India as well as internationally.
We are completely convinced that improvisations in our IT set-up will only increase our competitiveness amongst Customers. These improvisations need to reduce manual work and increase speed at which commercial decisions are taken.
Will you be also venturing into 3PL?
We are actively looking at some form of a partnership with an existing 3PL company and are already in discussions with a few companies for the same.
Customers today are increasingly looking to focus on their core competencies and would like to leave incidental activities like logistics to the experts.
We see ourselves providing that expertise in time to come.
Are you open to selling a stake in the company to a strategic partner?
We would be open to any well evaluated strategic partnership that adds value to the partners as well as to the Customers.