September 9, 2019
The logistics industry, at a closer look, is the backbone of a nation’s economy. Whatever might be the nature of a business, both raw materials and finished products have to be moved from one place to another. With the rise in internet penetration, the ever-growing demand for integrated logistics services has led established players to expand their services portfolio.
Best Roadways self-owns a fleet of 1500+ vehicles and operates via 51+ branch offices in India
One such name, Best Group of Companies, a leading logistics player, announced expansion into air and rail cargo services. Through this step, the company intends to offer fast, secure and flexible logistics across first mile and last mile deliveries with 360 degree visibility. Currently, Best Roadways, a subsidiary of the Best Group, has the largest market share of freight movement on the Delhi-Mumbai freight lane.
In the logistics industry where there is hyper competition, the company has effectively created an Economic Moat, in the words of Warren Buffet.
Best Roadways was established in 1986 with a single truck by Mr. Jai Kumar Gupta. In 1991, Best Roadways started mass scale containerized fleet operations in the country. Today, the company offers nationwide logistics services through dedicated 51 branch offices, and self-owns over 1500 trucks, moving about 5000 tonnes of cargo to-and-fro, every day. The company also owns over 3 million sq. ft. of warehousing space at Navi Mumbai.
In the words of Mr. Suyashh Gupta, Director, Best Roadways, “Diversification is the key”. He added, “We have diversified our product portfolio, our customer portfolio and our geographical portfolio. We are aggressively participating in all the major contracts and tenders from all Geographies. We have become geography-agnostic. This is a big shift in strategy from earlier on where we were limited by our geography where our branches were.”
Best Roadways, via this expansion, plans to integrate air, rail and road freight into a single ecosystem enabling shipping services on the basis of schedule and cost requirements.
The company, enables air freight services from almost every major market across the globe with over 1500 consolidated flights per week; reportedly more than any operator whose primary forte has nothing to do with movement by air.
Best Roadways also offers custom brokerage and bonded warehousing, along with charter solutions for oversize, heavyweight cargo, dangerous goods, perishables and valuables.
The company’s rail services span nationwide with dedicated last-mile delivery solutions. According to Best Roadways, rail cargo is quite environment friendly, and economical. Reportedly, rail freight usage of carbon dioxide is up to 90% lower than air freight, while 6X less expensive than air. The company also offers temperature controlled cargo along with regular updates on security, temperature and transit status.
Commenting on future prospects, Mr. Gupta stated, “We plan to go public before Modi’s second term ends.” Mr. Gupta believes that leveraging technology as the building block and evolving into a technology logistics company will enable Best Roadways to position itself as the market leader.
Best Roadways has a diverse client portfolio across multiple industries, including players like IOCL, Ceat Tyres, BASF, Reliance, Tata, etc. With extensive use of technology and dedicated fleet of assets across road, rail and air, the company has set new standards for the competitors in the logistics industry. Best Roadways Limited is now truly an integrated logistics player with Multi Modal Operations across all major regions within India.