Business Strategy of Blue Dart DHL
Business Strategy of Blue Dart DHL
Multi-dimensional Business
Strategy of Blue Dart
Table of Contents
Executive Summary
Growth
Looking Ahead
Executive Summary
Blue Dart has been pioneer since its inception till date. It introduced
many of the business operations practices in India that the nation
needed and was deprived of.
Apart from business, Blue Dart has also contributed to the society
through variety of channels. It has been pioneer in reaching out with
relief assistance to places hit by natural calamities in India and it has
responsibly shouldered the call by the national Government. It is also
actively engaged in youth empowerment.
Vision
To establish continuing excellence in delivery capabilities focused on
the individual customer.
Facts
Began operations in November 1983
Headquartered at Mumbai, India
Board of Directors
Sharad Upasani (Chairman)
Anil Khanna (Managing Director, Blue Dart Express)
Clyde Cooper (Director, Blue Dart Express)
Suresh Sheth (Director, Blue Dart Express)
Christopher Ong (Director, Vice President – Business Development,
Asia Pacific, Eastern Europe, Middle East & Africa, DHL)
Malcolm Monteiro (Director, Sr. Vice President & Area Director,
South Asia, DHL)
Shareholding Pattern
Shareholding percentage
Public, 18.9652
Promoter &
promoter group,
81.0348
6.4311
1.8323
5.2043
5.4975
81.0348
DHL Express (Singapore) Pte. LTD. Derive Trading Pvt. Ltd. along w ith PAC
SBI Mutual Fund under various schemes IDFC Premier Equity Fund
Others
Services
DOMESTIC
Domestic Priority 1030
A guaranteed door-to-door time definite delivery of shipments by air
the next possible business day by 10:30 hours, targeted at time-
critical business-to-business needs.
An Express time definite service with Money Back Guarantee*
(MBG) to the select pincodes in Chennai, Delhi, Ahmedabad,
Mumbai, Hyderabad, and Bangalore by 10:30 hrs on the next
possible business day.
Pickup service is available from Chennai, Delhi, Ahmedabad,
Mumbai, Hyderabad, Bangalore, Kolkata, Navi Mumbai, Gurgaon,
Noida, Ghaziabad, Vadodara, Anand, Indore and Dewas.
Domestic Priority 1030 is not available from all local origins, or to all
destinations.
Real-time tracking
Domestic Priority
It is the fastest, most reliable, door-to-door day-definite delivery
service within India and to Bangladesh, Nepal and Bhutan for
documents and small shipments under 32 kgs per package.
Domestic Priority provides a 'Next Day' delivery service to most
locations in India.
Delivery to over 14,965 locations in India
Free pick-up from customer’s location
Real-time Tracking through the internet
Regulatory Clearances for all States in India taken care of by Blue
Dart DHL team of specialists, to resolve customer’s regulatory
requirements.
Free Computerized Proof of Delivery: On demand, confirming the
date and time of delivery as well as the name of the person
receiving the consignment.
Dart Surfaceline
Dart Surfaceline is an economical, door-to-door, ground distribution
service to over 25,416 locations in India for shipments weighing 10
kgs and above.
Time-bound Delivery: A fleet of vehicles run to pre-determined
schedules to provide committed delivery.
DOD (Demand Draft on Delivery): The invoice value of the shipment
booked by shipper will be collected from the consignee in the form
of a demand draft at the time of the delivery. The demand draft
collected from the consignee will be returned back to you to
complete the transaction.
Smart Box
Smart Box - Air Express and Smart Box - Ground Express are
convenient, economic, packaging units priced to include a door-to-
door delivery service within India. The units come in 2 sizes, 10kgs
and 25 kgs, and are designed to accommodate a variety of
products.
A wide market reach
Speedy Delivery: Carriage of the Smart Box is supported by an
integrated air and surface network to provide the fastest, most
reliable delivery service for packages.
Regional Services
Blue Dart offers the fastest, most reliable, door-to-door express
deliveries for your documents and packages to countries in the
SAARC region through Regional Priority.
Regional Priority: Documents (RPDX): The most dependable and
secure delivery for non-dutiable, critical and important shipments
such as legal documents and tenders. The Blue Dart Envelope
provides secure and attractive packaging for your documents,
brochures and reports upto 500gms.
Regional Priority: Non-Documents (RPDT): Fast reliable and safe
door deliveries for samples and non-commerical shipments.
Currently available between India and Nepal only.
Airpot-to-airport
The airport-to-airport service is an air freight service available on
the flights operated by Blue Dart Aviation between the airports of
Kolkata, Delhi, Mumbai, Bangalore, Chennai, Hyderabad and
Ahmedabad.
No Cooling-Period: All the Blue Dart Aviation warehouses are
equipped with X-ray machines, which eliminate the necessity of the
mandatory 24 hour cooling-period required for security reasons for
all air freight transported within India.
Late Night Cut-off & Early Morning Deliveries: With Blue Dart
Aviation's night operations, shipments manufactured during the day
INTERNATIONAL
Express Document (DOX)
DHL Express document is the fastest, trustworthy and most secure way
to deliver non-dutiable shipments such as banking and legal
documents, reports, proposals, tenders, etc. Its features are
o Priority financial industry services.
o State of the art information systems.
o Specialised fast handling facilities.
o 90% of international banks' first choice.
o Door to door one company control.
o World class packaging.
Express Pallet
The DHL Express Pallet is a convenient, flexible yet economical way to
send goods internationally. It's a special wood-free palletized
packaging, which can be 'built' to accommodate shipment as small as
50kg or as large as 100kg plus.
o Strong and durable packaging for total safety .
o Weather-resistant material to prevent water
damage .
o Packaging range.
o Fastest for international expresss packages.
o Shrink-wrapped for better protection.
o Pallet supports the weight of the shipment and
provides easier handling.
o Stay in control of your shipment anytime, anywhere
with our tracking facility.
University Express
University Express is an exclusive air express service designed to
deliver student applications to universities abroad in the most reliable,
fast and secure way.
1992: Blue Dart Express Pvt. Ltd. connects its in-house domestic E-
mail network, and sets up its employee satisfaction programme -
Survey Feedback Action (SFA).
1994: Blue Dart Express Ltd. goes public with an equity offer of 2.55
million shares, at a premium of 14 times, worth Rs: 382.5 million.
Blue Dart Express Ltd. launches Dart Apex (Domestic Air Package
Express), a multi-modal, premium package delivery service, and
COSMAT-IITM, an advanced system which includes track and trace.
Blue Dart Aviation is registered as a public limited company and
becomes the first private company to receive government permission
for operation of cargo aircraft in India.
1998: Blue Dart Aviation develops India's first Load and Trim
software for its B737F flights. Blue Dart Express Ltd. launches
SMARTBOX, its economical, packaged door-to-door product, and
extends its delivery to over 1000 locations.
2000: Blue Dart Aviation acquires its 3rd aircraft on lease. The
aircraft is scheduled for operations on the Bangalore-Delhi-Bangalore
sector. Blue Dart Express Ltd. also revamps its website replacing it
with an interactive website to support e-trade and commerce and
facilitate customer interface on the net.
2003: 2003 - Blue Dart acquires its fourth Boeing 737 freighter. With
a thrust on strengthening infrastructure, Blue Dart establishes twelve
of its own offices in the South, delivering to an additional 198
locations, expands its hub at Bhiwandi and sets up a bonded
warehouse in Mumbai. The company is selected a Superbrand from
over 700 brands across 98 categories by a jury of eminent marketing
and advertising professionals. The company celebrates its 20 years of
service to the nation on 19th November 2003
2004: Blue Dart inducts its 4th aircraft into operation on 17th May
2004, connecting Hyderabad as its 6th Aviation Hub. Blue Dart also
extends its brand into Sri Lanka through a Regional Service Alliance
with Foster Agencies Pvt. Ltd., Member of the Hayleys Group, one of
Sri Lanka's largest diversified multinationals. The Alliance will enable
customers to use Blue Dart services between 400 locations in Sri
Lanka and over 13,700 locations in India. Blue Dart acquires its fifth
Boeing 737 freighter.
2006: Blue Dart launches its unique SMS based Mobile Tracking
Service. A decade after its launch of India's first domestic express
airline, Blue Dart introduces the first Boeing 757 freighters in the
Indian skies on the 1st June 2006 with 2 of these aircraft connecting
2007: Blue Dart launches it’s fortified Ground Express Service – Dart
Surfaceline with time bound deliveries and features like DOD
(Demand Draft on Delivery), FOD (Freight on Delivery)
and FOV (Freight on Value) - Insurance Arrangement. Blue Dart
inducts 3rd Boeing B757 freighters.
Growth
Growth
Total Income-Operating profit (1996-2009)
1000
900
800
700
Rs. in Crores
600
500
400
300
200
100
0
2009 2007 2005 2003- 2001- 1999- 1997-
04 02 2000 98
Year
1000
900
800
700
Rs. in Crores
600
500
400
300
200
100
0
2009 2007 2005 2003- 2001- 1999- 1997-
04 02 2000 98
Year
160
140
120
100
Rs in Crores
80
60
40
20
0
2009 2008 2007 2006 2005 2004- 2003- 2002- 2001- 2000- 1999- 1998- 1997- 1996-
05 04 03 02 01 2000 99 98 97
Year
200
180
160
140
120
in Rs.
100
80
60
40
20
0
2009 2008 2007 2006 2005 2004- 2003- 2002- 2001- 2000- 1999- 1998- 1997- 1996-
05 04 03 02 01 2000 99 98 97
Year
Multi-dimensional Business
Strategy
Leadership:
o Blue Dart Aviation operates the only domestic express
airline in India to offer the most superior quality of service in
the country
o Operations are supported by an in-house ground-handling
and maintenance capability, bonded warehouses at all the on-
line stations, and company-owned cargo handling assets.
o Geographic reach : Operates through 25,416 locations in
India & in 220 countries
o Operations supported by 3 Boeing 737 and 4 Boeing 757
freighters supported by 5,408 vehicles, several warehouses,
4370 computers
Pioneer:
o Blue Dart was the introducer of international air package
express services in India (1983).
o It introduced the Hub-and-spoke system and a 10.30 a.m.
delivery service in India for domestic (1984).
o Blue Dart Aviation was the first private company to receive
government permission for operation of cargo aircraft in India
(1994).
o Developer of the first cargo management system in the
country, SMART. Blue Dart Aviation acquires 2 Boeing 737-200
freighters and receives ATO permission (1995).
o It was the first express company in India to receive an ISO
9001 certification, and post its website on the internet (1996).
o Pioneered concept of Franchisee Collection Centers (FCC's)
as well as the Regional Service Participants (RSP's). Blue Dart
Aviation develops India's first Load and Trim software for its
B737F flights (1998).
o Blue Dart ends its contract with Federal Express and signs
a path-breaking Sales Alliance with the World's No. 1
international air express company, DHL Worldwide Express
(2002).
o Blue Dart introduces the first Boeing 757 freighters in the
India (2006)
Product differentiation:
o Committed door-to-door time-definite delivery of
shipments with Money Back Guarantee for selected locations in
India (Domestic 1030 & Dart Apex 1200).
o Demand Draft & Freight on Delivery, Freight on Value,
o Assistance for regulatory clearances,
Strategic alliances:
o Establishment with one of the world leaders, Gelco Express
International U.K. (1983)
o Global Service Participant of FedEx (1984)
o Strategic alliance with regional players in India.
o Interline agreement with South African Airways (20th
interline alliance for Blue Dart) for shipments to and from Indian
locations through Blue Dart's infrastructure of bonded
warehouses and freighters (2002).
o With World's No. 1 international air express company, DHL
Worldwide Express (2002).
o SriLankan Airlines ink Interline Agreement to send
shipments to Sri Lanka and tranship the Sri Lankan hub to
Europe and Asian destinations conveniently, from any of the
five major Indian metros (2003).
Returns to Society:
o Blue Dart Contributes to Cyclone Affected People in Orissa
(1999): Two containerised vehicles carrying relief material
(Weighing 8-tonnes) contributed by over 3,400 Blue Dart
employees from all India for the cyclone affected people in
Orissa.
Competitive Advantages
People force: Committed, diverse and over 6,947 strong are our
most valued asset. Blue Dart accredits all its achievements to its
team that believes in themselves and their company, a team with a
winning attitude. We are a learning organization. Blue Dart values
self-development, and most of its managers are homegrown.
Air Network: The only one of its kind in the country today that is
focused on carriage of packages as its prime business, rather than
as a by-product of a passenger airline. A dedicated aviation system
to support Blue Dart's services is self-sustaining, with its own
bonded warehouses, ground handling and maintenance capability.
Financial credibility: Fitch Ratings India Pvt. Ltd. has assigned the
highest "F1+(ind)" [F one plus (ind)] rating for its short term debt
programme of Rs. 30 crores.
Further, ICRA Ltd. has also assigned the highest "A1+" (pronounced
A one plus) Rating for Blue Dart’s Commercial Paper Programme of
Rs. 25 crores.
Looking Ahead
Future Plans
Vision : "To be the best and set the pace in the express air and
integrated transportation and distribution industry, with a business
and human conscience.
Focus on its core domestic products to expand its market share and
consolidate its unique and premium position in the Indian
market. Blue Dart would also leverage its vast customer base for
global distribution through its alliance with DHL. Blue Dart plans to
leverage its established infrastructure to continue adding value and
customised solutions to the changing and evolving demands of the
customer. It would also provide global logistics customers with access
to its quality domestic and regional distribution. Blue Dart’s domestic
network will continue to differentiate itself in all areas of its core
competencies - supply chain management, logistics and Ecommerce.
Reference :
www.bluedart.com