Logistics firm Gati-KWE doubling capacity to cater to festive demand

Express logistics firm Gati-KWE is doubling its capacity to cater to the enhanced demand during the festive season, which is expected to drive its volume growth by 50 per cent despite the COVID-19 pandemic, a top company executive has said. Besides, the company is also building and hiring capacity with added trucks, to leverage its varied offerings and cater to customers” diverse requirements.

Gati-KWE is a 70:30 joint venture between domestic express distribution and supply chain solutions provider Gati and Kintetsu World Express (KWE), which is a part of Japan”s Kintetsu Group Holdings. Allcargo Logistics is now the promoter and the single-largest shareholder of Gati with 47 per cent ownership, followed by KWE with about 3.5 per cent share in the company. According to the company, brands across different industry sectors along with e-commerce marketplaces and players are gearing up for the festive season.

They are aggressively promoting various offers to drive sales, which are expected to significantly drive logistics volumes and demand in the festive season. “We are further augmenting our express logistics capacity by two-folds for the upcoming festive season,” Bala Aghoramurthy, Deputy Managing Director, Gati-KWE Ltd told PTI.

The company”s domestic network covers 735 of India”s 739 districts and more than 19,800 PIN Codes. It operates a fleet of more than 5,000 vehicles and offers assured space across 32 airline sectors. He said the company is expecting 50 per cent growth in volumes during the October-December period despite COVID-19, adding as Gati-KWE goes about doubling its capabilities, it is also giving utmost attention to COVID-19 care and safety across its stakeholders.

Gati-KWE is actively building and hiring capacity with added trucks, to leverage its varied offerings and cater to customers” diverse requirements, and has revamped its express distribution, warehousing, and supply chain management services to cater to the upcoming festive season demand, said the company. “Our decision to expand resources and service bandwidth by hiring additional trucks is a consequence of our experience and understanding of the market underlined by our commitment to efficiently accommodate the increased and dynamic demands of our customers during this period,” Bala Aghoramurthy said.

The changes in buying patterns suggest that consumer sentiment in India is gradually improving, the company said, citing recent research findings, which stated that almost 30 per cent of Indian consumers surveyed, plan to spend more on clothes and accessories followed by other goods. Through Gati AIR, Express Plus Service, and Express Service, Gati-KWE Express offers services for parcels, freight, and special cargo movement. The company has rolled out multi-level warehousing solutions with inventory optimization, risk management, and contingency strategies, sales and operations planning, demand repository, and POS data adoption.