<dhhead>MANAGEMENT DISCUSSION AND ANALYSIS</dhhead>
In the financial year 2023-24, surpassing projections, India sustained its status as one of the fastest-growing economies worldwide, a testament to its strategic focus on structural reforms aimed at fortifying macroeconomic fundamentals.
Indias emergence as the fastest-growing economy among G20 nations underscores the effectiveness of these reforms. The adept management of the COVID-19 pandemic and navigation of geopolitical challenges further strengthened Indias position, ensuring sustained outperformance on the global stage. Notably, Indias contribution of over 16% to global growth in 2023 highlights its pivotal role in shaping the world economy. At the heart of Indias economic resilience are stability and comprehensive structural reforms. Investments in transformative projects such as the Bharatmala highway, Sagarmala port development, and Smart Cities Mission exemplify the nations dedication to infrastructural advancement and economic progress. Additionally, Indias decade-long emphasis on cultivating a robust digital economy has positioned it as a hub for innovation and technological excellence, influencing the global digital landscape.
Aligned with Indias growth trajectory, Blue Dart achieved a significant milestone with the inauguration of its central presence in GIFT City, Gujarat, catering to evolving customer demands. Equipped with cutting-edge infrastructure and seasoned personnel, our GIFT City facility introduced a 20-hour delivery service from key metropolitan cities, ensuring next-day delivery commitment. Furthermore, our investment in a new facility in Guwahati addresses the logistics needs of Northeast India, contributing to the regions economic development. Moreover, we expanded our footprint by inaugurating 40 new franchisees and company-owned retail outlets, enabling customers to ship to over 56,400 locations across India. This strategic expansion demonstrates Blue Darts commitment to strengthening nationwide connectivity. On the modernization front, we introduced the API Gateway to streamline customer interfaces, simplifying customer onboarding. Additionally, the launch of our Unified Shipping API Software Platform empowers Micro,
Balfour Manuel, Managing Director, |
Blue Dart Express Limited |
Small, and Medium Enterprises (MSMEs) as well as Large Enterprises across India, addressing all their logistics requirements. We also pioneered digital parcel lockers at selected post offices in collaboration with India Post, offering customers an alternative delivery method, streamlining the process, and enhancing convenience. As part of the DHL Group, Blue Dart remains steadfast in our commitment to clean operations for climate protection, being a great company for all, and being a highly trusted company. We actively work towards fulfillingthe Sustainable Development Goals (SDGs) set by the UN, demonstrating our dedication to climate protection, disaster management, and education through various programs.
We believe people are our greatest asset, and ensure a motivating, safe, and inclusive working environment for all employees. In 2023, Blue Dart was recognized as a Great Place to WorkR for the 13th consecutive year and received the distinction of being a Top Employer in 2024. As an ‘Equal Opportunity Employer,’ we embed robust policies and initiatives aimed at empowering women into our DNA, ensuring a seamless balance between personal and professional aspirations. Additionally, Blue Dart was recognized as Dun & Bradstreet India’s Value Creator 2023 in Transport Logistics and was awarded ‘Best Express Cargo Service Provider’ at the India Cargo Awards 2023. Furthermore, Blue Dart was acknowledged as a Well-Known Trademark by the Indian Trademark Registry in 2024.
As Blue Dart celebrates these achievements, we reaffirm our commitment to serving our customers with excellence, striving to redefine benchmarks of success and aiming for even greater feats. With a focus on innovation, sustainability, and inclusive growth, Blue Dart remains poised to seize the myriad opportunities on Indias growth trajectory, advancing towards a future of boundless possibilities.
GLOBAL ECONOMIC OVERVIEW1
The year 2023 unfolded at a time when the cure sometimes felt worse than the ailment itself. Central banks responded with stringent monetary policies, aiming to rein in skyrocketing inflation. While this strategy seems to have yielded results, it came at the expense of economic stagnation in many regions and continued pressure on consumer spending.
Across different nations, certain overarching themes emerged. Monetary policy exerted significant influence on output and growth prospects, prompting increasing calls for relaxation. However, the dilemma facing many central banks remains palpable, as they tread cautiously, wary that easing measures could trigger a resurgence of inflation.
The momentum of international trade as a growth engine has dwindled, with global trade growth slowing to 0.6% in 2023, projected to rebound modestly to 2.4% in 2024. The report highlights a shift in consumer expenditure from goods to services, alongside escalating geopolitical tensions, disruptions in supply chains, and the enduring repercussions of the pandemic, all contributing to the impediment of global trade.
Furthermore, concerns persist regarding the impact of a rising tide of protectionism and de-globalization in politics, affecting supply chains and traditional trade patterns that have historically underpinned numerous economies. Notably, emerging beneficiaries like Mexico and Vietnam are poised to exploit the void left by evolving trade dynamics, a trend warranting close observation in 2024.
Looking ahead, 2024 may prove crucial for assessing the repercussions of stringent economic conditions on the corporate landscape. A wave refinancingamidst a challenging of debt environment significantstrain on business leaders could place striving for respite from prolonged adversity. Coupled with persistent geopolitical uncertainties, the year could pose formidable challenges for many.
The effects of tightened monetary policy to mitigate inflation are anticipated to temper consumption and investment activities in 2024. A mild deceleration is foreseen in global economic growth, with GDP projected to reach 2.9% - marking the weakest growth profile since 2001, excluding the peaks of the global financial crisis and the COVID-19 pandemic.
In the United States, the worlds largest economy, a decline in GDP growth from 2.5% in 2023 to 1.4% in 2024 is expected. Various factors, including elevated interest rates and a softening labour market, are likely to dampen consumer spending, a pivotal driver of the economy.
Meanwhile, the GCC states are positioned to navigate through a decelerating global economy adeptly. Factors such as a relaxation of OPEC+ oil production quotas, robust growth in key Asian markets like India (6.3% real GDP growth) and China (4.2%), and sustained government investment aligned with economic diversification objectives are anticipated to bolster GDP growth to 3.7% in 2024. Developing countries present a mixed picture, with Africas growth forecasted to marginally increase from 3.3% in 2023 to 3.5% in 2024. However, the report highlights that the least developed countries (LDCs) are projected to grow by 5.0% in 2024, falling short of the 7.0% growth target set in the Sustainable Development Goals (SDGs). Persistent challenges such as high debt levels and limited fiscal space remain prominentconcernsforthese . nations India stands poised for robust GDP growth, instilling optimism among global companies. Nevertheless, unlike their counterparts in India, global companies maintain a degree of caution in their forecasts for the year ahead.
INDIAN ECONOMIC OVERVIEW2
Indias economic landscape saw significant notable improvements across key indicators. The current account deficit (CAD) narrowed to 1.9% of GDP, poised to decrease further in the coming fiscal year, while foreign exchange reserves surged to an impressive US$568 billion. Concurrently, the inflation rate stands at a manageable 5%, with the fiscal deficit targeted to be 5.9% of GDP in fiscal year 2024 A central driver of Indias economic dynamism has been its pursuit of innovation and technological advancement. The country witnessed the emergence of novel products and solutions tailored for its vast consumer base, serving not only as a testing ground but also as a springboard for scalable opportunities. Government policies and initiatives played a crucial role in nurturing innovation, facilitating the development of essential infrastructure, and ensuring security and responsiveness in the ecosystem.
The integration of technology-led solutions has catalysed transformative changes, fostering greater financial inclusion through innovative digital payment modes like the Unified Payments Interface (UPI). Moreover, initiatives such as account aggregator networks have facilitated the formalization of credit, while online tax platforms and FASTag implementation have effectively curtailed revenue leakages. The adoption of FASTag alone has led to a remarkable increase in toll revenues and substantial savings in fuel costs, underscoring the efficacy of technology-driven interventions. A parallel driver of Indias growth narrative has been the concerted focus on enhancing niche and complex manufacturing sectors alongside the development of requisite physical infrastructure. Despite manufacturing accounting for a modest 15% of GDP, challenges such as competitiveness constraints, inflationary pressures, and operational limitations have hindered sectoral growth. Micro, small, and medium enterprises (MSMEs), integral to the manufacturing ecosystem, have also grappled with impediments affecting their scalability and contributions to the economy. Encouragingly, government-led initiatives have garnered substantial investment commitments, laying the groundwork for significant capital expenditure in the coming years. Increased manufacturing capacity has bolstered exports and narrowed trade deficits in select high value goods segments, signalling positive strides towards enhancing Indias global competitiveness.
The Indian economy exhibited resilience in the December quarter of FY24, surpassing expectations with a robust growth of 8.4%.This shifts. performance, buoyed by robust showings in the manufacturing, electricity, and construction sectors, emphasizes the economys underlying strength.
Capital infusion by the government and vibrant manufacturing activity have been instrumental in driving growth in 2023. Continued policy support and a sustained focus on infrastructure development are anticipated post-general elections, fostering an environment conducive to sustained economic momentum.
Moodys optimistic outlook reflects expectations of a resurgence in private industrial capital spending, propelled by supply chain diversification incentive (PLI) scheme aimed at bolstering key manufacturing sectors.
Looking ahead, Indias GDP is poised to maintain a growth trajectory, underpinned by robust government capital expenditure and favourable macroeconomic indicators. However, addressing consumption disparities, particularly in rural areas, and mitigating pervasive income inequality remains an imperative challenges for sustained economic progress.
GLOBAL LOGISTICS INDUSTRY
In 2023, the global logistics market exhibited remarkable resilience and growth despite facing challenging circumstances, reaching a value of USD 9,407.5 billion and showcasing a robust trajectory. Projections suggest further expansion, with the market anticipated to grow at a Compound Annual Growth Rate (CAGR) of 6.4% between 2023 and 2032, culminating in a value of USD 15,978.2 billion by 2032.3 This growth was spurred by the proliferation of e-commerce, which served as a significant catalyst for the markets upward trajectory. The increasing preference for online shopping among consumers has led to heightened demand for efficient logistical solutions to ensure seamless deliveries. This trend extends beyond Business-to-Consumer (B2C) markets, as Business-to-Business (B2B) e-commerce platforms also heavily rely on logistics for streamlined operations.
Furthermore, the rising globalization of industries has driven the demand for comprehensive logistics solutions to effectively manage cross-border transactions. Integration of advanced technologies such as Artificial Intelligence (AI), Machine Learning (ML), and the Internet of Things (IoT) has further enhanced operational efficiency, route optimization, and predictive analytics within the logistics sector.
With geopolitical tensions between the United States and China drastically increasing in the past year, global supply chains have undergonesignificant worldwide are compelled to diversify their supply chains to mitigate disruptions, reduce risk, and increase supply continuity. This shift has been necessitated by the escalating geopolitical tensions, particularly between the two largest economies, the United States and China.
The interest in diversifying sourcing options beyond China has surged. However, the capacity of the United States and other countries to absorb this shift remains limited. Operating within this new global supply chain landscape requires companies to adopt a strategic approach. Rather than completely avoiding business with China, the focus should be on diversifying the supplier base to enhance resilience. benefits and the governments production-The COVID-19 pandemic underscored the concentration risk posed by over-reliance on China for goods, services, parts, and raw materials. Heightened geopolitical tensions further underscore the urgency for companies to de-risk their supply chain footprint and source from multiple regions. To facilitate this transition, companies must empower their supply chain and procurement teams with advanced technologies.
Many companies still rely on outdated manual processes or traditional tools, leading to a lack of visibility throughout their supply chains. Leveraging AI and automation can provide real-time insights and enables smarter decision-making regarding sourcing strategies on a global scale.
While the trajectory of geopolitical tensions remains uncertain, companies can enhance their resiliency by diversifying their supply base. This not only mitigates risks associated with geopolitical uncertainties but also ensures continuity of supply in the face of various disruptions. Emergingmarketspresentsignificantgrowth opportunities due to a burgeoning middle class and increasing internet penetration.4These regions, once considered challenging due to infrastructural constraints, are now viable markets owing to investments in infrastructure and favourable regulatory environments. Moreover, the shift in manufacturing bases to countries with lower operational costs are fuelling demand for efficient logistics solutions in these areas.
Sustainability has emerged as a key focus area within the logistics industry in response to intensifying concerns over climate change. Companies are increasingly investing in electric fleets, sustainable packaging, and route optimization to reduce carbon footprints and enhance efficiency. Incorporating these sustainable practices not only contributes to environmental conservation but also fosters a positive brand image in an eco-conscious marketplace. The year 2023 witnessed resilience and adaptation within the logistics sector, despite unprecedented challenges. The industry demonstrated agility in navigating supply chain disruptions and with technology serving as a key fluctuating enabler by driving automation, real-time tracking, and monitoring across the supply chain. Looking ahead to 2024, the global logistics market is poised for transformative change. Predictive analytics and demand forecasting will play a crucial role in anticipating consumer trends and aligning operations accordingly. Last-mile delivery solutions will remain a focal point, emphasizing speed, accuracy, and cost-effectiveness. Additionally, there will be a heightened focus on building resilient supply chains and mitigating risks posed by geopolitical uncertainties, natural disasters, and public health crises. Collaboration will continue to be a driving force, enabling stakeholders to pool resources, share capacities, and enhance overall resilience.
LOGISTICS INDUSTRY IN INDIA
The Indian freight and logistics market is estimated to grow at 8.8 percent annually to USD 484.43 billion by 2029 from around USD 317.26 billion in 2024 due to technological advancement. The integration of cutting-edge technologies and advancements in intralogistics automation, warehousing, and transportation management heralds a transformative era for the logistics sector in India. The Indian freight and logistics market is poised for remarkable growth.6 The Indian logistics industry hasundergonesignificanttransformation over the years, driven by advancements in digital technologies, government reforms, changing consumer preferences, and the growth of the eCommerce sector. Indias GDP has continued to expand, reaching Rs. 3.45 trillion in 2023, contributing about 4.2% to the global GDP. Government reforms, infrastructure development, and the thriving transportation and retail sectors are the primary drivers of growth in the Indian logistics industry. India’s logistics sector would expand at a Compound Annual Growth Rate (CAGR) of more than 10 percent, from $200 billion in early 2020 to at least $320 billion in 2025. With the grant of infrastructure status to logistics, the industry has witnessed increased investment. This growth trajectory was propelled by technological advancements and policy reforms, signifying a notable moment for Indias logistics landscape.
Digitalization has reshaped various aspects of logistics management in India. Technologies like the Internet of Things (IoT), artificial intelligence (AI), and blockchain are revolutionizing freight management, port operations, and warehouse management. The adoption of these technologies has led to increased efficiency and reduced costs. Furthermore, warehouse Automation optimizes operations, enhancing efficiency, and driving cost-effectiveness across the industry. Road freight remains the predominant mode of transportation in India, reinforced by improvements in last-mile investments in road infrastructure.connectivity and significant Indian Railways is poised to enhance its freight traffic by 2030, offering a sustainable and cost-effective transportation option. Additionally, sea freight plays a crucial role in international trade, with Indian ports expected toaccommodatesignificantcapacity growth by 2023.
The cold chain logistics sector in India is rapidly evolving to overcome challenges related to food and pharmaceutical product losses. Investments in infrastructure and technology adoption are driving growth in this critical segment. Factors such as Indias immense agricultural potential, rising demand for the pharma cold chain, and government support are contributing to the sectors expansion. Furthermore, increasing investment opportunities and emphasis on professional expertise are fuelling growth in this segment.
Government initiatives and policieshaveplayed significantrole in shaping the logistics landscape in India. Initiatives such as the Goods and Services Tax (GST) and the E-Way Bill have streamlined logistics processes and enhanced efficiency. The granting of infrastructure status to logistics has attracted increased investment inflows, further boosting industry growth. Additionally, infrastructure development projects, including dedicated freight corridors and logistics parks, have bolstered the logistics ecosystem in India. Indias logistics startup ecosystem has witnessed robust growth, driven by the surge in e-commerce and the demand for innovative solutions. Startups leverage digital platforms and real-time data to enhance efficiency and lower costs. Government policies, such as the draft Sagarmala Innovation and Startup Policy, are fostering innovation and entrepreneurship in the logistics sector, further propelling industry growth.
Infrastructure projects such as the Eastern and Western Dedicated Freight Corridors and multimodal logistics parks are poised to enhance industrial development and efficiency. These projects aim to reduce transit times, enhance efficiency, and generate cost savings. Additionally, the creation of these logistics hubs will foster efficiencyand cost-effectiveness in the movement of goods across the country.7 India made significant strides in improving its Logistics Performance Index (LPI) rankings. This improvement can be attributed to factors such as technology adoption, infrastructure development, and policy initiatives. Enhanced logistics performance enhances trade competitiveness, reduces trade expenses, and boosts supply chain efficiency, contributing to overall economic growth. 8 Predictive analytics, supply chain visibility, and the growth of direct-to-consumer modelspresentsignificantopportunities for the logistics industry in India. Initiatives such as the National Logistics Policy (NLP) and the PM Gati Shakti initiative were aimed at further enhancing logistics efficiency and connectivity. Additionally, the growth of cross-border e-commerce presents new challenges and opportunities for the industry.
Collaborative partnerships and digital ecosystems are essential for achieving operational excellence in Indias logistics industry. By leveraging collective expertise and resources, businesses can optimize logistics operations, enhance customer experiences, and drive innovation. The implementation of green logistics technology further enhances sustainability and competitiveness, aligning with global trends towards environmental responsibility. Indias logistics industry is poised for unprecedented growth and transformation, driven by technological innovation, policy support, and industry collaboration. As the country marches towards ambitious economic milestones, the logistics sector will continue to play a crucial role in enabling efficient and seamless movement of goods across the country. With ongoing investments in infrastructure, adoption of digital technologies, and supportive government policies, Indias logistics industry is well-positioned to achieve new heights of success in the years to come.
GOVERNMENT POLICY
To complement the PM Gati Shakti National Master Plan (NMP), the National Logistics Policy (NLP) was launched in 2022. While the PM Gati Shakti NMP addresses integrated development of network planning, the NLP addresses thefixed the soft infrastructure and logistics sector development aspect, inter alia, including process reforms, improvement in logistics services, digitization, human resource development, and skilling. The vision of NLP is to drive economic growth and business competitiveness of the country through an integrated, seamless, efficient, reliable, green, sustainable, and cost-effective logistics network by leveraging best-in-class technology, processes, and skilled workforce. This will reduce logistics costs and improve performance. The targets of the NLP are to: (i) Reduce the cost of logistics in India; (ii) improve the Logistics Performance Index ranking the endeavour is to be among the top 25 countries by
2030, and (iii) create a data-driven decision support mechanism for an efficient logistics ecosystem.
To achieve these targets, a Comprehensive Logistics Action Plan (CLAP) as part of the NLP was launched by the government covering eight action areas including (i) Integrated Digital Logistics Systems; (ii) Standardization of Physical Assets and Benchmarking of Service Quality Standards; (iii) Logistics Human Resource Development and Capacity Building; (iv) State engagement; (v) EXIM Logistics; (vi) Services Improvement Framework; (vii) Sectoral Plans for Efficient Logistics (SPEL); and (viii) Facilitation of Development of Logistics Parks. Since the launch of the NLP, noteworthy progress has been made with respect to the implementation of the Policy. By means of regional conferences, one-on-one interactions, and inter-Ministerial meetings, DPIIT has facilitated the implementation of NLP.
On completion of almost two years since the launch of the National Logistics Policy (NLP), the progress of its implementation was assessed by the government in the presence of different Ministries to improve logistics efficiencyin the country. These assessments were made for eleven infrastructure and user Ministries including Road Transport & Highways, Port Shipping and Waterways, Coal, Food & Public Distribution, Civil Aviation, Steel, Commerce, Fertilizer, Revenue, Skill Development and Entrepreneurship, Power, and the National Industrial Corridor Development Corporation Limited. Furthermore, in an endeavour to further improve India’s ranking in the LPI, the Government has undertaken several measures to appraise the World Bank team about various initiatives and reforms of the Government of India and draw their attention to the need for a greater emphasis on objective-based methodology for LPI scoring. A dedicated Unit is being set up within the Logistics Division to develop and implement an action plan for improving India’s LPI ranking.
In addition, concerned line Ministries are setting up a dedicated cell for a focused project-based approach to improving India’s performance across the six LPI parameters. In line with the approved institutional mechanism for the NLP, an Inter-Ministerial Service Improvement Group (SIG) has been constituted. The SIG has been constituted to facilitate the speedy resolution of logistics services and processes related issues of the industry in a coordinated manner. Resolution of issues through SIG shall promote interoperability; eliminate fragmentation in documentation, formats, processes, liability regimes, and reduce gaps in regulatory architecture. The E-LoGs portal (digital system for registering logistics-related issues by logistics sector associations): As of now, 29 logistics sector associations are registered on the E-LoGs portal, with a total of 71 issues, of which 34 issues have been resolved. Regular roundtables with industry players and SIG meetings are held.
Progress on Implementation of NLP & CLAP
Since the launch of the NLP in 2022, progress has been made in implementing the CLAP. The Unified Logistics Interface Platform (ULIP) has played a pivotal role in digital integration within the logistics sector since the inception of the National Logistics Policy (NLP). ULIP harmonizes 34 logistics-related digital systems and portals across Ministries and Departments, incorporating GST data for enhanced functionality. With over 614 industry players registered and 106 private companies committing to leveraging ULIPs potential, and collaboration is vibrant. Currently, 57 applications have been successfully deployed, streamlining logistics operations effectively.
To promote trade facilitation, infrastructure gaps are being addressed under the National Committee on Trade Facilitation. The formation of an EXIM Logistics Group and a comprehensive port connectivity plan aim to enhance efficiency. Projects sanctioned by the Ministry of Road Transport and Highways and the Railways will improve last-mile connectivity to ports. Port process studies and the Logistics Data Bank (LDB) application promise greater predictability and transparency in cargo tracking. Human Resource Development is crucial for growth, with the Government taking proactive steps to promote professionals within the sector. Efforts continue with the development of tailored training modules. The Sectoral Plan for Efficient Logistics (SPEL) and initiatives like the Comprehensive Port Connectivity Plan (CPCP) emphasizes the commitment to fostering a skilled workforce and facilitating seamless logistics operations nationwide. State governments are actively engaged in enhancing logistics infrastructure with the formulation of State Logistics Policies (SLPs) across 22 states and union territories. The introduction of the Logistics Ease Across Different States (LEADS) index aims to monitor and improve logistics performance through annual surveys. The forthcoming LEADS 2023 report will provide insights for states to identify areas of enhancement. The Logistics Division of DPIIT is also working on estimating logistics costs to inform policy decisions effectively.
National Data Governance Framework Policy
The government is poised to ignite innovation and research among start-ups and academia through the introduction of a National Data Governance Policy. This policy will facilitate access to anonymized data. Additionally, the establishment of an Entity Digi Locker is slated for use by MSMEs, large businesses, and charitable trusts. This platform will serve as a secure online repository for storing and sharing documents with various authorities, regulators, banks, and other entities as needed.
In the realm of 5G Services, it was announced that one hundred labs will be established in engineering institutions to foster the development of applications utilizing 5G services. These labs will pave the way for a plethora of opportunities, business models, and employment prospects. Notably, the labs will encompass applications such as smart classrooms, precision farming, intelligent transport systems, and healthcare applications. National Deep Tech Startup Policy The government floated the draft National Deep Tech Startup policy in July proposing changes across nine themes including access to funding, strengthening the intellectual property regime, sustaining deep tech startups, and enabling shared infrastructure and resource sharing. Among the steps proposed is the setting up of a dedicated ‘deep tech capital guidance’ fund in which the government, private limited partners and foreign investors anchor certain commitments to a new fund or an existing fund in the form of a fund of fund (FoF) structure.
PERFORMANCE REVIEW
In the wake of unprecedented global challenges in the post-pandemic era, Blue Dart has showcased remarkable resilience and strategic acumen, positioning itself as a leader in Indias transport and logistics industry. Despite facing hurdles such as higher interest rates and increasing costs, the company not only surpassed pre-pandemic revenue levels but also solidified its position as the Provider of Choice for customers, the Employer of Choice for talent, and the Investment of Choice for stakeholders. Central to Blue Darts success is its commitment to customer-centricity. By prioritizing service excellence and understanding and exceeding customer expectations, the company has gained a substantial market share across various service offerings. This dedication to customer satisfaction has not only solidified Blue Dart’s position as a market leader but has also earned the trust and loyalty of its customers, driving its continued growth. Strategic investments have been instrumental in fuelling our growth trajectory. Blue Dart has allocated significant resources towards enhancing capacity, digitalization, and automation of processes. For instance, the procurement and induction of two B737-800 aircraft during the year 2022-23, have strengthened Blue Darts capacity requirements, enabling it to meet growing customer demands efficiently.
Furthermore, Blue Dart has expanded its market reach through strategic initiatives such as inauguration of company-owned retail stores, franchise collection centers, express selling agents, and regional service provider franchisees. This expansion into Tier I and II markets across India has not only improved its presence but has also provided strategic, scalable solutions to large customers, driving economies of scale and enhancing end-to-end service offerings.
A testament to Blue Darts excellence is its recognitionchangeswithin the industry and beyond. The company was honoured as Indias Top Value Creator 2023 in the transport and logistics category, highlighting its commitment to excellence and value creation. Additionally, it has received accolades such as Great Company to Work For and Blue Dart’s Managing Director, Balfour Manuel, was recognized as the Most Trusted Leader, further solidifying the companys reputation as a preferred employer and a trusted industry leader.
As part of its commitment to sustainability and innovation, Blue Dart has initiated technological initiatives focused on green logistics and Environmental, Social, and Governance (ESG) practices. These initiatives are aligned with the companys Strategy 2025 and reflect its dedication to creating positive environmental and social impact while maintaining strong governance standards.
Looking ahead, Blue Dart remains poised for sustained growth and success. With its resilient performance, strategic investments, customer-centric approach, and focus on sustainability, Blue Dart is well-positioned to capitalize on emerging opportunities and navigate future challenges effectively. Prioritizing operational excellence, innovation, and customer satisfaction, Blue Dart stands as a symbol of success in Indias transport and logistics sector, continually raising the bar for the industry as a whole. All Blue Dart team members have continued to play an important role in building business resilience in an uneasy world of global disruptions and uncertainty by demonstrating the organisations core values of Passion, Can Do, Right 1st Time, and As One at all times. With dedicated freighters in the air and network route connections on the ground, Blue Dart continues to support the nation by providing an unrivalled service across the vast and diverse Indian geography. During the year, Blue Dart carried over 3,587.62 Lakhs domestic shipments and over 6.47 Lakhs international shipments, both weighing more than 12,04,000 tonnes. Given the challenges and volatility of markets that continued to unfold, Blue Dart performed well throughout FY 2023-24, thus enabling us to be the investment of choice.
For the year ended March 31, 2024, Blue Dart on a standalone basis reported Income from operations of 5,26,783 Lakhs (previous year 5,17,222 Lakhs) and posted net profit after tax, on a standalone basis of 28,864 Lakhs (previous year - 36,644 Lakhs).
Notes:
1. Profit before tax for the year of 38,279 Lakhs as against a profit before tax of 49,874 Lakhs in the previous year.
2. Higher sales, efficient working capital management has enable purchase of two new aircraft during the year and with no external borrowings.
COMPANY OVERVIEW
Blue Dart has been South Asia’s premier express air-integrated transportation and distribution logistics company since its inception in 1983. Over the last 40 years, the organization has centered its business around providing individualized customer solutions to ensure exceptional service quality. The company offers secure and reliable delivery of consignments to over 56,400 locations in India. Blue Darts award-winning services are supported by six Boeing 757-200 freighter aircraft, two Boeing 737 aircraft, a flotilla of over 12,000 vehicles, 2,253 facilities, and 400+ e-vehicles. Blue Dart is the provider of choice for its stakeholders due to its customer-centric approach and aims to further strengthen this partnership. As part of the DHL Group’s DHL eCommerce Solutions division, Blue Dart accesses the largest and most comprehensive express and logistics network worldwide, covering over 220 countries and territories, and offers an entire spectrum of distribution services including air express, freight forwarding, supply chain solutions, customs clearance, etc.
Particulars |
March 31, 2024 |
March 31, 2023 |
Reason for variance |
Return on Equity ratio |
21% |
33% |
Reduction in Net profit after tax and increase in Average Shareholders equity resulted decrease in ratio |
Net Capital Turnover Ratio |
18.07 |
69.87 |
Increase in working capital resulted in decrease in |
Return on Capital Employed |
27% |
40% |
Net Capital Turnover Ratio Increase in Equity base and lower net profit has resulted in reduction of the ratio |
Return on Investment |
5% |
11% |
High year end investment and moderate during the year resulted in decrease in ratio |
e. change of 25% or more as Detailsofsignificant compared to the immediately previous financial year) in key financial ratios along with detailed explanations are as under:
Since 2005, Blue Dart has been a member of the DHL Group. Blue Dart joined the newly restructured DHL eCommerce Solutions division in 2019. This division is focused on providing high-quality solutions to customers, particularly those in the rapidly growing eCommerce industry. Leveraging the group’s footprint, Blue Dart intends to continue being a customer favourite and living up to the group’s motto of ‘Excellence: Simply Delivered.’ The company’s USPs are exceptional service quality, individualized delivery solutions, a reach that extends into the Indian heartland, and unmatched speed that ensures the shipments reach on time, every time.
As the trailblazer in creating benchmarks for express logistics, Blue Dart’s goal is to create a platform that will provide the best national network, with a strong emphasis on the expected delivery date and time, critical solutions that can ride on the most cost-effective network for last-mile deliveries. The platforms design goal is to generate profitable growth across all industries and customer segments. Its unique selling points are exceptional service quality, well-thought-out delivery solutions, network penetration that extends into the heartland of Bharat, and unrivalled speed, which ensures that all shipments arrive on time, every time. Blue Dart’s key offerings are the air and ground express segments as well as air freight, speed trucking, and charters through its synergies with the DHL Group’s business units DHL Express, DHL Global Forwarding, DHL Supply Chain, and DHL eCommerce (India) Pvt. Ltd. (erstwhile known as DHL eCommerce (India) LLP). Blue Dart’s global network through DHL Express spans over 220 countries and territories, making it the only express logistics company to offer an unmatched delivery capability encompassing the entire spectrum of distribution services.
Blue Dart provides a wide range of innovative and simplified solutions across industry verticals, as well as a dedicated air and ground network, high-standard technology infrastructure, value pricing, customer satisfaction, excellent service quality, and exceptional operations delivery.
Since 1983, Blue Dart has maintained its technological leadership and continues to invest heavily in its technology infrastructure to provide customers with differentiated delivery capabilities, products, and solutions. Blue Dart’s key differentiators continue to be late pick-up/early delivery, a secured network, 24x7 visibility allowing for tracking across the complete delivery chain, APIs integrated with customer requirements and other technology, mobility solutions such as dynamic re-routing, visibility of courier movement, and providing access to monitor net-stops from the service center to enhance courier and route productivity. Blue Dart continues to innovate and create for its customers to ensure user-friendly and efficient technological solutions. This includes Contact-Less Delivery Service as well as ‘My Blue Dart’ mobile application.
As part of the DHL Group, everything it does serves one purpose: Connecting People and Improving Lives. This commitment guides the efforts and sense of responsibility, highlights value, focuses on its mission, and creates long-term value. Blue Dart focuses its corporate responsibility on three key pillars: GoTeach (Championing education), GoGreen (Protecting the environment), and GoHelp (Disaster management response), successfully impacting communities and the environment. A Limitless Growth mindset is crucial. It involves embracing challenges, learning and growing from setbacks, seeing feedback as a tool for improvement, understanding that effort is key, and celebrating others successes. DHLs group strategy is deeply entrenched in driving a growth agenda by homing in on the right priorities at opportune moments, translating strategy into daily action. Adopting the principles of the Limitless Growth Outlook, DHL promotes a comprehensive strategy for development. This diverse approach demonstrates DHLs dedication to continual growth and innovation in an ever-changing environment.
Blue Dart is aligned with the Group’s Mission 2050: Zero Emissions. The aim is to reduce logistics-related emissions to zero by improving carbon efficiency by 50% over 2007 levels, operating 70% of first and last-mile services with clean pick-up and delivery solutions, having 50% of sales incorporate Green Solutions, and certifying 80% of its employees as GoGreen Specialists. Together with partners, DHL Group aims to plant over one million trees globally each year, of which Blue Dart will plant over 10% in India annually.
Towards this, Blue Dart’s sustainability roadmap calls for clean operations for climate protection, being a great company to work for all, and building a highly trusted company. Blue Dart has set milestones along the way to focus its efforts and measure the progress. Blue Dart has launched many initiatives to ensure it is doing its bit to aid the world in its battle against climate change and global warming. The company aims to make all their owned or leased facilities operate at Net Zero Carbon by 2025, drive increased efficiency, use cleaner fuels within the aviation fleet, support customers with sustainable and optimized packaging solutions, as well as design greener products & services through their comprehensive solutions.
PRODUCTS
Blue Dart is Indias market leader in premium express logistics. The award-winning product and service offerings provided to customers contribute to the organisations trust and loyalty. Blue Dart is currently the only express carrier in the country that provide a full range of services ranging from shipping of a single document to a charter load of shipments. Blue Dart’s services are constantly monitored in order to maintain a net service level in the vicinity of
97%. The company offers services in the air express segment, the ground express segment as well as multi-modal express solutions in the day-definite and time-definite delivery schedules. Blue Dart is the only express logistics operator with its own fleetof scheduled Boeing 757-200 and 737 freighter services, offering a larger capacity than any other domestic airline in the country. The focus through its air express solution is to carry shipments as the primary business, rather than as a by-product of a passenger airline. A dedicated aviation system to support Blue Darts services is self-sustaining, with its own bonded warehouses, ground handling, and maintenance capability.
The key market-defining
Definite Solutions (Domestic Priority 1030, Domestic Priority 1200, Dart Apex 1200), Day Definite Solutions (Domestic Priority, Dart Apex, Dart Surfaceline) as well as the Temperature Controlled Logistics (TCL) solutions.
Domestic Priority:
These services are specially designed to offer time-critical businesses a competitive edge with the fastest delivery services.
• Domestic Priority 1030: A guaranteed door-to-door time-definite delivery of shipments by air the next possible business day by 10:30 hours, targeted at time-critical business-to-business needs.
• Domestic Priority 1200: A guaranteed door-to-door time-definite delivery of shipments by air the next possible business day by 12:00 hours, targeted at time-critical business-to-business needs.
• Critical Express: A door-to-door, day-definite express service delivering critical shipments such as passports, tenders, original papers/certificates, property documents, etc. across India, under 32 kgs per package, delivered securely and safely.
The fastest, most reliable, domestic door-to-door delivery service for documents and small shipments under 32 kgs per piece, across India. It offers unfailing reliability and speed with the value-added benefits. This service is available within India.
Dart Apex:
Dart Apex is a door-to-door day-definite delivery service for domestic shipments weighing 10kgs and above. It is the fastest, most efficient delivery solution for commercial shipments that are time-bound and are required to undergo regulatory clearances or require special handling. Dart Apex offers an economical Airport-to-Door and Door-to-Airport service from the major airports of Chennai, Bangalore, Mumbai, Delhi, Kolkata, Hyderabad and Ahmedabad to all the Dart Apex locations serviced and vice versa.
Dart Apex 1200: A guaranteed door-to-door time-definite delivery of commercial shipments by Air that require regulatory clearances and specialised handling on the next possible business day by 12:00hrs, targeted at time-critical business-to-business needs.
Dart Surfaceline:
Dart Surfaceline is an economical, door-to-door, ground distribution service to over 56,000+ locations in India for shipments weighing 10 kgs and above. It offers a cost-effective logistics option for less time-sensitive shipments.
Blue Dart also offers a host of value-added services:
- COD (Cash on Delivery) domestic express offerings include Time The invoice value of the shipment booked by a customer will be collected from the consignee in the form of cash at the time of the delivery. The cash collected from the consignee will be returned to the customer to complete the transaction.
- DOD (Demand Draft on Delivery)
The invoice value of the shipment booked by the customer will be collected from the consignee in the form of a demand draft at the time of the delivery. The demand draft collected from the consignee will be returned to the customer to complete the transaction.
- FOD (Freight on Delivery)
The freight of the shipment will be collected from the consignee at the time of delivery.
- FOV (Freight on Value) - Insurance Arrangement
Blue Dart Express (BDE) can facilitate arrangements to insure shipments through an insurance company. In the instance of shipment damage or loss while in BDE custody, BDE would assist the customer in the claims process and ensure the claim is settled in the minimum possible time after the shipper/ consignee handover required documents to the insurance company.
- Digital Prepaid Card
This service helps customers manage their booking with real-time visibility of payments and balance along with a view of the summary and ledger. This digital prepaid solution is a hassle-free option for the customer featuring an instant recharge mode along with an OTP for high security and can be recharged as per fluctuating business needs with no minimum balance requirement. The Blue Dart portal has a convenient and intuitive user interface that helps with quick on-boarding and offers same-day shipping options as well. Through this solution,
BDE expects to Go-Green with digital billing, reducing sales administration, and giving customers the time to focus on their core businesses.
Dart Plus:
Dart Plus is an economical speed trucking solution. It is ideal to move time-sensitive shipments with transit time superior to the traditional Dart Surfaceline service. Day-definite delivery service is backed by speed, security and handling.
Point to Point (P2P)
P2P is Blue Darts ground distribution service for bulk shipments from the point of origin to the point of destination.
Temperature Controlled Logistics:
Temperature Controlled Logistics solutions are backed by extensive and reliable express distribution, dry ice supplies including free top-up replenishments, real-time shipment status information, regulatory clearance, validation services and project management. The packaging is constructed from recyclable, environmentally friendly and cost-effective material.
The innovative Temperature Controlled Solution ensures safe and compliant transport in frozen, chilled and ambient conditions. Using appropriate cooling mediums, the packaging performance delivers temperatures in the range - 20?C, 2 - 8?C and 15 - 25?C for varying distribution times.
Packaging Solutions:
- Express Pallet (Air and Ground)
The Blue Dart Express Pallet is a convenient, flexible yet economical way to send oversized goods domestically. It is a special wood-free palletized packaging, which can be built to accommodate shipments for freight as heavy as 50kg, 75kg or even over 100kg.
- Smart Box (Air and Ground)
Smart Box - Air Express and Smart Box - Ground Express are convenient, economic, packaging units priced to include a door-to-door delivery service within India. The units come in 2 sizes, 10kgs and 25 kgs, and are designed to accommodate a variety of products.
- Smart Box Lite
Smart Box Lite is designed to prevent electronics from getting damaged while shipping. This solution ensures the safety of your gadgets, from choosing the right transportation mode to right sizing the packaging, it is a stress-free solution for electronic shipments. This solution is a good match for all business and personal requirements and is intended to deliver laptops, tablets, and iPads, while providing a convenient, secure, and reliable service to customers.
University Express Baggage:
Blue Darts University Express Baggage is a discounted service for the student community through air and ground mode within India. Blue Dart offers a hassle-free, simplified delivery of student baggage from home to University or University to home.
Aviation Solutions:
- Airport to Airport:
The airport-to-airport service is an air freight service available on the flights operated by Blue Dart Aviation between the airports of Kolkata, Delhi, Mumbai, Bangalore, Chennai, Hyderabad and Ahmedabad. The advantages of an airport-to-airport service are no Cooling-Period, Late Night Cut-off & Early Morning Deliveries and a larger capacity than any other domestic airline.
- Interline:
This facility enables the distribution of imports within the country and has provided exports access to and from the gateways of international airlines. This provides international airlines with a cost-effective option to restrict their on-line stations within India and enhance their marketing possibilities at off-line locations by utilising the distribution capabilities of Blue Dart Aviation.
- Charters:
Charters are operated on an ad-hoc basis. Normally, charters have been used where timely delivery of sensitive equipment or large loads are required.
Technological Solutions:
Initiatives such as ‘On-The-Move’ (OTM) handheld devices, Retail Point of Sale (POS), Reverse Logistics (Open and Close), offering 16 Digital Wallets on Courier Handhelds, Call Bridge facility to create a personalised customer experience have all been appreciated as industry-leading solutions and benchmarks. Blue Dart has also pioneered the Contact Less Delivery (CLD) service during the pandemic to ensure a healthy and safe delivery process to provide a customer experience without the fear of contagion.
Global Solutions:
The Company’s global presence is enabled through the DHL Document Express (DOX), DHL Worldwide Package Express (WPX ) and a wide range of packaging solutions. DHL Import
Express is a unique single window importing service that takes care of all importing needs by offering door-to-door convenience services. X-Border International Services is another unique and strong service offering. Duties & Taxes Paid (DTP), Express Pallet, Shipper Interest Insurance (SII) and Express Easy-Student are some of the other offerings.
Blue Dart Med-Express Consortium
Blue Dart had anticipated a demand for future-ready tech solutions to ensure supply chain continuity. Last year, along with its partners, Blue Dart successfully launched the Blue Dart Med-Express Consortium under the ‘Medicine from the Sky’ initiative, supporting the Ministry of Civil Aviation, Government of Telangana, World Economic Forum and Niti Aayog in their effort to offer healthcare services to every individual across the nation. The initiative leveraged the use of drone flights to build robust healthcare infrastructure in the remotest areas of the nation. These Unmanned Aircraft Systems or drones can even handle Blue Dart’s specialised Temperature Controlled Shipments with a payload of up to 5kgs. They are equipped to pick up and deliver the shipment from the distribution centre to the towns that need the medical supplies and vice versa. The goal is to extend this service and provide for the majority of India’s population who live in hard to access areas. Blue Dart is keen on being their Provider of Choice as well and bringing the their doorstep. It will, therefore, be world happy to collaborate with other State Governments and industries across verticals. This will ensure that across the Blue Dart country customers can access an efficient contactless delivery experience.
Blue Dart Aviation
In May 2014, Blue Dart Aviation Ltd. (BDA) was incorporated as a 100% subsidiary of Blue Dart Express Limited. The first domestic freighter operations in India run by BDA were a fleet 737-200 freighters in 1996, since then the company has consistently updated its fleet to serve the increasing customer demand Currently, Blue Dart Aviation operates a total of six Boeing 757-200. Blue Dart Aviation has expanded its fleet with the inclusion of two Boeing 737 aircrafts. In the year under review, the aircrafts continued to operate across the scheduled network of seven airports (Kolkata, Delhi, Mumbai, Bangalore, Chennai, Ahmedabad, & Hyderabad) and serve domestic and international charter operations. The company would be adding Guwahati airport to its network.
CUSTOMER CENTRICITY
In todays dynamic business landscape, a paradigm shift towards client-centric strategies has become imperative for sustained success and long-term growth. With over a quarter of the population prioritizing ‘experience,’ customer satisfaction and engagement have emerged as pivotal factors driving competitiveness in the market. This transformation underlines a fundamental realization that clients, whether businesses or individuals, are the linchpin of the supply chain. Far from being a passing trend, the evolution towards client-centricity represents a strategic imperative to revolutionize the conventional logistics sector. This metamorphosis not only fosters agility and responsiveness but also elevates the standard of customer satisfaction, leaving an enduring impact on the business landscape.
At the core of fostering exceptional client relationships lie two fundamental pillars: technological integration and customization. The integration of technology into logistics operations has revolutionized client interactions by streamlining processes and offering real-time visibility. Advanced tracking systems, including GPS and RFID technology, empower clients to monitor their shipments at every stage, ensuring transparency and accountability. Automated inventory management systems optimize stock levels, minimizing delays and mitigating the risk of stockouts. Moreover, cloud-based platforms facilitate seamless communication between clients and logistics providers, enabling quick updates, status checks, and efficient problem resolution. Leveraging data analytics and artificial intelligence enables logistics companies to anticipate client needs, optimize routes, and enhance operational efficiency. This integration of technology not only enhances the reliability and speed of logistics services but also fosters a proactive and client-centric approach, thereby improving satisfaction levels and nurturing robust partnerships.
Customization and personalization further enhance the client-centric approach by tailoring services to meet unique requirements. Logistics providers can offer personalized solutions aligned with clients specific needs and preferences, thereby empowering them with greater control and visibility over their shipments. This tailored of two Boeing approach not only enhances efficiency but also fosters a sense of . partnership and trust.
The future of the supply chain is poised for a transformative shift towards client-centricity. Emerging technologies such as the Internet of Things (IoT) and artificial intelligence will play a central role in creating agile and responsive supply chains. This client-centric paradigm ensures real-time tracking, data-driven decision-making, and enhanced communication channels, fostering a seamless and transparent flow of information between businesses and their clients.9 At Blue Dart, customer-centricity is not just a philosophy but a way of doing business. As the Provider of Choice, Blue Dart is committed to ensuring a smooth and hassle-free experience for its customers. In the face of global supply chain disruptions, labour shortages, and demanding delivery schedules, the deployment of new logistics technology becomes central to mitigating these challenges. Collaborative logistics ecosystems are gaining momentum, enabling companies to improve efficiencies and reduce costs by sharing resources, assets, and information. Blue Dart is at the forefront of innovation, leveraging data analytics, artificial intelligence, and drone technology to transform the express logistics industry. The expanded network penetration across emerging towns and cities emphasizes Blue Dart’s commitment to meeting evolving customer demands. Furthermore, strategic partnerships, such as the one with India Post, and initiatives like Digital Parcel Lockers, demonstrate its dedication to enhancing the customer experience. Additionally, being recognized as a well-known mark further strengthens its competitive edge, ensuring enhanced protection and credibility in the market. Recognized with the prestigious ‘Well-Known Trademark’ status through the Indian Trademark Registry, thisaddsanothersignificantmilestone to its journey of excellence and solidifies its position as the Trade Facilitator of the nation. A "Well-Known Mark" brings forth a multitude of benefits, further amplifying Blue Dart’s competitive edge in the market. This acknowledgment ensures enhanced protection under the Trademarks Act, safeguarding the brand from unauthorized use or infringement, even from marks that are deceptively similar, even if used for different goods or services. This protection not only secures Blue Darts intellectual property rights but also maintains market clarity, preventing consumer confusion. It also significantly increases the brands value, establishing trust and credibility among customers and stakeholders even further.
In 2023, Blue Dart celebrated its 40th anniversary in November. This momentous occasion was marked by the inauguration of 40 new Franchisees and Company-Owned Retail Stores. -In addition, 40 new Express Sales Associates and Regional Service Participants were introduced across the country in both formats, covering the length and breadth of the nation. In FY 2023, individualized solutions were curated keeping in mind the needs of its customers. Therefore, during the festive season, Blue Dart launched the Rakhi Express, Diwali Express, Merry Express, and Ugadi Express offers, through which its customers celebrated the festivities, feeling close to their loved ones even if they were miles apart. As Blue Dart continues to serve diverse industries and build loyalty through programs like Blue Points Amazing Returns, its focus remains on delivering superior service while driving economic prosperity. Indias journey towards becoming the worlds third-largest economy hinges significantly on the resilience and sustainability of its logistics sector. Through concerted efforts to build both physical and digital infrastructure, incentivize multimodal logistics, and foster innovation and collaboration, Blue Dart can propel the logistics sector towards greater resilience and drive economic growth for the nation.
DIGITALISATION AS A KEY LEVER
In recent years, the supply chain industry has witnessed a profound revolution with the widespread adoption of digitalization technologies. This transformation has been spurred by evolving customer demands and persistent challenges in labour availability. These technologies have not only strengthened productivity but also enhanced the resilience and transparency of the supply chain ecosystem. From the conceptualization of vehicles and ships to the intricate web of infrastructure including roads, bridges, rail networks, and ports, digitalization has left no aspect of the transport supply chain untouched. It has revolutionized transport operations, enabling efficient capacity allocation, streamlined cargo management, and real-time shipment tracking. The integration of IoT, cloud computing, big data analytics, automation, and AI has ushered in a new era of automation and connectivity, marking significant advancements in the industry.
Digital platforms have emerged as a novel business model, facilitating innovative transport services and enhancing the tradability of services. Moreover, a data-driven approach has become the norm for both logistics businesses and regulators alike. This digital revolution has also fostered synergies between transport and logistics services and other sectors such as telecommunications, construction, energy, and environmental services, leading to mutually beneficial advancements. Digitalization has become the cornerstone of modern supply chain management, paving the way for unprecedented efficiency and collaboration across various industries.10 At Blue Dart, technology adoption plays a vital role in addressing global disruptions faced by the sector as whole. As an express logistics company, Blue Dart recognizesthesignificantcontribution of the logistics industry to the national economy. It has been investing in a robust infrastructure capable of supporting AI applications, ensuring scalability and efficiency. Blue Dart has also been focusing on upskilling its workforce. Moving forward, Blue Dart will focus on harnessing AI capabilities effectively, providing comprehensive training programs to equip them with the necessary skills. It will emphasize the importance of change management to facilitate a smooth transition, addressing any resistance and ensuring buy-in from all stakeholders. Blue Dart has plans to prioritize ethical considerations, implementing measures to ensure transparency, fairness, and accountability in AI-driven decision-making processes.
Challenges in this implementation include data management complexities, such as collection, standardization, and privacy concerns. Additionally, integrating AI into existing systems may require significant investment and could potentially disrupt current workflows. Addressing these challenges will require careful planning, collaboration across departments, and a commitment to ongoing optimization and refinement of AI algorithms and processes.
The Generative AI in Logistics market is driving a revolution in the supply chain and transportation industry, fundamentally transforming operations and enhancing efficiency. This growth is fuelled by various compelling factors, such as route optimization; AI algorithms streamline delivery routes, effectively reducing transportation costs and enhancing delivery times. AIs prowess in demand forecasting revolutionizes inventory management, minimizing stockouts, and ensuring smoother operations. Furthermore, AIs role in inventory optimization ensures effective management of stock levels, thereby reducing carrying costs and strengthening supply chain efficiency. Real-time tracking capabilities provided by AI enhance visibility and customer satisfaction by monitoring shipments promptly. AI also plays a crucial role in fostering sustainability by optimizing logistics for efficiencyand reducing emissions, thus contributing to a greener future. While acknowledging the transformative potential of Gen AI technologies in enhancing customer management, Blue Dart is still in the process of fully integrating AI into its systems. In FY 2023-24, Blue Dart led transformative digital initiatives to enhance customer experience and operational efficiency by partnering with What3words, a digital geocoding system that has revolutionized delivery accuracy. It ensures precise deliveries within a 3m x 3m square, enhancing satisfaction, and reducing errors. Blue Dart’s focus on technology-enabled mobility solutions for returns ensures error-free operations, thus improving service quality. Additionally, integrating AI into its CRM systems has allowed Smart Bots to streamline customer interactions. Blue Dart has also introduced Smart Assist a groundbreaking solution that redefined customer interactions and elevates user engagement. Aligned with its commitment to customer centricity, Smart Assist represents the latest innovation aimed at enhancing the delivery experience, starting with improving the success rate of second delivery attempts.
Smart Assist boasts several key features designed to empower customers and streamline the delivery process. Primarily, its proactive system addresses familiar challenges such as recipient unavailability by facilitating improved communication, ensuring seamless interactions throughout. Following an initial unsuccessful delivery, personalized WhatsApp notifications are sent to consignees, allowing them to provide alternative instructions, select preferred delivery dates, and specify landmarks. This valuable input assists its dedicated delivery team in their efforts and helps ensure successful deliveries.
Smart Assist includes a robust feedback mechanism, inviting consignees to provide insights on the first delivery discrepancies highlighted trigger an Escalation Delivery process, ensuring prompt issue resolution. Additionally, recognizing the critical role of an informed last-mile delivery team, all updates, whether consignee instructions or feedback, are seamlessly communicated, equipping them to succeed. Moreover, Smart Assist offers functional visibility to customers, providing them with relevant updates and ensuring effective communication throughout the process. Blue Dart also announced a groundbreaking partnership with India Post. With this collaboration, Blue Dart introduces automated Digital Parcel Lockers at selected post offices, offering customers an additional delivery method.
This innovation allows consignees to conveniently retrieve their shipments from digital parcel lockers, doing away with the need for personal receipts or signing for a package. These Digital Parcel Lockers keep their contents secure and are easily accessible. When the recipient needs to retrieve a package from the locker, they can simply enter the assigned code and open the locker. Additionally, deliveries can be collected at any time, and only authorized personnel can access the packages. Blue Dart has teamed up with Podrones, a last-mile technology and parcel locker company, to power this initiative.
Given the growing significance of cybersecurity, Blue Dart is implementing multifaceted measures to fortify the security and integrity of the IT systems and sensitive data. Blue Dart prioritizes safeguarding the process of generating insights by securing the entire lifecycle from data collection and model training to deployment and ongoing operations. This entails stringent protection of system data and models crucial for insight generation. Additionally, Blue Dart employs compartmentalization techniques, segmenting processes to mitigate risks. By separating and restricting workflow phases, it shields critical training data and model parameters, thus minimizing the impact of potential breaches. Blue Dart ensures a continuous verification process for both internal users and systems. This strengthens security through rigorous assessment of trustworthiness, authentication, and authorization. As regulations in the industry evolve to address AI integration, Blue Dart remains committed to balancing innovation with regulatory compliance, thereby ensuring transparent, fair, and secure AI-driven operations within the organization. With innovation at the forefront of its operations, Blue Dart led the way, leveraging future-ready technology to its advantage to deliver a superior customer experience. Leveraging the power and reach of its network penetration, Blue Dart was able to extend its reliable, resilient, and responsive last-mile delivery to the remotest parts of the country. Continued focus on enabling the digital capture of delivery and pickup data for shipments, covering 99.12% of deliveries and attempt.Any 47.90% of pickups during April 2023-March 2024.
OPPORTUNITIES AND FUTURE OUTLOOK Opportunities
In FY 2023-24, the global economy changed a lot, bringing both challenges and chances to adapt. Despite difficulties in trade, innovative responses strengthened international business. This led to a rethink of supply chains, urging countries and companies to invest in flexible systems. Industries responded by diversifying supply chains, moving production closer to home, and focusing more on sustainability. They also embraced advancedtechnologies transformation, driven like automation, AI, blockchain, IoT, and virtual reality to work better, save money, and meet changing consumer needs.
Complete digitalization is inevitable, which might make some logistics jobs outdated. But smart innovation and timely digital upgrades can keep these businesses relevant. AI and blockchain could leave behind companies slow to modernize. In 2024, the shipping industry is likely to invest heavily in cybersecurity to protect data and goods from theft and cyberattacks. The pandemic boosted e-commerce, and people now prefer online shopping. Technology keeps evolving, helping manage supply chains better, automate warehouses, and offer on-demand storage, benefiting businesses of all sizes.
India has become a major player globally, with a huge consumer market and a young population. Its crucial for India to capitalize on this and become a global leader. Indias government is focused on improving infrastructure, cutting logistics costs, and making Indian products competitive worldwide. Theyre investing in transport projects to improve connectivity for industries like ports, coal, steel, and fertilizer. This includes building new airports and involving private companies to boost connectivity and lower logistics costs. They are also investing in smaller cities and digitization.11 Indias logisticssectorissetforsignificantgrowth. With incomes rising and the economy growing, there is a strong base for expansion. With per capita income more than doubling to 1.97 lakh within approximately nine years, and the Indian economy ascending from the 10th to the 5th largest globally in the same timeframe, there exists a robust foundation for logistical expansion. Government initiatives like the Aspirational Blocks Programme and investment in infrastructure pave the way for logistics to reach every part of the country. The infusion of 75,000 crores, with a significant portion originating from private sources, into pivotal transport infrastructure projects further fortifies the logistical backbone, particularly in sectors like ports, coal, steel, fertilizer, and food grains. The government is investing heavily in transport projects and encouraging private investment, which will strengthen logistics, especially in crucial sectors like ports and food grains. The focus on AI and setting up centers of excellence will streamline operations and make logistics more efficient.With these favourable conditions and government support, Indias logistics industry has vast opportunities for growth, modernization, and global competitiveness.12
Future Outlook
In an era of heightened global uncertainties, mitigating risk has become paramount, driving the adoption of advanced technologies like big data analytics to anticipate disruptions and ensure operational resilience. The logistics landscape in India is poised for by a confluence of technological significant advancements and a growing emphasis on sustainability. As we delve into future outlook of the industry, it becomes apparent that several key trends will shape the trajectory of logistics operations across the country.
The utilization of big data analytics in the supply chain industry will be quite prevalent. With the increasing availability of data and sophisticated analytics tools,Indianlogisticsfirmscan harness insights to anticipate disruptions and optimize supply chains. In parallel, the adoption of Internet of Things (IoT) technology promises to enhance supply chain visibility in India. By leveraging sensor technology and cloud applications, logistics companies can achieve unprecedented connectivity across their operations, leading to greater transparency, efficiency, and responsiveness. This interconnectedness will undoubtedly pave the way for a smarter logistics landscape in the country.
Artificial intelligence (AI) is another game-changer that is poised to transform the Indian logistics industry. With AIs ability to analyse vast amounts of data, learn from past experiences, and predict future outcomes, logistics firms can optimize route planning, demand forecasting, and asset management. Moreover, advancements in AI-driven technologies such as computer vision are expected to become standard tools within the Indian logistics sector, further enhancing operational Sustainability will continue to take center stage in the future of Indias logistics industry. As environmental concerns become increasingly prominent, logistics companies will face mounting pressure to reduce their carbon footprint. This will drive the adoption of green solutions such as alternative fuels and electric vehicles, offering customers more opportunities to reduce transport emissions through sustainable options like sustainable aviation fuel and marine fuel.
Looking ahead, it is evident that technology and sustainability will become increasingly intertwined in the Indian logistics landscape. The synergy between AI-driven efficiencies and sustainable practices will enable companies to achieve both operational excellence and environmental stewardship, paving the way for a more sustainable and efficient logistics industry in India.
As logistics firms in India continue to evolve and adapt to these trends, staying ahead of the curve will be crucial for success in this dynamic and rapidly evolving industry. The year 2024 will provide valuable insights into how these trends will continue to evolve and shape the logistics industry. As an industry leader, we are embracing these changes, driving innovation, and fostering more efficient and sustainable logistics. 13 Keeping future outlook in mind, there is a growing sense of commitment among businesses and governments to reduce their carbon footprint and become more sustainable. This includes using alternative energy and electric vehicles to implement low-carbon solutions. Customers are also becoming more conscious of the environmental impact of their purchases and are seeking better alternatives, such as shopping with "green" brands and choosing sustainable delivery options. Being the trailblazer in the industry, Blue Dart already has carbon-neutral solutions for its customers. The company has redirected its focus towards implementing cutting-edge technologies aimed at enhancing last-mile delivery efficiency. This includes the introduction of innovative solutions like branded parcel lockers in collaboration with India Post at selected expenditure has been allocated to PostOffices.Significant expansion, automation, and digitalization efforts during the fiscal year 2023-24. Noteworthy innovations include the integration of AR and VR technologies for self-learning purposes, particularly for providing 5S training to improve user engagement and experience. Moreover, 400+ electric vehicles were deployed in 2023, marking a milestone in the companys commitment to sustainability. Additionally, 178 ring scanners were successfully deployed across 37 locations, further bolstering operational
RISKS AND CONCERNS Air Express
Air Express plays a crucial role in the global economy, facilitating the swift and effective movement of goods across borders. However, the industry stands at a critical juncture, confronting a multitude of challenges and uncertainties that require forward-thinking strategies and proactive initiatives. From geopolitical tensions to climate change, a complex web of factors threatens to disrupt operations and hinder growth prospects. Year-on-year demand growth for air cargo remains uncertain, influenced by the subdued performance of the previous year. While regions like Asia Pacific show promising growth prospects, concerns linger regarding overcapacity and declining yields. The unpredictable nature of demand adds another layer of complexity to strategic planning.
Rapid technological advancements promise increased efficiency but also introduce challenges such as labour market transformation and competition from alternative modes of transportation. Embracing innovation while mitigating its disruptive effects requires
13 Logistics Trends to Watch in 2024 DHL careful navigation and investment in cutting-edge solutions. Climate-related events and regulatory pressures to reduce operationalemissionschallengespose significant for the industry. Balancing sustainability goals with operational efficiency requires substantial investment in eco-friendly infrastructure and technologies.14 The grounding of aircraft, particularly due to issues like P&W engine problems, remains a pressing concern. Instances of Aircraft On-Ground (AOG) disrupt schedules, strain resources, and impact profitability. Addressing these issues demands collaborative efforts between airlines and original equipment suppliers to ensure fleet reliability and safety.
Capacity shortages, exacerbated by factors like temporary crew shortages and slower-than-expected fleet refurbishment, pose operational hurdles for airlines. Investing in infrastructure development and workforce planning is essential to mitigate these challenges and ensure seamless operations.15 Economic uncertainties add another layer of complexity to the industry landscape. Navigating these uncertainties requires agile adaptation and robust risk management strategies.
Despite these challenges, airways remain crucial for time-sensitive commodities such as pharmaceuticals, healthcare, and electronics. However, they are not recommended for non-time-sensitive freight due to their higher cost compared to other transportation modes. The Regional Air Connectivity Fund Trust (RACFT) has provided Viability Gap Funding (VGF) to selected airline operators for the Regional Connectivity Scheme (RCS)-UDAN, benefiting millions of passengers and connecting numerous airports and heliports. . 16 In the face of these multifaceted challenges, air express industry must adopt a proactive approach, fostering collaboration, investing in resilience-building measures, and embracing technological innovation and sustainable practices. Strategic planning and agile adaptation to changing market conditions will be imperative in navigating the evolving landscape of the air express industry effectively, ensuring continued growth and resilience in the years to come.17
Ground Express
Ground express logistics in India are poised for significant growth and transformation amidst a landscape of challenges and opportunities. With road transport serving as the backbone of the nations logistics infrastructure, the ground express industry plays a vital role in facilitating the movement of goods across regions, fostering economic development, and meeting the evolving needs of businesses and consumers.
14 Stattimes
15 IATA: Key Risks for Air Transport Industry in 2024
16
IBEF - The transformation of the transportation and logistics industry17
CAPA India- India Aviation Outlook FY2024Despite being a relatively small player in the global express market, Indias ground express sector is experiencing rapid expansion, fuelled by factors such as increasing urbanization, rising consumer demand, and the push for digitization.18 This growthtrajectoryis share of the market. not without its hurdles. One of the primary challenges facing the ground express industry is the fragmented nature of the market, characterized by numerous small to medium-sized players alongside a handful of larger competitors. This fragmentation poses obstacles in terms of standardization, efficiency, and scalability, hindering the sectors ability to realize its full potential. The industry grapples with a myriad of challenges ranging from infrastructure constraints to technological advancements. Complex supply chains, volatile customer demands, and the need for stringent safety and security measures further add to the operational complexities faced by logistics providers. The ground express sector stands to benefit from advancements in technology, particularly in areas such as automation, cloud computing, and data analytics. Embracing innovative solutions can help logistics companies enhance efficiency, optimize routes, and deliver superior customer experiences. Collaboration between government agencies, private entities, and industry stakeholders is essential to overcoming the challenges and unlocking the full potential of the ground express sector. By working together to address infrastructure bottlenecks, streamline regulatory processes, and leverage emerging technologies, India can position itself as a formidable player in the global logistics market.19 In conclusion, while the ground express industry in India faces its share of obstacles, it also presents immense opportunities for growth and innovation. With concerted efforts towards modernization, standardization, and collaboration, the sector can play a pivotal role in driving economic development, enhancing supply chain efficiency, and meeting the evolving needs of a dynamic marketplace. The progress on governments initiatives such as the National Logistics Policy and PM Gati Shakti Plan is visible in the last few years, signalling a commitment to improving the countrys logistics infrastructure and reducing the cost of operations. These initiatives aim to streamline processes, enhance connectivity, and foster a conducive environment for the sector.
COMPETITION
In the dynamic and swiftly evolving landscape of the Indian logistics industry, competition is not just a reality but a driving force reshaping the sector. With the burgeoning demand for time-sensitive logistics services driven by the imperative of speed to market, businesses are in a constant quest for logistics partners who can seamlessly navigate the complexities of modern supply chains. The express industry in India has witnessed a remarkable journey
18
IBEF - The transformation of the Transportation and Logistics Industry19
Economic Times - Indias road infrastructure since its modern inception in the 1980s. In India, the fragmented landscape with numerous small players has evolved into a scenario dominated by a handful of large, organized players commanding These established players have asignificant leveraged investments in information technology systems, robust processes, and expansive networks to cement their positions and cater to the burgeoning demands of a rapidly expanding economy. The industrys growth trajectory is not without challenges. One of the foremost drivers of competition lies in the relentless pursuit of market share amidst an environment characterized by the entry of new players and the emergence of innovative business models. The competitivelandscapeisfurtherintensifiedby the presence of semi-organized players and smaller entities vying for their niche in the market.The increasing competition in the e-commerce domain in India and internationally has contributed to the rising revenues of the logistics sector. The efficient handling of cargo by the logistics industry has enabled Indian exporters to gain a competitive edge in international markets. Growing awareness of logistics automation benefits, including cost reduction, time efficiency, and error prevention, is driving market growth. Companies are also investing in employee training to enhance productivity.20 The advent of technology-driven solutions has added a new dimension to competition within the logistics sector. From advanced tracking mechanisms to sophisticated analytics, companies are continuously innovating to offer superior services that not only meet but exceed customer expectations. This technological arms race is reshaping industry norms and setting new benchmarks for efficiency and reliability. In addition to traditional players, the competitive dynamics are further fuelled by the emergence of premium road transportation models backed by substantial investments. These disruptive entrants are challenging the status quo and redefining industry standards, particularly in smaller cities where local competition has been particularly aggressive. Additionally, regulatory uncertainties and economic fluctuations pose additional hurdles, necessitating adaptability and resilience on the part of industry players. The risk of restrictive legislative measures and the shift towards electronic documentation underscore the importance of agility and foresight in navigating the competitive landscape. Amidst these challenges and opportunities, the Indian logistics industry stands at a crossroads, poised for exponential growth yet grappling with the complexities of an increasingly competitive marketplace. Success in this environment hinges not only on operational excellence but also on the ability to innovate, collaborate, and anticipate evolving customer needs. As stakeholders continue to chart their course in this ever-evolving landscape, the journey towards logistical excellence promises to be both exhilarating and fraught with challenges, shaping the future of Indias economy in profound ways.
20 Logistics Service Market in India, 2024 Report
Despite the competition, Blue Dart continues to be the Provider of Choice, this is through investments in our capabilities and being alter to improvement areas. Our market differentiators in the domestic services are the 8 dedicated aircraft, extensive network spanning across 55,400+ locations nationwide, ensuring accessibility and reliability for all shipping needs. With a robust fleet of 12,000+ on-ground vehicles including 400+ E-vehicles, supported by 2,253 facilities nationwide, Blue Dart guarantees swift and secure deliveries.
At Blue Dart competition is always welcomed, as it creates a dynamic and value-driven healthy market.21 The winning proposition for the company is its Aircrafts, People, Technology & Digitisation that helps to set a benchmark for the industry as a whole.
ECONOMIC FACTORS
Indias economic resilience showcased in the first propelled it past the UK to secure the fifth spot globally, following its recovery from the COVID-19 pandemic shock. The countrys remarkable emergence as the fastest-growing major economy, coupled with its robust democracy and strong partnerships, positions it to potentially become one of the top three economic powers in the world within the next decade or so.
Investor confidence in India has strengthened amidst global unpredictability and volatility. Record-breaking capital inflows into India-focused funds in 2022 underline the growing appeal of the country as a destination for investments.
The global logistics and supply chain sector, integral to modern commerce, continues to exhibit resilience despite fluctuationsin the global economy. The correlation between logistics expansion and GDP growth remains strong, with projections from the International Monetary Fund (IMF) indicating a slight decrease in global GDP growth rates in 2024. Nevertheless, emerging economies like India sustain consistent growth, offering promising opportunities for logistics industry expansion and investment.
The pandemic catalysed introspection within the logistics sector, prompting transformative initiatives such as digitization, automation, and network optimization to fortify supply chains against future disruptions. These initiatives are expected to drive continued momentum towards resilience and adaptability within the industry. Geopolitical shifts and climate change present enduring challenges for the logistics landscape, necessitating proactive measures. As geopolitical tensions and environmental concerns shape logistical operations, the industry is at a decisive juncture, compelled to integrate sustainability into its strategic framework. Measures such as eco-friendly transportation, emission-reducingroute optimization, PwC. and sustainable packaging are imperative for sustainable growth.22
21 Research and Markets Report
22 IBEF - About Indian Economy Growth Rate & Statistics
In response to evolving economic dynamics, Blue Dart has implemented mechanisms like the General Price Increase (GPI) to adjust prices annually. These adjustments account for factors such as inflation, currency fluctuations, and regulatory costs, ensuring the maintenance of premium service quality for customers.
CYBER RISK
Digital interconnectivity increases efficacy but also makes forwarders, carriers, and hubs more vulnerable to be targeted by cybercriminals. The need for greater connectivity between technologies such as IT, OT and IoT, as well as different vendors, has propelled the industry to new heights of fleet efficiency, route optimisation, and profit margins. One of the risks for freight forwarders is cybercriminals impersonating a legitimate freight forwarding company by copying its website. The aim is to steal freight forwarding fees or any cargo quarterofFY23 that falls into their possession. Such methods can also be referred to as "brandjacking" and are often used to directly tarnish a brand’s reputation. In today’s day and age, it is impossible to defend against all cyberattacks, so companies usually have to strengthen their defences. They can begin leveraging the cybersecurity community for threat information and foster greater intelligence-sharing to build early warning systems. Companies are advised to review and revise incident and crisis management plans and playbooks. They can also run exercises to validate the organisation’s confidence in business recovery. To ensure the safety and security of its stakeholders, Blue Dart follows all the compliances to avoid cyber risk from internal and external threats. The company sends out cautionary notices time and again for both BTB and BTC customers through all the mediums of communication.
INTERNAL CONTROLS AND ITS ADEQUACY
The business environments increasing complexity and global nature provide many opportunities and potential risks. Internal controls are intended to prevent errors and irregularities, identify problems and ensure that corrective action is taken. They play a critical role in the health of a company.
Blue Dart remains committed to ensuring an effective internal control environment that assures the efficiency of operations and the security of its assets. Blue Dart has a sound internal control system to ensure that all assets are protected against loss from any unauthorised use. All transactions are recorded and reported correctly as per norms. The company’s internal control system is further supplemented by internal audits carried out by the internal audit team and supported by the co-sourced audit firm, Well-established and robust internal audit processes, both at the business and corporate levels, continuously monitor the adequacy and effectiveness of the internal control environment across the company and the status of compliance with operating systems, internal policies and regulatory requirements.
Blue Dart has always maintained adequate and effective internal financial controls based on internal control over financial reporting criteria established by the company. This considers the essential components of internal control stated in the Guidance Note on ‘Audit of Internal Financial Controls over Financial Reporting’ issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the company’s policies, safeguarding its assets, prevention & detection of frauds and errors, accuracy & comprehensiveness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.
The Audit Committee of the Board works closely with both the Internal Auditors and Statutory Auditors ensuring that all their queries are addressed. The company also conducts Risk Assessment Workshops annually to define and identify what the risks are and how company’smost significant those risks can be mitigated. The members of the Leadership team actively participate and deliberate in the risk workshops.
SUSTAINABILITY
Since its inception, Blue Dart has been steadfast in its commitment to fostering positive growth and development across social, environmental, and economic realms, epitomizing over three decades of conscientious corporate citizenship. Rooted in this ethos, the company has not only strived to generate value for its shareholders but also to serve as a responsible corporate citizen, safeguarding the well-being of its employees, the environment, and the communities it operates in.
Aligned with its parent company DHLs sustainability strategy, Blue Dart has ingrained sustainability into its core, underscoring its dedication to responsible corporate practices and collaboration with global communities. Recognizing the pivotal role logistics plays in the global economy, Blue Dart, as part of the DHL Group, has set ambitious targets to achieve Zero Emissions by 2050, aiming to set a benchmark for responsible business conduct within the industry. In its journey towards carbon neutrality, Blue Dart has made its carbon emissions by 39% since significant 2008, with a commitment to achieving net-zero emissions by 2050. Through innovative initiatives such as the GoGreen Carbon Neutral Service, Blue Dart empowers customers with environmentally responsible shipping options, further contributing to the reduction of carbon footprints.
The launch of the Blue Greens program underscores Blue Darts dedication to environmental stewardship, with the planting of over 7,77,000 trees to date, poised to offset a substantial amount of CO2 emissions annually. These efforts not only align with DHL Groups global tree planting initiative but also demonstrate Blue Darts commitment to driving tangible environmental impact. Beyond environmental initiatives, Blue Dart champions sustainability across three pillars: GoGreen, GoHelp, and GoTeach. Through GoTeach, the company bridges the gap between formal education and employment, empowering youth from underprivileged communities with essential skills and training, thereby enhancing their employability and fostering economic empowerment. Under GoHelp, Blue Dart extends its support to various community initiatives, ranging from childcare homes for cancer-affected children to addressing water scarcity in villages and providing essential healthcare services for the elderly. These efforts underscore Blue Darts holistic approach to corporate social responsibility, addressing diverse societal needs and enriching lives. Operating in accordance with ethical principles, environmental standards, and international guidelines, Blue Dart engages in ongoing dialogue with stakeholders to ensure alignment with societal and environmental expectations. By integrating sustainability into its corporate DNA and fostering collaborative partnerships, Blue Dart continues to pave the way for responsible business practices that drive positive impact across society, environment, and economy.
HUMAN RESOURCES
India has been one of the fastest growing and emerging economies in the world. Despite the pandemic hit, India continues to grow at a sustained pace amidst global challenges. Blue Dart also is geared to achieve business success by leveraging its strengths and continuous improvement for excellence towards being the Employer of Choice. In this scenario, company’s human resource function is also getting equipped to contribute to the business through various critical intervention in the areas like talent attraction, key talent engagement and development, employee health, well-being etc. Keeping the talent motivated, creating collaborative and winning culture, providing learning and developmental opportunities to the employees continues to remain a critical HR priority this year with increased rigour and focus. Blue Dart aligns itself with the DHL Group’s Strategy 2025 - ‘Delivering Excellence in a Digital World.’ In line with this strategy, it is creating a pool of certified E-commerce champions through continuous training intervention of Certified eCommerce Specialist training guided by DHL. Blue Dart is deploying a lot of other standardized interventions guided by the global standards of DHL. Being an Equal Opportunity Employer; Diversity & Inclusion remains at a focal point in terms of talent acquisition to increase female work force across the organization. The efforts are continued not just to hire diverse talent but also to be the safe and nurturing place for the it.
EMPLOYEE MORALE, MOTIVATION & ENGAGEMENT
To ensure that employees are being heard, Blue Dart continues to leverage DHL Group’s Employee Opinion ("EOS") which was executed virtually. Employee Engagement Index was reported at 97%. The overall participation on the EOS was 91%. Employee Engagement, provider of choice, Future & Strategy and investment of choice are the highest scoring KPI in EOS. Employee engagement activities like festival celebrations, health-related talks, and virtual activities among others helped in increasing employee bonding and engagement. Apart from these, Blue Dart locally conducted DHL’s global employee engagement initiatives with full enthusiasm. These were:
Common Values week- As One, Can do, Right 1st time,
Appreciation week
Cyclothon and Cricket tournament The key talent retention in 2023-24 was 94.8%.
PERFORMANCE MANAGEMENT
At Blue Dart, the performance management system stands as a cornerstone, seamlessly integrated with the global HR infrastructure known as Cross-Divisional, Central Human Resources Information System (CHRIS). Far beyond mere evaluation, this system serves as a dynamic tool for identifying developmental needs and nurturing career growth trajectories.
Thisyear,asignificant has been introduced to the performance management process, incorporating the Six DHL Leadership attributes. Embracing the ethos of Head, Heart, and Guts leadership elements, these attributes encompass a spectrum of qualities such as results orientation, strength leverage, purpose provision, trust cultivation, priority clarity, and resilience in the face of challenges, uncertainty, and change. Applied to managerial roles and beyond, this framework embodies Blue Darts commitment to fostering leadership excellence at all levels.
Guided by the People-First philosophy, Blue Dart cultivates a culture of meritocracy and development-oriented people management. Individual and collective contributions are objectively evaluated, recognized, and nurtured, ensuring a conducive environment for professional growth and organizational success.
The transition from Employee Development Review (EDR) to Leadership Evaluation Achievement, Development, and
Succession (LEADS) marks a significant step forward in talent management. Aligned with the DHL Groups approach, LEADS facilitates a comprehensive review of performance, potential, and developmental needs, equipping employees with the insights needed to navigate their career trajectories effectively. By standardizing this process, Blue Dart empowers its workforce with greater visibility into their career progression, while also fortifying business continuity through strategic succession planning. As LEADS-related conversations emerge as a cornerstone managerial activity, Blue Dart reaffirms its commitment to fostering a culture of continuous learning, growth, and resilience, ensuring that its workforce remains poised to navigate the evolving landscape of opportunities and challenges with confidence and competence.
EMPLOYEE DEVELOPMENT, SAFETY & SUPPORT
Motivated, engaged and winning teams deliver superior results. Various programmes are designed to cater the critical developmental needs and they were deployed for various target groups in the year under review. Blue Dart has introduced the ‘Certified Programmes’ comprising the content on Common values of Passion, Can Do, Right 1st Time and As One and a clear focus on quality which are the foundational tools necessary for all Blue Darters to deliver customer- centricity par excellence. In 2023-24, the Company, on average invested in 20026 man-days to provide relevant training and development programs to various teams to help propel both, organisational as well as individual learning and growth.
• Certified eCommerce Specialist (CeS): CeS is a flagship program guided by DHL which aims at developing the in depth understanding of DHL and Blue Dart’s E-commerce business coupled with certain critical managerial skills, Values and Attributes to drive business. It encompasses individual contributors, managers, and senior managers in its scope. 3078 employees were covered under this program. To develop key leadership attributes across managers, team leaders; Certified E commerce Manager was conducted for 54 managers including the senior leadership team at BDE.
• English Vinglish: This is a business communication course for Supervisors. 2230 supervisors have been covered and passed the necessary assessments as a part of completion of training.
• Employee safety: Employee safety is a focal point. Following programmes have been rolled out:
OSHA: 5695 BDE employees and 8137 outsourced employees are covered.
covered under the programme.
DG: Blue Dart provides training programmes on Dangerous Goods (DG), 74 employees are certified to be trainers this year.
• DHL mandatory trainings: As an ESG compliant organization aligning with the DHL standards, the Senior Management Team completed the online system-based training on My Talent World. Topics included DHL Data Privacy Policy, Certified data protection, Anti-Corruption - Core Compliance Curriculum, Code of Conduct - Core Compliance Curriculum, Insider Trading Law / Insiderrecht, Competition Compliance - Core Compliance Curriculum for effective & impactful learnings. 100% of eligible employees have completed the training. qualification skills to
• Employee Assistance Program (EAP): The programme aims at providing support and one to one counselling services through competent mental health professionals to our employees. Throughout the last year, webinars/ talks were arranged on various mental well-being related topics to break stigma, barriers around mental health and build awareness, more openness among the employees on overall health. One- to-one help is also available to employees in case of employees facing issues related to mental health, loss, grief or due to any other reasons. More than 30 employees underwent counselling sessions.
• Compliance training: Compliance strengthens a business license to operate and is the foundation of an entrepreneurial business practice that encourages compliance-driven behaviour. 6029 team members have undergone the Compliance training in 2023-24.
EMPLOYEE REWARD & RECOGNITION
In order to motivate employees and recognize their outstanding work 780 were awarded the on-the-spot Bravo award by individual managers for excellent work for the period FY 2023-24. 15 were recognized as Super Darters for going beyond their call of duties and delivering exceptional results. In 2023, there were 50 Employee of the Year awardees along with 30 nominees from across the country were felicitated by the Managing Director, 458 Blue Darters joined the True Blue Club on completion of 5 years of service.
ORGANIZATION-WIDE RECOGNITION
Blue Dart is a winner of Employee Safety Award 2022 and Best Workplaces for Women by The Times Group thrice in a row (2021, 2022 and 2023). Blue Dart has consistently featured among Top 100 Great Places to Work For in India. Blue Dart is also a Top Employer, 2024.
Overall, Blue Dart is leveraging its ‘People First’ philosophy which has helped it secure 53rd rank in the Great Place to Work in the last year and a certified Great Place to Work for 13th year in row.
OTHER PROGRAMMES
Upstairs
A GoTeach initiative by Blue Dart that promotes equal education opportunities and offers a scholarship program for employees’ children, who receive financial assistance for their education and mentoring support. 7 children were given scholarships this year from BDE.
Subsidized Tuition Education Plan (STEP)
This developmental policy enables team members to acquire higher career prospects/ personal development/ improve effectiveness on the current assignment. This is a developmental initiative by Blue Dart.
Blue Dart’s Reimbursement of Accident Claims & Expenses (BRACE)
This is a wellness initiative that aims at providing timely relief including reimbursement of medical expenses.
Death Benevolent Fund (DBF)
This is an employee welfare initiative at Blue Dart where the immediate family of a deceased Blue Dart team member receives monetary help from colleagues, as payroll giving. Our front-line employees’ families receive close to 10 years’ compensation in the event of any unfortunate demise of a colleague, even managerial employees are covered under this scheme. This is done with major contributions coming through benevolence from all Blue Dart team members.
Diversity & Inclusion
As a progressive organization, we believe in Diversity and Inclusion to be equal opportunity employer to attract and retain talent. Our aim is to be safe place for diverse talents which is aligned to the Blue Dart and DHL vision. Blue Dart has 16% Women in Management. Our women hiring rate is 10.2% this year HR has also taken a specific goal to increase diversity year hiring on . Some of the major interventions that Blue Dart has undertaken for enhancing diversity within Blue Dart are as follows:
• Safety as our building block: Blue Dart conducts the Prevention of Sexual Harassment ("POSH"), OHS and road safety training for drivers them on how to maintain safety at personal and work level. It had also surveyed female colleagues about safety at Blue Dart and received positive feedback for this initiative. Blue Dart won Employee Safety Award 2022.
• Celebrating gender diversity: Blue Dart has also published interviews of women colleagues on the Blue Dart career page to share a glimpse of their experience working with Blue Dart and the value of D&I in the organization.
CAUTIONARY STATEMENT
The statements included in this Report may contain forward-looking statements within the meaning of applicable Securities Law and Regulations. Many factors could cause the companys actual results, performances, or achievements to differ materially from any future results, performances, or achievements. Domestic and international economic conditions, changes in government regulations, tax regimes, and other statutesareallsignificantfactors that could affect the Companys operations.
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Securities Support WhatsApp Number
+91 9892691696
Download The App Now
Follow us on
2024, IIFL Securities Ltd. All Rights Reserved
Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.
Invest wise with Expert advice
