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Sudha Menon

PUNE, Nov. 28

THE Pune-based third party logistics service provider Dynamic Logistics is geared up to foray into auto logistics toprovide CBU/SKD importers with a one-stop destination for all their logistics needs.

The service, expected to kick off a couple of months from now, will see the company catering to every need of the client right from the time the vehicles land at the port and will include services such as customs clearance, pre-delivery inspection, and even outfitting the vehicles with special fittings provided by the client before being despatched to the dealer network, Mr Praful Talera, Executive Director of Dynamic Logistics, told Business Line. The company's auto logistics facility is being constructed off the Nhava Sheva, he added.

Meanwhile, the company was widening its geographical presence and had finalised plans to set up a Container Freight Station (CFS) at Manali in Tamil Nadu, Mr Talera said. The Rs 10-crore project, to come up on 20 acres of land at Manali, was expected to be commissioned next year, he said, adding that the company had licences sanctioned for similar facilities at Bangalore and Nashik.

The company already operates a warehouse and distribution facility for the distribution of spare parts for Ford in Chennai. It is also geared up to handle Tata Engineering's in-bound logistics and has completed a pilot project to check out the efficacy of its plan, according to Mr Talera.

Dynamic Logistics was already handling the auto company's outbound logistics of around 50,000 parts worth Rs 300 crore, Mr Talera said.

Tata Engineering, incidentally, has approximately Rs 4,000 crore of in-bound supplies into its facilities every year and implementing Just-In-Time delivery of this material would save the company up to Rs 900 crore otherwise tied-up inventory annually, he said.

``Outsourcing logistics services is something every corporate will have to adopt sooner or later as the competition increases and the only thing that differentiates one product from the other will be the quality and reliability of services. Corporates who want to cut costs and concentrate on their core competencies will soon go in this direction which is why our business is growing fast,'' Mr Praful Talera said.

The company's turnover was expected to go up from Rs 19 crore in fiscal 2001-2002 to Rs 22 crore by the end of March 2003, he added.

Meanwhile, the company was also foraying into value-added services, according to Mr Talera who said it had bagged the outbound logistics contract worth Rs 40 crore from Eicher Motors for its Pithampur facility. "While the initial plans are to set up a part of the distribution centre for the company, the second phase will include handling its inbound logistics too," Mr Talera said. The company had also recently bagged the outbound logistics contract for the Pune-based B.C. Components, he said.

The company, which has commissioned its air cargo complex at Dighi, near Pune, has despatched 80,000 tonnes of cargo in the last two months, mainly consisting of engineering goods out of Pune and is now also targeting the agricultural produce sector.

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