10 karan chawla

M

ByThe docKintetsuof bothJoint Ve

Mer

yKarcument conu world Exp the compa

enture

rge

ranCntains the hpress belongany before &

er&

Chawistory of Megs to the Jap& after mer

&A

wlaRerger of thepan and th

rger and tot

Acq

Rolle Gati Limitee achievem

tal earnings

uis

Numed an Indian

ments and tafter forma

siti

mbern Originatehe total revation of the

ion

r–10d companyvenue earnie GATI KWE

n

0 & ng

1. Intro

2. Visio

3. Intro

4. Visio

5.Why G

6. Achie

7.Balan

8.Balan

oduction of

ons and Valu

oduction of

ons & Value

GATI – KWE

evements o

nce Sheet of

nce Sheet of

Gati. ............

ues of Gati .

Kintetsu. ...

es of KINTET

E joint vent

of GATI – KW

f GATI LTD

f Kintetsu W

......................

......................

......................

TSU..............

ture took p

WE JOINT V

.....................

World Expr

KARA

......................

......................

......................

......................

place...?........

VENTURE th

......................

ress Inc. ......

AN CHAWL

......................

......................

......................

......................

......................

hat took pla

......................

......................

A Roll Nu......................

......................

......................

......................

......................

ace. ..............

......................

......................

umber -- 10 ......................

......................

......................

......................

......................

......................

......................

......................

............ 2

............ 3

............ 5

............ 6

............ 7

............ 9

.......... 11

.......... 12

1 Karan Chawla

KARAN CHAWLA Roll Number -- 10

2 Karan Chawla

1 . INTRODUCTION OF GATI. Gati started their pioneer service in India in 1989. Gati was only the company in those

days to print the docket and offer a money back guarantee and provide the payment

facility after providing Proof of Delivery (P.O.D).

Gati started their first service between Madras and Madurai. After sometime. Gati started

their service between 4 major cities Hyderabad, Bangalore, Madras, Hosur (North

Bangalore) in 1989 in genetic cargo segment.

Gati business model was different. Gati never operated their own Vehicles from

beginning. Instead they operated the concept of getting other vehicle services and

incorporated the name of “GATI ASSOCITES”.

"Gati Limited" Gati Profile. Gati official website. 29/07/2015 <http://www.gati.com/html/aboutus_gati-

profile.html>


3 Karan Chawla

2 . VISIONS AND VALUES OF GATI Vision of Gati

Gati has Supply Chain Services and Solutions and a leader in the Asia Pacific region.

Gati has Quality services with delight customers by setting new trends by innovations and

technology.

Gati is the most preferred organisation for all stakeholders.

Gati takes responsible for corporate citizen with commitment to environmental protection

and conservation.

Gati has an elegant method to meet the customer’s wide range of expectations by

customising their offerings and care for the objects.

Gati has an organised teamwork with cost efficient, passion, integrity and responsibility.

Gati has a disciplined chain of the action to achieve the goal at given time to the

customer’s and value their protection and quality delivery.

Gati promise to stay ahead in quality delivery, high network, high responsible people,

with technology and transaction.

Gati wants to set up an international market in logistics sector and wants to create a

worldwide network.

Gati will create a wide range of fastest networking and delivery service all over the world.

"Gati Limited" Gati Visions . Gati official website. 29/07/2015 <http://www.gati.com/html/aboutus_vision-

values.html>

Values

“Our va

sensitiv

behavio

to achie

"Gati Lim

values.ht

of GATI.

alues are the

vity and deli

our, action a

eve sustaina

mited" Gati V

tml>

e key drivin

iver beyond

and delivery

able heights

alues. Gati off

ng forces tha

d customer's

y promise. T

in business

fficial website.

KARA

at help us al

s expectatio

These corpo

s in the long

. 29/07/2015

AN CHAWL

lign our org

ns. They en

orate values

g run.”

M

<http://www.

A Roll Nuganisation to

ncompass ou

will propel

Mr.Mahen

Foun

gati.com/htm

umber -- 10 owards cust

ur attitude,

l the organis

ndra Ag

nder & C

ml/aboutus_vis

tomer

sation

garwal

C.E.O

ion-

4 Karan Chawla


5 Karan Chawla

3 . INTRODUCTION OF KINTETSU. Kintetsu started their business in the year 1948 and became IATA agency (International

Air Transport Association).

Kintetsu expanded their business and established the in Hong-Kong and U.S.A. in 1969.

Later Kintetsu established their office in Beijing in 1985 and Shanghai in 1989.

Kintetsu obtains the first ISO9002 certification in Japan's air freight industry.

Kintetsu established their business in the city of China Shenzhen in 1995.

Kintetsu World Express (India) Pvt. Ltd. is established in India.

Kintetsu World Headquarters (WHQ) is formed at KWE Head Office in Tokyo in 2002.

Kintetsu Stock listing upgraded to the First Section of Tokyo Stock Exchange in 2003.

Kintetsu established Bangladesh Delegate Office.

Later in 2012 Gati needs to expand their business in Japan, and Kintetsu needs to expand

their business in India. So merger of Gati and Kintetsu took place in Feb 2012.

"Kintetsu World Express" History. Kintetsu World Express official website. 29/07/2015

<http://www.kwe.com/corporate/history.html>


6 Karan Chawla

4. Visions & VALUES OF KINTETSU. Kintetsu was fully integrated international freight and logistics services by Air, Sea and

Road.

Kintetsu wants to develop the tracking and tracing of the courier and parcel with supply

chain partners.

Kintetsu was having an expertise in cargo insurance, permits and regulatory obligations

Kintetsu has worldwide office networks, which provides fully integrated cargo logistics

services including brokerage, warehousing, distribution and inventory management.

Kintetsu want to add value to customers and contribute to worldwide economic growth by

their comprehensive, high-value, total logistics services.

Kintetsu regular logistics services and solutions on a local, regional and global scale.

Kintetsu wants to fix their position leader in logistics industry by providing excellence

services and highly innovation solutions.

Kintetsu prevent evnivormental in co-operation with clients, companies and

subcontractor.

Kintetsu promote global pollution prevention and conduct continuous improvement

activities.

Kintetsu do all there activity with effectiveness and reliability and win the customers trust

over them.

Kintetsu will have to cover new emerging markets and more complex supply chain

solution.

"Kintetsu World Express" Visions and values of Kintetsu World Express. Kintetsu World Express Official

Wesite. 30/07/2015 <http://www.kwe.com/corporate/businessline.html


7 Karan Chawla

5.WHY GATI – KWE JOINT VENTURE TOOK PLACE...? Gati-Kintetsu Express Private Limited (GATI-KWE) is a joint venture company between

Gati – India’s pioneer and leader in Express Distribution and Supply Chain Solutions and

Kintetsu World Express Japan’s leading logistics provider.

The joint – venture GATI – KWE offers an unmatched service offering that’s brings in

local experience with global expertise.

The partnership will enable the KWE to further expand and strengthen its global

operations, with Indian market.

To boost the cargo of India which is been carried on the global scale, with the GATI, a

major distribution services in India.

For domestic delivery services, the company provide the wide range of service like fixed

delivery time service, automated messaging service to send POD (proof of delivery)

information to the clients. Gati has around 4000 trucks in operation and more than 500

offices all over India.

These services, which will combine the KWE Group’s global network and Gati’s high-

quality domestic distribution services, are expected to increase the handling volume in the

Indian business on global scale.

The KWE Group, spearheaded by KWE India, will actively promote sales together with

the joint venture, work to enhance its presence in the Indian distribution business,

improve its global competitiveness, and expand the business.

To offer the service to the customer with the premium services like providing docket

number system, tracking the product, information status via sms services.

To explore the induction of a strategic investor in our coast-to-coast shipping business.

Gati will become debt-free after it finalises another joint venture with a global shipping

company, in which it will move its entire shipping business.

"Kintetsu World Express" Kintetsu Joint Venture in India. Kintetsu World Express official website. 29/07/2015

<http://www.gatikwe.com/jointventure/GATI-KWE_Profile.pdf>

To onum

To e

Gat

com

Ship

ship

To e

Gat

com

Ship

hipp

To i

dev

Reduc

To r

inve

vent

Gat

pare

Furt

limi

"Kintetsu

<http://w

offer the sermber systemexplore the

i will becom

mpany, in wh

pping ventu

pping divisi

explore the

i will becom

mpany, in wh

pping ventu

ping divisio

increase the

eloped tran

ce Debt

reduce the d

estment of R

ture.

i's bottom-l

ent company

thermore, th

ited.

u World Expre

www.gatikwe.c

rvice to the m, tracking th

induction o

me debt-free

hich it will

ure will also

on currently

induction o

me debt-free

hich it will

ure will also

on currently

e interest of

sportation f

debt of Rs. 3

Rs.267 cror

line will imp

y, while its

he deal will

ess" Kintetsu

com/jointvent

customer whe product,

of a strategic

e after it fin

move its en

o take Gati’s

y.

of a strategic

e after it fin

move its en

o take Gati’s

.

f the stakeho

facilities wit

330 crore th

e from KW

prove as div

profits will

reduce the

Joint Venture

ture/GATI-KW

KARA

with the prem informatioc investor in

nalises anoth

ntire shippin

s debt of Rs

c investor in

nalises anoth

ntire shippin

s debt of Rs

olders in the

th the new t

hat is carrie

WE will be pr

vidends from

l be seen in

interest bur

e in India. Kin

WE_Profile.pd

AN CHAWL

mium servin status vian our coast-

her joint ven

ng business

s.120 crore w

n our coast-

her joint ven

ng business

s.120 crore w

e stock mark

technologie

d by Gati's

rimarily use

m the joint v

the consoli

rden by abo

ntetsu World E

df>

A Roll Nuces like prosms service

-to-coast shi

nture with a

.

which has b

-to-coast shi

nture with a

.

which has b

ket and prov

es and fastes

EDSC busi

ed to retire t

venture wil

dated result

out Rs. 35 cr

Express officia

umber -- 10 oviding dockes. ipping busin

a global ship

been carried

ipping busin

a global ship

been carried

viding the h

st delivery s

iness, the

this debt in

ll come to th

ts of Gati.

rore of Gati

al website. 29/

ket

ness.

pping

d by

ness.

pping

d by

highly

services.

the new

he

i

/07/2015

8 Karan Chawla


9 Karan Chawla

6. ACHIEVEMENTS OF GATI – KWE JOINT VENTURE THAT TOOK PLACE. Gati-kintetsu Pvt Ltd (Gati-KWE) is a joint venture company between Gati – India’s

pioneer and leader in Express Distribution and Supply Chain Solutions and Kintetsu

World Express Japan’s leading logistics provider.

Gati-kintetsu is a 5500 people strong company with an annual turnover of Rs 15273

million.

Gati-kintetsu has a reach of more than 99% of districts in India.

Gati-kintetsu is using more than 5000 vehicles and around 32 airline sectors to deliver the

shipment on right time, at right place, with proper conditions.

Gati-kintetsu today is the most preferred Express Distribution and Supply Chain

Solutions provider because of the ability to handle every distribution need.

Gati-kintetsu offers a premium services, for time critical shipment or Express services for

cost effective and direct expense route connectivity.

Gati-kintetsu won Various Famous Awards after Merger like

Year Category Award

2013 Logistics & Supply Chain Leadership Awards "Best Road Service Provider of the year"

2014 ICC Supply Chain & Logistics Excellence Awards "Road Transportation"

2014 3rd Asia Manufacturing Supply Chain Summit

"Achievement in Continuous

Improvement"

2014 8th Express Logistics & Supply Chain Conclave Best Road Service Provider of the Year

2014 8th Express Logistics & Supply Chain Conclave Supply Chain Innovation of the Year

2015 CII Scale Awards Exemplary position under 3PL category

"Gati - KWE " Achievements of Gati - KWE. Gati-KWE official Website. 29/07/2015

<http://www.gatikwe.com/about-us>


10 Karan Chawla

Gati-kintetsu has won much more various awards except this and has raied ther turnover

to 15273 million.

Japan’s KWE has invested Rs 267.7 cr in Gati-Kintetsu Express

Gati-kintetsu brings together the strengths of Gati’s local expertise in Express

Distribution and KWE’s global experience in 3PL warehousing, supply chain and freight

forwarding capabilities creating an unmatched offering and superior value to customers.

The two countries target USD 25 billion worth of bilateral trade by 2014 from the present

USD 10.3 billion.

After merging, Gati holds 70 per cent stake and 30 per cent will be held by Kintetsu

World Express (KWE) in Gati-Kintetsu Express Pvt Ltd (GATI-KWE).

"Gati - KWE " Achievements of Gati - KWE. Gati-KWE official Website. 29/07/2015

<http://www.gatikwe.com/about-us>

"Gati-KWE" Achievement of Gati-KWE. Business Standard. 30/07/2015 http://www.business-

standard.com/article/press-releases/japan-s-kwe-invests-rs-267-7-cr-in-gati-kintetsu-express-

112062800090_1.html


11 Karan Chawla

BALANCE SHEET OF GATI LTD ( ---------- Rs. In CR -------)

Particulars 2009-10 2010-11 2012-13 2013-14

Sources of fund Total Share Capital 17.03 17.2 17.32 17.45Equity Share Capital 17.03 17.2 17.32 17.45Share Allocation Money 17.64 16.41 0 0Prefrence Share Capital 0 0 0 0Reserves 259.41 271.16 818.23 616.59Networth 294.08 304.77 835.55 634.04Secured Loan 296.86 277.55 0 49.14Unsecured Loan 156.86 39.83 168.1 135.93Total Debts 453.72 317.38 168.1 185.07Total Liabilities 747.79 622.16 1003.63 819.11 Application of Fund Gross Block 502.23 494.05 68.94 77.18( - ) Revaluation Reserves 6.91 6.89 5.96 5.96( - ) Accum Depreciations 95.03 103.22 0 9.16Net Block 400.29 383.94 62.98 62.06Capital Work in Progress 35.53 4.62 23.8 37.55Investments 70.63 77.37 744.63 643.69Inventories 10.24 10.08 1.21 1.57Debtors 133.02 161.95 28.11 37.91Cash & Bank 9.24 21.48 13.17 13.06Total Current Assets 152.5 193.51 42.49 52.54Loans & Advances 177.17 269.41 234.14 144.21Fixed Deposits 3.52 0 0 0Total CA, Loans & Advances 333.19 462.92 276.63 196.75Deferred Credit 0 0 0 0Current Liablities 56.3 253.26 66.1 85.55Provisions 35.55 53.43 38.31 35.4Total CL & Provision 91.85 306.69 104.41 120.95Net Current Assets 241.34 156.23 172.22 75.8Miscellaneous Expenses 0 0 0 0Total Assets 747.79 622.16 1003.63 819.11


12 Karan Chawla

BALANCE SHEET OF KINTETSU WORLD EXPRESS INC. (In JPY Millions) Particulars 2010-11 2011-12 2013-14 2014-15 Assets Cash and Short Term Inverstment 31.89B 36.99B 50.37B 53.33B Cash only 31.76B 36.94B 50.36B 53.32B Short Term Investment 137B 51M 5M 7M Total Accounts Receivable 42.1B 42.77B 56.44B 68.69B Accounts Receivable, Net 42.1B 42.77B 56.44B 68.69B Accounts Receivable,Gross 42.42B 43.07B 56.79B 69.08B Bad debts / Doubtfull accounts (246M) (292M) (350M) (395M) Other Current Assets 3.8B 3.55B 6.88B 9B Miscellaneous Current Assets 3.8B 3.55B 6.88B 9B Total Current Assets 77.86B 83.32B 113.68B 131.01B Net Property,Plant & Equipment 32.76B 31.66B 35.99B 39.83B Property Plant and Equipment Gross 54.23B 53.97B 64.08B 70.59B Building 31.65B 31.75B 34.69B 36.65B Land & Improvments 10.71B 10.52B 11.16B 11.82B Other Property, Plant and Equipments 8.3B 8.19B 11.3B 13.45B Accumulated Depreciation 21.47B 22.31B 28.09B 30.75B Total Investments and Advances 2.85B 4.45B 11.13B 15.42B Other Long-Term Investments 1.45B 2.88B 4.36B 6.3B Long-Term Note Receivable 0 0 379M 248M Intangible Assets 1.83B 1.6B 1.41B 2.52B Net Goodwill 355B 335M 397M 1.38B Net Other Intangibles 1.48B 1.26B 1.13B 1.01B Other Assets 3.92B 3.54B 4.95B 4.64B Tangible Other Assets 3.92B 3.54B 4.95B 4.64B Total Assets 120.28B 125.44B 167.97B 194.55B


13 Karan Chawla

Balance Sheet Of Kintetsu World Express Inc. Liabilities & Shareholders Equity 2010-11 2011-12 2013-14 2014-15 ST Debt & Current Portion LT Debt 9.28B 9.22B 9.25B 8.68B Short Term Debt 8.85B 8.9B 8.52B 8.3B Long Term Debt accounts 426B 318M 730M 384M Accounts Payable 19.84B 19.4B 24.28B 28.68B Income Tax Payable 2.04B 1.92B 2.12B 2.68B Other Current Liabilities 11.17B 9.93B 11.79B 13.73B Accrued Payroll 1.7B 1.7B 1.94B 2.48B Miscellaneous Current Liabilities 9.4B 8.14B 9.85B 11.25B Total Current Liabilities 42.33B 40.47B 47.44B 53.77B Long-Term Debt 5.4B 5.25B 5.83B 7.05B Long-Term Debt 4.85B 4.8B 5.27B 6.61B Non-Convertible Debt 4.85B 4.86B 5.27B 6.61B Capitalized Lease Obligations 546B 391M 556M 441M Provision for Risks & Charges 1.04B 1.32B 3.05B 3.3B Deferred Taxes (925M) (675M) (504M) 79M Deferred Taxes – Credit 124M 194M 233M 664M Deferred Taxes – Debit 1.05B 869M 737M 585M Other Liabilities 70M 130M 186M 84M Deferred Income 70M 130M 186M 84M Total Liabilities 48.96B 47.36B 56.74B 64.87B Common Equity (Total) 69.33B 76.09B 108.35B 126.01B Common Stock Par/Carry Value 7.22B 7.22B 7.22B 7.22B Retained Earnings 64.33B 72.69B 88.65B 97.53B Unrealized Expenses (7.16B) (8.86B) 6.7B 14.13B Unrealized Gain 79M 180M 1.24B 2.19B Treasury Stock (1M) (1M) (1M) (2M) Total Shareholders' Equity 69.33B 76.09B 108.35B 126.01B Accumulated Minority Interest 1.99B 1.99B 2.88B 3.68B Total Equity 71.32B 78.08B 111.23B 129.69B Liabilities & Shareholders' Equity 120.28B 125.44B 167.97B 194.55B

"kinteshu"Kintetsu World Express Inc." Balance Sheet. 29/07/2015. MarketWatch. 29/07/2015 http://www.marketwatch.com/investing/stock/9375/financials/balance-sheet

10 karan chawla

Documents