'This will revolutionise India's logistics'

New Delhi: Air Deccan began flying, just one per cent of Indians flew. It was 5 per cent by the time Captain G R Gopinath sold out to liquor baron Vijay Mallya. Which is why people take him seriously when, after a year in hibernation, Gopinath says his new venture, Deccan 360, will revolutionise the logistics business — by next year, he claims he will be able to deliver cargo in a day across 75 cities, completely changing the way in which Indian firms will stock inventory. Excerpts from a conversation with Surajeet Das Gupta:
Isn’t this the wrong time to get into the cargo business given how aviation markets are taking a tumble?
I am starting with three Airbus and two ATRs — this will provide me a capacity which is equivalent to the total cargo capacity available from India, capacity that was built in the last 60 years. There are seven dedicated cargo aircraft which have just 120 tonnes of capacity for the entire country — run by companies like Blue Dart and DHL — and this is given to corporate India only when there is some surplus capacity left. I will be the first Indian international cargo company. We have 7 cargo aircraft while China has over 100 dedicated cargo aircraft; the domestic express cargo business in India is only $500 million as compared to $5 billion in China and $35 billion in Europe. So the potential is huge.
But you need to build the market. When I started Deccan just after September 11, when only one per cent of Indians travelled by air, it looked suicidal. But today 4.5 per cent to 5 per cent of Indians fly. By next year, I will be in 75 cities across the country with Nagpur as my hub and I will provide end-to-end logistics support to my customers By that time, I should have nine aircraft — five Airbus and four ATRs — a fleet of over 400-500 trucks connecting the hinterland of our country and warehouses in various locations.
What is your USP? Isn’t delivering goods in smaller cities a harrowing experience?
I will offer delivery deadlines for goods which will be based on service agreements. Today, if I want to sent cargo from Manchester to a small town in south India, it can take around 20 days — I will do it in one day. The flight will come to Nagpur from the UK, from were I can send it to any place in the south either by truck or by aircraft the next day. I should be able to deliver cargo from Bagdogra to Tuticorn in one day via the Nagpur hub. The existing cargo services which are connecting India to the world are not looking at connecting to the smaller cities. Blue Dart operates from only seven cities and it gives the cargo to someone else to deliver if it is not in these cities.
15/05/09 Surajeet Das Gupta/Business Standard

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Categories: Cargo May 2009, Deccan 360 May 2009, Deccan Aviation May 2009, New May 2009