2. TEAM
Badrinath GM
• An IIMK Alumni & Serial Entrepreneur
• 6 years experience in business consulting in logistics domain
• Currently COO & Co-founder of Gleanchips Exim Pvt Ltd, an online
electronic component store
• An embedded design engineer pre MBA
Harinanda B
• A Serial Entrepreneur
• 16+ years of experience in Bigdata, Telecom, Storage, Networking &
Web Application development
• Currently IT Head in CashU payment Gateway
• Worked as acting director at Brocade
3. TRUCK AGGREGATOR
NEW GENERATION 4PL SERVICE
Stakeholders involved
• Transport required companies
• Transport Brokers
• Lorry Owners
• Lorry Associations
Transport
Requirement / Companies/
Brokers
www.tracktrucks.in
TT Call Center
Brokers
Lorry Associations
Lorry Owners
4. STAKEHOLDERS ACTIVITIES
Transport
Required
Companies
Can register with
us at free of cost
Can post truck
requirements
Can monitor truck
movements
Transport
Brokers
Can register with
us at free of cost
Can post both load
and truck
requirements
Can contact other
brokers i.e.
Increases their
reach
Lorry Owners
Can register with
us at initial cost
and monthly
maintenance costs
Can get business
based on their
position
Can track their
fleet for fleet
management
services
Lorry
Associations
Increases their
reach
Can post both load
requirements
5. INDIAN LOGISTICS NEED
Solution
A Real-time information of shipments and truck availabilities
Tracktrucks.in
Reason
Low penetration of IT
Lack of proper
communications
infrastructure
Lack of visibility and real-time
tracking ability.
Problems
No Guarantee
load during
return => higher
freight rate
LTL (Less than
Truckload)
shipments cost
more than FTL
(Full Truckload)
shipments
Fear of theft due
to lack of real
time monitoring
Unnecessary
paperwork and
delays, and
Lack of
transparency in
terms of cost
structures and
service delivery
6. Different committees “the Study Group on Transport Planning (1955), the Committee on
Transport Policy and Coordination (1966) and the Study Group on Viable Units (1967)” had a
specific commonality and considered a single truck firm as a non-viable firm, suggesting
horizontal and vertical integration of operators into registered associations and cooperative
societies for availing common facilities of servicing, repair and maintenance.
INDIAN LOGISTICS NEED
• Economies of scale are absent in the
Indian logistics industry.
• Organized players has unfair
competition with unorganized
players, who can get away
• Without following operating norms
stipulated
• Without paying taxes (differential
tax structure)
• Economies of Scale can be brought
by grouping of unorganised small
players into one in terms of
information and resource sharing in
a national level.
Tracktrucks
Load
Require
ment
Booking
Agents
Lorry
Owners
Associati
ons
7. WHY TRACKTRUCKS???
"Fareye - Vehicle Tracking System is the solution of all
your fleet management problems",
RoboticWares CEO, Kushal Nahata
" Vehicle tracking, Asset management and GPS fleet
tracking services ", AVLView
" GPS automated vehicle tracking solution providers ",
Novire Technologies
" Tracking Genie, GPS system in India helps to Track
& Manage assets & fleet of vehicles"
•Cab market is highly successful by projecting GPS as a business development
device rather than cost saving device
•With need for the same in transport industry tracktrucks projects GPS as a
business development device rather than cost saving device
GPS Positioning
8. MARKET SIZE
Rest
86%
Logistics
Industry
14%
GDP
Transportation
39%
order
processing
costs
6%
administrative
costs
4%
warehousing
27%
Inventory
carrying costs
24%
Logistics Industry
Railways
15%
Road Transport
73%
Water
Transport
3%
Air Transport
3%
Services
6%
Transportation
• Logistics costs around 14% of GDP, compared to 8% in the US
• Transportation dominates with around 39% share in logistics industry
• Road Transport constitutes for around 73% of transportation which is around 4.8% of GDP
• Road Transport is dominated by unorganised sector contributing more than 2/3rd of share
• Unorganised road transport market around $50 billion and are ready to give 10% for
business sourcing
Estimated
market size
$5 billion
9. SEGMENTATION & TARGETING
Maharashtra
14%
Tamil
Nadu
11%
Gujarat
10%
Andhra Pradesh
7%
Karnataka
6% Delhi
3%
Kerala
6%
Haryana
5%
Rajasthan
5%
West Bengal
4%
Uttar Pradesh
4%
Jharkhand
3%
Orissa
3%
Madhya
Pradesh
3%
Others
16%
Other
49%
Trucks Registered
• Total Multi-axled/ Arti-culated
Vehicles Trucks, LMV(goods)
registered in India as on 31st
march 2009 has been 6,040,924.
• Maharashtra, Tamil nadu, AP,
Gujarat, Karnataka and Delhi
constitutes for half of the vehicles
AHMEDABAD 30,160
BENGALURU 1,68,840
CHENNAI 1,59,464
COIMBATORE 15,535
DELHI, NCR 2,08,294
HYDERABAD 2,21,541
KOLKATA* 35,356
MADURAI 15,561
MUMBAI 69,114
NAGPUR 30,385
PUNE 1,36,912
SURAT 17,468
VADODARA 33,337
VISAKHAPATNAM 18,163
Registered trucks in targeted
metropolitan cities
10. MARKETING PLAN
Sales
• 5 state heads will be
recruited for 5 targeted
states
• 15 interns will be
recruited for 14 target
cities
Promotions
• Pamphlets will be
pasted on lorries
• Tie-ups with
brokers, Associations
• Tie-ups with Vehicle
Finance firms
Online
• Google Adwords
• Linkedin ads
Register
1 Lakh owners
with in 4 years
11. MARKETING PLAN
MARKETING COST
Cost Head
Number of
Employees
Fixed Package
(Rs. Per Month)
Variable package
(Rs. Per Month)
Target
State Heads 5 15000 10000
6X22
Vehicles a month
Total Interns 15 6000 5000
4X22
Vehicles a month
Admin marketing
expenditure
40000
Promotions 25000
Online Advertising 10000
Total Marketing Expense
Per Month
240000 125000
12. HUMAN RESOURCES REQUIREMENT
CEO
State Heads
(Marketing)
Interns
(3 per state)
Call Center
Head
10 employees
(increases as
per requirement)
Admin/ Account
manager
(outsource some
part)
Hierarchy
• Company will have a CEO looking after
the entire operations, finance of the
company
Marketing Dept
• Company will have a marketing division
where company will recruit an
employee per state and will be
controlling three interns under him.
• Sales head will be responsible for the
registration targets in their regions and
also handle interactions with industry
Call Center
• A call head will be appointed to handle
operations at call center
• Employees will be recruited as per
requirement
• Call center will take up other projects
depending on free time
• Company will recruit a admin/account
manager as company grows
13. FINANCIAL ASSUMPTIONS
Revenue Parameters
State Heads 6 Vehicles per day for 22 days a month
Interns 4 Vehicles per day for 22 days a month
App Download charges 1000 Rs per vehicle
Average Revenue Per Vehicle 400 Rs per month
Customer loss 5% Immediately after 1 month
Customer loss 1% Of total customers registered
4.81
16.34
35.13
68.03
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
0
20000
40000
60000
80000
100000
120000
2016 2017 2018 2019
Revenue Forecast
VehiclesRegistered Revenue Generated
(Rs in Crores)
14. COSTS INVOLVED
Monthly Burnout Cost
Cost Head Monthly Expenses (Rs)
Sales & Marketing
Employee costs
365000
Call Center Employee
costs
60000
IT Costs 150000
Top level executive
costs
100000
General and
Administrative
100000
Expense Margin 77500
Total Expense 852500
Initial Investment Cost
Cost Head Expense (Rs)
Office Setup 1000000
Recruitment Costs 400000
General and
Administrative
600000
Expense Margin 1000000
Total Expense 3000000
16. GSM+GPRS VS SMART PHONE
•No guarantee of mobile
with vehicle
•Battery issue
•High Initial costs –
Tough acceptance
•Can charge at app
download
•Low Initial Investment
•Easy acceptance
•Owner control
•Stick with vehicle
•Larger margins for us
GPS+GSM
System
(Advantages)
Smart Phone
with APP
(Advantages)
Smart Phone
with APP
(Disadvantages)
GPS+GSM
System
(Disadvantages)
18. DEMOGRAPHICS – OWNERSHIP PATTERN
<10 years
55%
11-20 years
30%
>20 years
15%
Experience in business
Ownership Pattern
• The majority of goods transporters are small operators owning one
or two trucks. In a few cases, these operators own between 5 to 10
trucks.
• The trucks are not registered in one name, presumably to avoid
income tax obligations and labour legislation.
• An interesting feature observed is that very few operators admit of
owning even up to six trucks. While the same person may expand
his fleet by acquiring additional trucks, he prefers buying these
additional vehicles and applying for loans in the name of another
person. This is mainly done to avoid the application of the Motor
Transport Workers Act.
• Large size operators handle about 12-15 per cent business in their own trucks and the balance is
handled through hiring trucks from small operators. Medium and large sized operators charter
trucks to the extent of 10 to 12 times their own fleets.
• Small operators are involved only in the physical movement of goods and depend on booking
agents and other fleet operators/transporters for obtaining business. Some of them are
attached to major transport companies, brokers and vehicle suppliers.
19. DEMOGRAPHICS – INTERMEDIARIES
Intermediaries Pattern
• The trucking industry has a number of intermediaries who play a useful role in the provision of
efficient transport services. These include
Booking agents (also called transport contractors)
Brokers.
Lorry owner associations
• Booking agents/transport contractors and brokers are at present an unregulated lot. These
players determine freight rates to a large extent and act as powerful agents of the trucking
industry.
• The majority of brokers have been in the business for more than eight years and are sole
proprietors, indicating that new entrants are few in number.
• As regards the level of education of brokers, the survey indicates that 64 per cent of brokers
are educated up to matriculation level and only 36 per cent are graduates. This low level of
education is responsible for lack of professionalism in the business.
20. GPS MARKET IN INDIA
1999-2003
• The stage of market development from vendor’s perspective
• Spent in understanding the technology
2003-2006
• The stage of market development from Consumer’s perspective
• Denial in the market and slow in reach
2007-2009
• A lot of competition, a very small expansion of the market
• Focus on product differentiators
2009-2013
• GPS became popular because of smart phones
• Became a commodity product
2013-
• New markets will be created and
• Leaders will be made of existing companies or born out of new ones
21. THANK YOU
FOR ANY INFORMATION SEND MAIL TO
badrinath.gm@tracktrucks.in
harinanda@tracktrucks.in
OR
CALL +91-8123455400
