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TRACKTRUCKS.IN JAPAK ONLINE SERVICES PRIVATE LIMITED
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TRACKTRUCKS.INJAPAK ONLINE SERVICES PRIVATE LIMITED
TEAMBadrinath 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
TRUCK AGGREGATORNEW GENERATION 4PL SERVICE
Stakeholders involved
• Transport required companies
• Transport Brokers
• Lorry Owners
• Lorry Associations
Transport Requirement / Companies/
Brokerswww.tracktrucks.in
TT Call CenterBrokers
Lorry Associations
Lorry Owners
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
INDIAN LOGISTICS NEED
SolutionA Real-time information of shipments and truck availabilities
Tracktrucks.in
Reason
Low penetration of ITLack 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
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
Associations
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
MARKET SIZE
Rest86%
Logistics Industry
14%
GDP
Transportation39%
order processing
costs6%
administrative costs4%
warehousing27%
Inventory carrying costs
24%
Logistics Industry
Railways15%
Road Transport73%
Water Transport
3%
Air Transport3%
Services6%
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
SEGMENTATION & TARGETING
Maharashtra14%
Tamil Nadu11%
Gujarat10%
Andhra Pradesh7%
Karnataka6% Delhi
3%
Kerala6%
Haryana5%
Rajasthan5%
West Bengal4%
Uttar Pradesh4%
Jharkhand3%
Orissa3%
Madhya Pradesh
3%
Others16%
Other49%
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
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
MARKETING PLANMARKETING COST
Cost HeadNumber of
Employees
Fixed Package
(Rs. Per Month)
Variable package
(Rs. Per Month)Target
State Heads 5 15000 100006X22
Vehicles a month
Total Interns 15 6000 50004X22
Vehicles a month
Admin marketing
expenditure40000
Promotions 25000
Online Advertising 10000
Total Marketing Expense
Per Month240000 125000
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
FINANCIAL ASSUMPTIONSRevenue 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
4.8116.34
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
Vehicles Registered Revenue Generated (Rs in Crores)
COSTS INVOLVEDMonthly 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
APPENDIX
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)
DEMOGRAPHICSAPPENDIX - 2
DEMOGRAPHICS – OWNERSHIP PATTERN
<10 years55%
11-20 years30%
>20 years15%
Experience in business
Ownership Pattern
• The majority of goods transporters are small operators owning oneor two trucks. In a few cases, these operators own between 5 to 10trucks.
• The trucks are not registered in one name, presumably to avoidincome tax obligations and labour legislation.
• An interesting feature observed is that very few operators admit ofowning even up to six trucks. While the same person may expandhis fleet by acquiring additional trucks, he prefers buying theseadditional vehicles and applying for loans in the name of anotherperson. This is mainly done to avoid the application of the MotorTransport 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.
DEMOGRAPHICS – INTERMEDIARIESIntermediaries Pattern
• The trucking industry has a number of intermediaries who play a useful role in the provision ofefficient 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. Theseplayers determine freight rates to a large extent and act as powerful agents of the truckingindustry.
• The majority of brokers have been in the business for more than eight years and are soleproprietors, indicating that new entrants are few in number.
• As regards the level of education of brokers, the survey indicates that 64 per cent of brokersare educated up to matriculation level and only 36 per cent are graduates. This low level ofeducation is responsible for lack of professionalism in the business.
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
