Blue Dart Company Profile
Blue Dart Express Limited (BDEL), promoted in 1983 as a partnership firm, operates in the express segment of the courier industry. The industry, worth Rs 1370 Crores is characterised by door to door pickup and delivery of documents, packages and commercial shipments. BDEL is the largest player in the domestic segment with 22 % market share, having strong network, covering 1101 service locations within the country. The company raised Rs.38.25 crores in Sep.’94 through its maiden public issue of Equity shares at a premium of Rs.140 per share to fund the construction of a ‘Super Hub’, install VSAT and purchase cargo vehicles and mechanised handling equipments.
BDEL has tied up with Federal Express (Fed Ex) of USA, which provides its access to over 212 countries through the FexEx network. However, following the May’97 agreement with FedEx which paved way for FedEx to set up independent operations in India, income from International business has come down since the earnings of BDEL are now restricted only to pickup/delivery charges from FedEx for its International business.
During 95-96, BDEL acquired two aircrafts -from the Indian Airlines and these aircrafts have been leased to its wholly owned subsidiary viz. Blue Dart Aviation Limited (BDAL) to which it pays lease rentals for the utilisation of above aircrafts for its express business. In a recent arrangement, BDEL has sold the above aircrafts to ICICI Limited for a consideration of Rs.29.09 crores to reduce its term liabilities and improve the liquidity position. ICICI has in turn leased the aircrafts to BDAL for a period of 7 years.
Blue Dart has increased thrust on its domestic operations and made conscious efforts to reduce the operational costs. Considering the huge investments in infrastructure (aircraft, software), the company has created an effective entry barrier and is in position to command premium. With advent of e-commerce, BDEL is all set to exploit the opportunities offered by e commerce market, with software and system in place and support provided by FedEX
Major line of Business:
Blue Dart operates in the express segment of the courier industry
Select Products and Services:
Blue Dart operates in the express segment of the courier industry which is characterised by door to door pickup and delivery of documents, packages and commercial shipments
The company has entered E-commerce market for SCM (supply chain management).
Key Differentiating Factors:
Blue Dart Express Ltd. is the leader in domestic courier industry and has a tie up with FedEx, the international leader for its overseas consignments.
BDEL is the only courier company operating aircrafts in India,
The company has sophisticated software for tracking of packages in place, which help the company to deliver quality service. The company has achieved 99.8% reliability in timely delivery of consignments.
The company is set to exploit the E-commerce market as it is already in processes of developing software and system for SCM (supply chain management). BDEL is presently providing service to rediff.com through an agreement to FedEx
Opportunities:
The opportunities for Indian MBAs exist in sales and marketing.
Website: www.bluedart.com
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