TCI XPS was established in 1996 as one of the foremost divisions of Transport Corporation of India Limited (TCIL), India’s most admired logistics company. This division offers a single window time definite solution for customers’ express requirements including domestic courier and international courier services through road, rail and air with some value added services.
TCI Express also provides round the clock door to door E-commerce delivery service in India. Here the focus is very clearly on express cargo distribution with greater emphasis on the burgeoning e-commerce business.
TCI XPS has been hived off to become TCI EXPRESS LIMITED, an independent company listed with stock exchanges of India with effective from 1st April, 2016.
- The Indian Logistics industry size is estimated at USD 200 billion in 2016-17. As a premium segment, the express industry is a small but significant segment of the logistics industry.
- The industry is expected to grow at 17% per annum in the next three years.
- Express industry is also expected to receive a fillip from the higher level of consumption demand in the country.
- The consumption demand in India is expected to grow at 10% over the next 10 years fuelled by higher economic growth, and this will in turn push the demand for items like electronics, garments, etc, in turn creating additional demand for express industry.
- The growth in express industry, is closely linked to the level of economic activity in the country.
Logistics Spend of GDP:
- United States and the European Union, the share of logistics industry in GDP is estimated to be approximately 8% and 7%, respectively.
- Japan, logistics spends form approximately 11% of its GDP.
- China, the figure is as high as 18%.
- India, various sources have indicated the share of logistics in GDP to be 11%-13%. While the estimates on the size of the industry vary, it is widely accepted that the logistics industry forms a significant part of any economy and grows in tandem with the economy.
Revenue for FY18 is 885 crores vs 750 previous year. The PAT is at 58 crore vs 38 crores. The PAT margin has improved from 4.99% to 6.58%.
- TCI-XPS has been long term player in logistic field and is aware of the nuances of the industry
- GST Implementation
- Margins are very low as business is highly competitive with many players.
- Unorganized segment has a huge share
I am share holder of the TCI express and opinion may be biased. Members are requested to do a thorough analysis before investing.