Q1) How do we quickly reach across India to shift massive volumes from existing

factories without incurring huge capital expense?

Answer:
To keep the cost down and can shift large volumes of consumer durable goods, we can use Hub
and Spoke Model. This way, we can have 6 central hubs (Mumbai, Delhi, Kolkata, Bhopal,
Bangalore, Guwahati) from where the delivery of the goods will be done to their respected sub
hubs and in this way Fast Express can cover 2500 centres of consumption and increase their
network to at least 250 points of presence.

The Indian government has undertaken to develop multi–modal logistics parks (MMLPs) and
improve the logistics efficiency in the country. A MMLP is a multi-modal freight handling facility
with a minimum area of 100 acres comprising mechanized warehouses, specialized storage
solutions like cold storage, facilities for mechanized material handling and inter-modal transfers
like container terminals, bulk or break-bulk cargo terminals.

A Logistics Parks Policy was launched by the government under the Ministry of Road Transport
and Highways in 2015. The policy proposes to develop 35 multi–modal logistics parks across the
country at an estimated investment of INR 2 lakh crores. Above locations have been identified for
these MMLPs with six of them having higher priority.

Benefits: 1 Reduction in freight transfer and freight transportation costs

2 Reduction in inventory holding costs
3 Reduction in freight transport lead time

Hubs:
Recognising optimum locations for warehousing and other fixed facilities within the supply chain are
major decisions for any business. The warehouse location is the primary factor to determine and
minimise transportation costs, and where new supply routes are being introduced or an existing
supply chain is being reengineered.
Major logistic Hubs:

Logistics Nearest Cities Major Freight Connectivity

Hub Industries
Ahmedabad Rajkot, Vadodara, Cement, Road: NH 8, NH1
Surat, Gandhinagar Petroleum, Rail: WDFC (upcoming)
Automobile Airport: Sardar Vallabhbhai International Airport
Bangalore Mysore, Kochi, Aerospace Road: NH 4, NH 7, NH 48
Mangalore, Madurai Aviation, Airport: Kampegowda International Airport
Automobile
Ancillary, Metals
MMR Mumbai, Thane, Navi Petroleum, Textile, Road: Old Agra Road, NH3, Mumbai – Pune Expressway
Mumbai, Pune, Chemicals, Rail: CST, WDFC (upcoming)
Ahemadnagar, Nashik Pharma, Airport: T2, Navi Mumbai (Upcoming)
Engineering Port: JNPT, Mumbai Port
Indore Ujjain, Gwalior, Kota, Food Processing, Road: NH 3, NH 59, NH 59 A
Vadodara Automobile Rail: Indore Junction
Ancillary, Airport: Devi Ahilyabai Holkar Airport
Pharmaceuticals
Kolkata Ranchi, Bhilai, Metallurgy, FMCG, Road: NH 2, NH 6, NH 34
Bhubaneshwar Petro – Chemicals, Rail : Dakuni (EDFC)
Pharma Airport: Netaji Subhash Chandra Bose Airport
Port: Kolkata Port
Chennai Puducherry, Mysorem Automobile, Road: NH 16, Bangalore Chennai Expressway
Kochi Hardware, Rail : ICTRIPL Terminal
Electronics, Airport: Chennai International Airport
Engineering Port: Chennai Port
NCR Deli, Noida, Gurgaon, Food Processing, Road: NH8, EMP Expressway
Jaipur, Amritsar Automobile, Rail : Western Dedicated Freight Corridor (upcoming)
Electronics, Airport: Indira Gandhi International
Pharma, Metal
Nagpur Aurangabad, Solapur, Steel, Pharma and Road: NH 69, NH 6, NH 3
Indore, Bhopal, Bhilai Chemical, Food Rail: Nagpur Junction
Processing Airport: Dr.Babasaheb International Airport
Port: CONCOR

Q2) What Modes of transport they can use and for what products they should use
what mode?

Answer:

Roadways is the most effective mode of transport in terms of Cost and Time i.e. Trucks and
the types of truck can vary from location to location.

Point of presence to Consumption Centre: 10 tyre or pickup

Hub to Point of presence : 16 or 10 tyre truck
Factory to Hub: 16 tyre truck can be used
Q3) What innovation they can suggest to reach out to 1000s of centres for delivery but
not invest in a large fleet.

Answer:
Hub and spoke model is one method which may help in the reach to the 1000s of centres
and second could be on contractual basis we could deliver our goods from one centre to
another which won’t lead to extra expense in buying of the trucks.

Venturing into ecommerce by listing on online platforms will also help to leverage
ecommerce SCM and reach out to untapped markets of India. Smart cities and tier2 cities as
well.

First Mile Logistics

Line - Haul

Last Mile Logistics

Reverse Logistics
Q4) What areas of India they can focus on where they can reach out in short term.

Answer:
The government is developing 100 smart cities across the country as per the case. Hence
we can focus on the states in India where the density of smart cities is more and hence we
will select the top 3 states with most number of smart cities in it. As per a report by the Indian
government, the maximum number of smart cities are present in Uttar Pradesh (13) followed
by Tamil Nadu (12) and Maharashtra (10). Tapping these cities with proper use of model
could increase our reach in short term.

Q5) What Synergies can be brought about by Grotech and Fast Express working
together to solve the logistics problem.

Answer:

1. An app or website like solution which is end to end and where a shipment can be
tracked along with the time it takes to reach from the point of origin to the consumer.
2. Consumption pattern, forecasting and accordingly stocking the items which are more
likely be consumed in which period.
3. FastExpress can leverage the dealer of Grotech and its dealer network can be put to
good use.
4. Given that Grotech’s consumer products are already popular in the urban areas, thus
provides FastExpress with a good business proposition of collaborating with a
popular consumer durable company and thus increase its reach.
5. Since both the Companies are targeting rural India, the business objectives of both
the entities is the same and hence the collaboration can be a fruitful one.