Bluedart Express

SCM Bluedart

Ninad Tambe1402104Bluedart Express

IntroductionBlue Dart is South Asia's leading integrated air express carrier and premium logistics-services provider. They have the most extensive Domestic network covering over 3,880 locations, and service more than 220 countries and territories worldwide through their Sales alliance with DHL, the premier global brand name in express distribution services. The company has been re-certified as one amongst a handful of Indian companies to the new global ISO 9001 - 2000 standards for "Design, management and operations of countrywide express transportation and distribution services within the Indian sub- continent and to international destinations serviced through multinational express companies". The Company is South Asia's leading air express transportation company and logistics service provider and offers a comprehensive range of services and products for both domestic and international shippers. Blue Dart's continuous commitment towards identifying and addressing the needs and concerns of the Customers has enabled it to provide unmatched standards of service quality with over 99.95% reliability levels in the express industry. Over the years, Blue Dart has continuously evolved to meet the growing demands of business and customers, innovating new products and expanding its network and infrastructure, thereby increasing its market share in the country. During the year under review, the company achieved yet another milestone of handling 100,000 shipments a day. Also, the company handled during the year over 28 million shipments, weighing over 76,000 tons. Their vision is to establish continuing excellence in delivery capabilities focused on the individual customer. In pursuit of sustainable leadership in quality services, they have evolved an infrastructure unique in the country today. State-of-the-art Technology, indigenously developed, for Track and Trace, MIS, ERP, Customer Service, Space Control and Reservations. Blue Dart Aviation, dedicated capacity to support our time-definite morning deliveries through night freighter flight operations. A countrywide Surface network to complement our air services Warehouses at 14 locations across the country as well as bonded warehouses at the 6 major metros of Bangalore, Chennai, Delhi, Mumbai, Kolkata and Hyderabad ISO 9001 - 2000 countrywide certification by Lloyd's Register Quality Assurance for our entire operations, products and services. Ecommerce B2B and B2C initiatives including partnering with some of the prime portals in the country.

Competitive Advantage lies in: Vast and unparalleled Domestic Network Linked by some of the most advanced communications systems and positioned to offer a consistent, premium, standardized quality of service. A spectrum of services to provide customized solutions They are the only express carrier in the country today which offers an entire range of services that extend from a document to a charter-load of shipments. Their services are relentlessly monitored to deliver a net service level of 99.96%. Customs and Regulatory expertise They have a dedicated team of specialists who provide the expertise for customs as well as regulatory clearances at all States within the country, to support seamless service to the customer. Technology Designed to enhance the reliability of their operations and process efficiency, and add value to the customer through time and cost savings. 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. People force Committed, diverse and over 3,900 strong are their most valued asset. All their achievements have been possible because they have a team who believes in themselves and their company, a team with a winning attitude. They are a learning organization, they value self-development, and most of their managers are home-grown. Vision To be the best and set the pace in the air express integrated transportation and distribution industry, with a business and human conscience. They commit to develop, reward and recognize their people who, through high quality and professional service and use of sophisticated technology, will meet and exceed customer and stakeholder expectations profitably. Corporate Governance Corporate Governance is the combination of voluntary practices and compliances with laws and regulations leading to effective control and management of the Organization. Good Corporate Governance leads to long term shareholders value and enhances the interest of other stakeholders.Blue Dart is fully committed to good Corporate Governance and has complied with the Corporate Governance Code as stipulated under the provisions of Clause 49 of the Listing Agreement with the Stock Exchanges. It believes in providing services through transparency in all its dealings. It believes Corporate Governance is an important instrument for shareholders' returns and value enhancement.Bluedart DHL relationshipOn the 12th September 2002, Blue Dart and DHL signed a Sales Alliance Agreement which came into effect from the 1st October 2002. The Agreement is for duration of five years on a principal to principal basis.Blue Dart chose to ally with DHL as it is the #1 international air express company in the world, with superior hi-tech on-ground infrastructure, unmatched cross-border specialization, greater flexibility of its network and the strongest brand recognition in India and in the world. The coming together of the world's No. 1 international air express service provider and India's No. 1 domestic express services provider is a logical step in a win-win relationship to benefit all the parties involved, the customer and the stakeholders of both organizations. Blue Dart believes that the alliance would bring the DHL advantage to Blue Dart's customers, resulting in greater customer satisfaction.DHL is the world's leading express and logistics company offering customers innovative and customized solutions from a single source. With global expertise in solutions, express, air and ocean freight and overland transport DHL combines worldwide coverage with an in-depth understanding of local markets. DHL's harmonized international network links more than 220 countries and territories worldwide.DHL continues to be at the forefront of technology and, with more than 150,000 dedicated employees, guarantees fast and reliable services aimed at exceeding customers' expectations. Based in Brussels, Belgium, DHL is 100% owned by Deutsche Post World Net.In addition, the alliance provides both organizations with the flexibility to grow their individual businesses unhindered. Blue Dart has a unique domestic infrastructure and is the only domestic cargo airline in the SAARC region, with a fleet of 3 Boeing 737 freighters. Blue Dart operates over 50 night and 8 day missions per week, carrying and distributing via its aircraft over 600 tones of time-sensitive, express packages each week, besides an additional 1000 tones per week through other modes. Further, its aircraft are strategically positioned in Kolkata, Chennai and Bangalore, in close proximity to the countries of Bangladesh, Sri Lanka and the Maldives. Blue Dart can now offer its services to any customer, including any multi-national air express operator, who wishes to avail of quality distribution within the country and the region.Bluedart Aviation Ltd:Blue Dart Aviation Ltd. was incorporated in May 1994 as a 100% subsidiary of Blue Dart Express Limited, and launched its operations with a fleet of 2 Boeing 737-200 freighters on the 17th June 1996. Blue Dart Aviation Ltd. was created primarily to support the growing demands of Blue Dart Express Ltd. In an express industry where growth, year over year, consistently exceeded 35%, the management viewed the delivery capabilities of the domestic airlines inadequate and a limitation to the explosive growth of air express.The restricted day flights and capacities oriented to passenger requirements were not consonant with the demands of the express market, which is committed to morning deliveries that rely on guaranteed space and late night operations. Taking a cue from the enormous success of the U.S. express industry, which started with a 4% share in 1977, averaged a compounded annual growth rate of 25% and progressed to claim close to 60% of the U.S. market, Blue Dart Express Ltd. made a path-breaking decision to create its own infrastructure and buy its own aircraft. It set up the first and, till date, only domestic freighter operations in India.The night operations were designed to meet the specific needs of the business community as they focused on late night cut-offs and early morning deliveries. Shipments originating from a city at the end of the business day could arrive before the start of the next business day at their destinations. Customers could now rely on air capacity that was focused to service business needs and not passenger travel schedules. Demand for express package services surged, spurring capacity addition and Blue Dart added a fifth aircraft to its fleet in 2004. Blue Dart Express Limited has divested 60% of its shareholding in Blue Dart Aviation Ltd. on 11th March 2005, and Blue Dart Aviation has since been contracted to provide dedicated services to Blue Dart Express Limited.Blue Dart Aviation Ltd. has many firsts to its credit: The first Indian-manufactured main deck loaders at all its 5 on-line stations - Chennai, Bangalore, Mumbai, Delhi and Kolkata. The specs were provided by Blue Dart Aviation, and design and manufacture undertaken by a Coimbatore-based manufacturer, MAK Control, in a 4-month period at less than 20% of the cost of the international equivalent. In collaboration with the Madras Institute of Technology, it has developed the only Indian software for handling of the Load and Trim Sheet, STAB (System of Trimming and Balancing), curtailing handling time by 80%. It has also developed the following software applications, in-house, that have resulted in improved safety standards, enhanced efficiency in daily operations, better time-management, lower manpower costs, and cost-savings in operations because of increased fuel efficiency:- SALIM (System for Aircraft Logistics Inventory Management- FUSION (Flight Updating, Scheduling, Inquiries and Operational Notes)- SODA (System of Digital Flight Data Recorder Analysis)- VINDAS (Voice Integrated Data Analysis System) - integrating the cockpit voice recorder in real-time with the Digital Flight Data Recorder. Its own maintenance capability to clear aircraft through the D-Check level. Warehouses at all the 6 airports are equipped with X-ray machines, making it the only private operator capable of accepting freight without the requisite cooling-period for security. Bonded warehouses with customs personnel to enable transshipment of cargo within India. Established at substantial initial investment to the company, this facility has enabled distribution of imports within the country, has provided exports access to and from the gateways of international airlines, and resulted in returns forthe organization. Given the high operating costs and decreasing yields, this facility provides international airlines a cost-effective option to restrict their on-line stations and enhance their marketing possibilities by utilizing the distribution capabilities of Blue Dart AviationA third aircraft was inducted into the network in February 2001, to meet increased customer demand. A fourth aircraft was acquired in June 2003 to augment capacity and connect a sixth aviation hub, Hyderabad, and a fifth aircraft has been inducted in December 2004, to support Blue Dart's future expansion plans.Blue Dart Aviation Limited,The only Jet Cargo Aviation Company possessing B737-200 freighters in India, operating and connecting the metro cities of Chennai, Bangalore, Mumbai, Delhi and Calcutta.ProfileBlue Dart, a Public Company registered under the Indian Companies Act, 1956 situated at Chennai, India, operates B737-200 freighter version modified aircraft. Blue Dart operates the aircraft at night ex - Chennai and Calcutta connecting enroute Bangalore, Bombay and Delhi for overnight next day delivery of Express and Cargo loads.Blue Dart has in-house Engineering, Quality Control, Ground Handling, Security facilities to meet the business of carriage of Express and Cargo loads on the above sectors. Blue Dart is the only jet cargo airline in India who offer various services including Air Cargo Movement (Charters), Engineering, Software Development, Aviation Projects and Flight Handling Services.

History and Milestones

1983:Khushroo Dubash, Clyde Cooper, and Tushar Jani establish Blue Dart Courier Services with a capital base of Rs: 30,000. They forge ties with Gelco Express International U.K., and introduce India's first international air package express service.

1984:Blue Dart Courier Services is the first carrier in India to provide domestic and international on-board couriers, a hub-and-spoke system and a 10.30 a.m. delivery service.

1988:Blue Dart Courier Services establishes real-time, on-line tracking for all international shipments.1991 Blue Dart Express Ltd. was incorporated on 5th April. The company was converted into a public limited company on June 15th, 1994 and the certificate of incorporation on change of name was issued on June 17th,1994. The Company is engaged in the courier business for carriage and door-to-door delivery of commercial documents, samples, panels and printed matter in India and throughout the world. The name of the firm was changed to Blue Dart Express on October 1st,1990 and the firm was registered as a private limited company on April 5th 1991. The Company acquired, developed and set up a centralised international and domestic super hub with computerised links to all it major centres.The Company also plans to link its major centres by satelite very small Aperture terminals. The Company proposes to add to its existing fleet of light commercial vehicles and pick up vans at various placesto cater to the growing business needs. Some of the new products include: (i) Voice Dart: This is 24hr. hotline available to the customer in selected cities of the country. It is an interactive voice response computer system that enables customers to access key information regarding the range of services offered by the company, to track the states of their consignment and leave messages via a mailbox all in a voice form; (ii) Power Dart: a software-run-system which is installed at the customer premises. Through a dial-up computer modem installed at the customer premises, he can directly access the company's database and retrieve relevant information of his shipments; (iii) Dart Collect: Offers the overseas consignees receiving shipments from India, the facility to pay the freight changes in foreign currency; (iv) Dart Apex: This is a day definite door-to-door product for shipments above 20 kgs. travelling to select cities within the company network; (v) IXF-2: This is a day definite door-to-door service for international shipments weighing above 45 kgs. to destinations in the USA.1992 The Company finalised negotiations with Federal Express International Inc. in respect of Global service program contract and with federal Express Corporation in respect of Trademark use Agreement and End User Agreement for cosmos software. 1993 The Company introduced barcode scanners and bar coded Air waybills to enhance the quality of tracking operations. The company has more than 400 users who communicate through E-Mail. The Company was appointed as General Sales agent in India of Gederal Express enabling the company to pickup heavy weight commercial shipments for door-to-door delivery. 1994A New product `Dart Apex' for door to door shipments above 20 kgs was launched. Other systems installed to offer greater reliability to customers are oracle platform, bancode technology etc. The Cosmat II has enabled decentralisation of Company's operation. The Company acquired premises in Bangalore for provision of warehousing facility. 60,50,000 No. of equity shares of Rs 10 each issued, subscribed and paid-up (1,00,000 shares to promoters on 5.4.1991; 1,00,000 Rights equity shares in proportion 1:1 on 11.10.1993; 24,00,000 bonus equity shares allotted on 6.1.1994 prop. 1:12; 32,50,000 bonus equity allotted on 3.6.1994 in prop. 1:1.25; 2,00,000 shares to employees/directors/associates on 13.6.1994); 25,50,000 No. of equity shares of Rs 10 each were issued at a premium of Rs 140 per share to the public in September 1994. (25,50,000 shares partly paid up). The Company has established computer installations at 38 major offices. 1995VSATs were installed at eight locations across the country to help E-mail networks in India as well as the Domestic (Cosmat-2) and international (cosmos) tracking system and central aviation load booking systems (SMART). Two software packages viz. `Powerdart' using which the customer can log into the Company's database and access data relating to his shipments and the other one `Faxdart' is a tool to automatically fax to the customer relevant information about his shipments was developed during the year. The Company acquired 2 Boeing 737-200 aircraft offered by Indian Airlines. The aircrafts were sent to USA for conversion from passenger to cargo version and named as vision I and vision II.The Company proposed new ATA (Airport to Airport), DTA (Door to Airport), and ATD (Airport to Door) Products. The Company signed an agreement with Federal Express International Inc. through which it became the official GSA of Fed Ex in India. The Company entered into an agreement for purchase of 35,000 sq. ft.of land situated in the vicinity of International Airport for constructing Superhub & Technology centre for housing the company's communication and data processing facilities. Blue Dart Aviation Ltd. is a subsidiary of the Company and launched door-to-door domestic express cargo aviation system. The Company signed an agreement with Federal Express International Inc., through which it became the official GSA of FedEx in India for air freight products. FedEx has taken a significant step forward to receive the ISO 9001 certification and is the first Express Company in the world to have received this certification. 1996 The Company has developed two software packages - namely `Powerdart' and `Faxdart.' The Company has entered into an agreement with its wholly owned subsidiary company for lease of the 2 aircraft. The Company has received a `AA-' rating for its proposed issue of Rs. 15 crores Non-convertible debentures to be issued on a private placement basis from Credit Rating Information Services of India Limited for this instrument. The Company has entered into a commercial understanding with its wholly owned subsidiary Blue Dart Aviation Limited whereby the Company has hired the entire aircraft payload capacity of two B737-200 cargo aircraft of approximately 16 tonnes per aircraft. 2,50,000 shares issued (prem. Rs 35 per share) on conversion of warrants. 1997 The Company has signed a new 5 year Global Service Program Contract with Federal Express (FedEx), which became effective from 1st October. The company has entered into various strategic alliance with regional/express courier companies in lieu of expanding its market share. Blue Dart recently became the first Express Company in India to get the ISO 9001 Certification. Federal Express Corporation (FedEX), the world's largest express transportation company, will enter the Indian air express market through a new agreement with Blue Dart, India's express company. The Company has launched its Smart Box in the eastern region to cater to the needs of small business. 1998 The Company had undertaken with the set up of the aviation system, was completed during the financial year under consideration. The Company has set up customs bonded warehouse at Chennai, Mumbai and Calcutta and transhipment facilities at all the 5 major domestic airports through which it operates. The Company has entered into appropriate interline agreements with 9 international carriers viz. Air India, Air France, British Airways, Emirates, Singapore Airlines Swissair, Air Canada, Cargolux and FedEx for movement of interline cargo. The Company has issued 23,00,000 debentures of the face value of Rs.100/- each aggregating to Rs. 2300 lakhs to Newfields Holdings Limited. The Company has subscribed to the Rights issue of 100 lakh shares of Rs. 10 each, aggregating to Rs. 1000 lakhs of Blue Dart Aviation Limited - a 100% subsidiary. The Company has entered into lease agreements for the rental of property, vehicles, computers, equipment and other assets. Blue Dart Aviation, a subsidiary of Blue Dart Express Limited has introduced India's first load and trim software for their Boeing 747 flights. Blue Dart Aviation Ltd, a wholly-owned subsidiary of Blue Dart Express Ltd, is to establish a hangar facility at Chennai airport. Blue Dart has already signed an agreement with Lufthansa Cargo. Debentures were converted into 3,066,667 No. of equity shares of Rs 10/- each at a premium of Rs 65 per share. 1999 The Company has launched its services in the Kashmir Valley. The company has entered into a regional service participant (RSP) agreement with Priority Courier Services to service the Kashmir Valley region. The company has received A+ rating from Crisil for its proposed non-convertible debentures.The Company will be setting up its Business Logistics designs. 2000 Duff and Phelps India has assigned a D1+ rating to the Rs 10 crore CP issue of the company. BDEL claims to be the largest express company in the country. - Blue Dart has a tie-up with Federal Express for this business. Blue Dart is the leader in the domestic courier industry with a market share of around 36 per cent. The Company has entered into a strategic alliance with Super Fast Courier Service in the east as part of its move to expand its reach in the secondary markets. The Company, the country's largest integrated air express company, has tied-up with China Airlines. 2001 Domestic courier major Blue Dart Express has declared a 1:1 bonus. Blue Dart Express Ltd., India's leading integrated air express and logistic service provider has signed an exclusive agreement with Crown Couriers, a leading courier company. Blue Dart Express Ltd, integrated air express and logistics company, has opened its office in Bangalore, strategically located close to the airport. 2002 Company has high load factor of 86% on its aircraft.Ties up with DHL Worldwide Express which is a five year sales alliance. Llyod's Register Quality Assurance certifies the company's new global standard ISO 9001:2000 for all its products/services.Enters into an interline agreement with South African Airways. 2003 Begins customer satisfaction standard 'net service levels' .Acquires 4th aircraft, Boeing 737 as part of its fleet expansion plans. Mr Kushroo Dubash, Director along with his family members purchases 6415 shares. Places 90-day Commercial paper at 5% with a state run bank for Rs.5 cr. Bhiwandi emerges as a warehousing hub for the company. Blue Dart inks pact with Sri Lankan Airlines 2004 Blue Dart joins hand with Hayleys 2007 Blue Dart Express Ltd has informed that Mr. Thomas Murphy as a Director of the Company with effect from September 03, 2007. Blue Dart Express Ltd has informed that the Board of Directors approved the appointment of Mr. Daniel J McHugh as an Additional Director of the Company with effect from December 23, 2008. 2009 Blue Dart Express Ltd has informed that the Board of Directors approved the appointment of Mr. Christopher Ong as an Additional Director of the Company with effect from June 02, 2009. 2010 Blue Dart honoured with 'Customer & Brand Loyalty' Award. Blue Dart Wins Four Accolades in a Row. Blue Dart wins Jamnalal Bajaj Fair Business Practices Award 2010. Blue Dart offers Express Pallet (Domestic): Convenient, Flexible, Specialized Palletized Packaging Solution priced to include door-to-door delivery service within India both by Air and Ground mode.-DHL & Blue Dart Take Gold in Reader's Digest Trusted Brand 2010 Awards. Blue Dart wins Award for Best Motivational Practice in Services 2011DHL and Blue Dart steer India's logistics in a new direction with the launch of Smart Truck. DHL and Blue Dart win a host of awards at the 5th Express Logistics & Supply Chain Conclave 2012 Blue Dart accorded 'Customer & Brand Loyalty' Award second time in a row. -Blue Dart and DHL sweep awards at the 6th Express, Logistics & Supply Chain Conclave. Blue Dart amongst the Top 25 'India's Best Companies to Work For 2012'

Mergers and Acquisition

ServicesSERVICES OF BLUE DARTREGIONAL SERVICES IN SAARC AREABetween India, Bangladesh, Bhutan and Nepal.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. The service offers access to over 13,700 locations in India, and over 800 locations in Bangladesh, Bhutan and Nepal, providing the widest coverage in the region through a quality network, an integrated air and ground infrastructure dedicated to express transportation and innovative technology support.different type of regional services: -DOMESTIC PRIORITYThe fastest, most reliable, door-to-door delivery service within India and to Bangladesh, Nepal and Bhutan for documents and small shipments under 32kgs per package. The special benefits of this service are: Delivery to over 13,700 locations in India Free pick-up from your location Real-time Tracking Regulatory Clearances Free Computerized Proof of DeliveryDART APEXDart Apex is a door-to-door delivery service within India for shipments weighing 10kgs. And above. It is the fastest, most efficient delivery solution for commercial shipments that are time-bound and are required to undergo regulatory clearances, or require special handling. Dart Apex offers you an economical option of an Airport-to-Door service from the major airports of Chennai, Bangalore, Mumbai, Delhi, Kolkata and Hyderabad to all the Dart Apex locations serviced. A customer may book space for their shipments through companys Customer Service and deliver customer shipments to Blue Dart Aviation Office at the related airport. Dart Apex also offers a further economical option of a Door-to-Airport service. A customer may book their shipments at any of companys locations serviced for this product to any of the major airports. Consignee would be required to collect the shipment from the Blue Dart Aviation office at the concerned airport.Dart Apex offers the following benefits: Wide Market Reach Single-window Clearance Real-time Information Time-Definite Delivery Free Proof of Delivery on Demand Speed Flexibility Economical

DART SURFACELINEDart Surfaceline is an economical, door-to-door, ground distribution service within India for shipments weighing 10 kgs and above. It offers a cost-effective logistics option for your less time-sensitive shipments, with the following value-added benefits: Time-bound Delivery Track your Shipment Regulatory Clearances Pick-up Convenience Secure Shipments Economical TariffSMART BOXSmart Box is a convenient, economic, packaging unit 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. The special benefits of using Smart Box are: A wide market reach Speedy Delivery Free pick-up Real-time Tracking Regulatory Clearances Proof of Delivery Trouble Free ServiceAir cargo MovementBlue Dart is established with a commitment to grow and meet the requirement of movement of Express and Cargo loads within the country and also support the interline movement of Cargo. Blue Dart has planned to specialize in domestic Charter to meet thegrowing needs of quick and reliable movement of cargo. Maintenance and Engineering Blue Dart has established captive consumption, maintenance facilities for servicing, rectification and repair of B737-200 aircraft including modification. The established facilities are equipped to undertake "D" Check, SSID, and CPCP. Service bays for radio, electrical, wheels & brakes are also established. Blue Dart continuously and progressively strives to enhance the above capabilities. Third Party Jobs Blue Dart has in-built capacity to undertake third party maintenance, repairs, modification on airframe, including modification of component in service bays. The above facilities have been availed by various airlines in the course of thirty months from inception. Software Development Blue Dart has developed in - house various packages to meet the requirements; Flight Updating Scheduling Inquiries and Operational Notes - FUSION, System for Aircraft Logistics Inventory Management - SALIM, System for DFDR Analysis for Crew Performance Monitoring - SODA, System of Aircraft Trimming and Balancing - STAB. The above systems are in use by Blue Dart and can be modified for specific customer needs. Aviation Project Consultancy Blue Dart offers aviation project consultancy relating to Flight Operations, Training, Aircraft Maintenance, Quality Control, including set up of an aviation operation in India and has a dedicated team of experienced professionals to meet customer requirements. Flight Handling Blue Dart possesses trained personnel and equipment including main deck loaders, pallet movement trolleys, and pallet builds up facilities, X-ray screening and security facilities, suitable for B727/ 737 aircraft. Blue Dart can provide services to customers at Chennai, Bangalore, Bombay, Delhi and Calcutta Maintenance Services Blue Dart can provide Engineering Services including "C" and "D" checks, modifications including STCs and Corrosion Prevention and Control Programmed, Structural Inspection. Besides scheduled checks specific services for work on engines, airframes, avionics, sheet metal, painting, structural repairs, and heavy maintenance services can provide at most competitive rates. Even though Blue Dart does not possess the Hangar, we can make suitable arrangements at reasonable rentals. ENGINEERING MANPOWER The in-house team of Engineers is led by the Chief Engineering Manager credited with20 "C" checks, 12 "D" Checks (Check II), duly assisted by experienced licensed engineers and technicians capable of NDT, Boroscope inspection, structural inspection and others, besides modifications such as TCAS, MODE "S" SB 1080 etc. QUALITY CONTROL Blue Dart further has Quality Control Department, to meet the QC requirements of the customer. EQUIPMENT & TOOLS Blue Dart possesses complete range of tools, test equipment, ground support equipment and general purpose tools including specific test equipment and non- destructive testing equipment for B737-200 maintenance and "D" Checks as also engine change equipment. INVENTORY Blue Dart possesses adequate Inventory for B737-200 spares (in excess of 7000 line items) to meet Customer requirements arising out of Maintenance orders. Blue Dart has long term established relationships with overseas reputed suppliers from USA to meet urgent maintenance requirements. LOCAL REGULATORY (DGCA) APPROVALSBlue Dart has approval for servicing B737-200 aircraft, battery shop, brake assembly shop, wheel shop, NDT shop, SSFDR/CVR Readout, VHF Tx Rx shop, Electrical repair shop, pipeline fabrication shop, sheet metal shop. Blue Dart has approval for servicing B727-200 wheel and brake assemblies. THIRD PARTY MAINTENANCE ASSIGNMENTS Blue Dart has successfully completed various jobs on Third Party aircraft of customers like PLM, GECAS, AER LINGUS, Sahara India, and Lufthansa Cargo. The assignments successfully completed for the above parties include engine change and trim run, fitment of major components like undercarriage flaps, DGCA callouts, retrieval after prolong grounding, flight release certification, C of A renewal, Export C of A, Non- destructive testing on aircraft, overhaul of brakes, wheels etc. Blue Dart can arrange customer representative review of our facilities i.e., tools, equipment and stores on request.E-Commerce InitiativesE-vision:To enable global connectivity to Blue Dart's present and future interactive technology strengths, for value added solutions. To facilitate seamless integrated transportation, distribution and supply chain management, from, to and within the region, thereby increasing value to our customers and shareholders. As a technology leader in the business of supply-chain management in the country, Blue Dart Express Limited recognized the far-reaching scope of the internet in 1996, and has been exploring web-based solutions to extend the range of services available to its customers and integrate them into its core products. It has evolved an e- strategy. This e-strategy encompasses E-Solutions to deliver additional process efficiencies to business by allowing them access to Blue Dart's e-shipping tools and integration with its e-business tools. An individual solution is available for each business, big or small, transacting off the internet or on the internet, and ranging from a stand-alone to a fully integrated one. Shipping Uses the following tools to simplify the shipping process: Location Finder: Find the service locations of Blue Dart as well as the Blue Dart counter located closest to you. You may search by city, or pin code to find one of over 13,880 locations serviced in India, Nepal, Bangladesh or Bhutan or in more than 220 countries and territories worldwide. Transit Time Finder: Check the transit times for your domestic and international shipments, and for the various services offered by Blue Dart to help you identify the service that meets your requirements Price Finder: Calculate your shipping costs for your domestic and international shipments by using our Price Finder. If you are a regular customer in need of customized pricing. Schedule a pickup on-line from anywhere in the world. Ship DartTM: A complete downloadable package for all Shipping and Tracking needs of frequent, high-volume users and e-shops. Billing The Bills and Payments tool enables credit customers to receive invoices online. You may view your out standings and download and print the invoice. You have the option to pay on-line, either through internet banking or credit card. You will receive the following on request: Invoice Debit Note Schedule a pickup (only for registered users) Online "Schedule-a-pickup" service is designed for added speed, convenience and flexibility in logging your pickup requirements. Schedule-a-pickup service allows you to register a pickup online for all services that require a door pickup. This service is available for locations serviced by Blue Dart. Currently, this service is only available from Kolkata, Delhi, Mumbai, Bangalore and Chennai - Mondays to Saturdays.

INTERNATIONAL SERVICEInternational services of Blue dart are taken over DHL EXPRESS in 2002. Blue Dart Express Limited, through its International Sales alliance with DHL, the premier global brand name in express distribution services, offers DHL Document Express (DOX), DHL Worldwide Package Express (WPX) and the Jumbo Box (Jumbo Box - 25 kgs. and Jumbo Junior - 10 kgs.), a one-stop shipping process for reliable, timedefinite, door to door delivery of international documents and packages. The service offers access to 220 countries and territories worldwide and the extensive, quality network of Blue Dart and DHL.The special benefits of the International Services are:1) A Convenient Solution for Urgent, International Documents & Shipments.2) Documents and packages will be picked-up from location, cleared through customs and delivered to consignee.3) Customs Clearance Expertise Specialists conversant with customs formalities in India as well as in 228 countries worldwide, and pre-clearance for shipments in transit available for most destinations, ensure efficient delivery.4) Real-time Tracking.5) A Cost-effective Option.6) Packaging.VALUE ADDED SERVICESValue added services on the rise. Blue Dart has started providing value-added services like logistics management, supply chain management and warehousing facilities to its clients. Going forward demand for such services from corporates is likely to grow at a fast clip. This is because by outsourcing such services to third party service providers they would be able to cut down on costs and improve their efficiency levels. For the courier companies such services would be part of the overall value proposition they would be offering their clients apart from the normal pickup and delivery. Such services have the potential for enhancing the margins of courier companies like Blue Dart. We believe that Blue Dart is best equipped to capitalize on the growing opportunities in the emerging areas of warehousing and supply chain management.

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financialsKey Balance Sheet items (in Rs.Mn.)ParticularsMarch 14March13

Reserves619.20636.15

Networth642.96659.91

Total Current Assets375.88471.21

Current Liabilities241.93175.75

Net Current Assets382.16404.24

Total Assets642.96659.91

Total debt00

Key income statement items (in Rs. Cr.)Particulars2013-142012-13

Income1934.12206.0

PBIDT214.5305.7

PBIDT Margin11.1%13.9%

Net Profit124.4188.7

Net Profit Margin6.4%8.6%

Key financial ratios of bluedartMar '13Dec '11Dec '10

Investment Valuation Ratios

Face Value10.0010.0010.00

Dividend Per Share71.002.001.00

Operating Profit Per Share (Rs)112.2375.0465.79

Net Operating Profit Per Share (Rs)913.06627.78483.57

Free Reserves Per Share (Rs)--267.35218.16

Bonus in Equity Capital73.7173.7073.70

Profitability Ratios

Operating Profit Margin(%)12.2911.9513.60

Profit Before Interest And Tax Margin(%)10.5010.3411.87

Gross Profit Margin(%)10.7010.5011.93

Cash Profit Margin(%)10.119.439.88

Adjusted Cash Margin(%)10.119.439.88

Net Profit Margin(%)8.558.088.18

Adjusted Net Profit Margin(%)8.558.088.18

Return On Capital Employed(%)41.7427.2626.23

Return On Net Worth(%)29.0318.5717.43

Adjusted Return on Net Worth(%)29.0318.4017.50

Return on Assets Excluding Revaluations273.81277.37228.17

Return on Assets Including Revaluations273.81277.37228.17

Return on Long Term Funds(%)41.7427.2626.23

Liquidity And Solvency Ratios

Current Ratio2.022.902.53

Quick Ratio2.012.862.49

Debt Equity Ratio------

Long Term Debt Equity Ratio------

Debt Coverage Ratios

Interest Cover27,123.00199,344.3310,146.46

Total Debt to Owners Fund------

Financial Charges Coverage Ratio30,571.00123.08127.51

Financial Charges Coverage Ratio Post Tax22,315.0089.0890.81

Management Efficiency Ratios

Inventory Turnover Ratio921.92----

Debtors Turnover Ratio10.418.708.22

Investments Turnover Ratio921.92----

Fixed Assets Turnover Ratio6.50----

Total Assets Turnover Ratio3.54----

Asset Turnover Ratio--2.482.32

Average Raw Material Holding------

Average Finished Goods Held------

Number of Days In Working Capital69.3589.3573.92

Profit & Loss Account Ratios

Material Cost Composition------

Imported Composition of Raw Materials Consumed------

Selling Distribution Cost Composition--0.160.12

Expenses as Composition of Total Sales1.641.190.98

Cash Flow Indicator Ratios

Dividend Payout Ratio Net Profit89.293.882.51

Dividend Payout Ratio Cash Profit75.493.292.08

Earning Retention Ratio10.7196.0997.50

Cash Earning Retention Ratio24.5196.6897.92

AdjustedCash Flow Times------

Mar '13Dec '11Dec '10

Earnings Per Share79.5151.5239.77

Book Value273.81277.37228.17

Future Plans of Bluedart

Focus on our core domestic products to expand our market share and consolidate our unique and premium position in the Indian market, and expansion into the near Mid-East and Far East markets and the SAARC(South Asian Association of Regional Co-operation) countries. Blue Dart would also leverage its vast customer base for global distribution through its alliance with DHL. We plan to leverage our established infrastructure to continue adding value and customised solutions to the changing and evolving demands of the customer. We would also provide global logistics customers with access to our quality domestic and regional distribution. Our domestic network will continue to differentiate itself in all areas of our core competencies - supply chain management, logistics and Ecommerce. Position ourselves as the preferred, seamless link to a country projected to be an economic superpower of the 21st Century. Through our technology development, premium services, quality network and strategic alliances, we plan to carve for ourselves a leadership position in the industry as India's and the region's link to the world. Continue to deliver value to our stakeholders through our People Philosophy and Corporate Governance based on distinctive Customer Service, Business Ethics and Accountability, and Profitability.

Key Challenges and Mitigants Dependence on Macroeconomic and Business Environment Develop alternate and innovative customer-centric solutions to counter any dampening in the economic sentiment

Exposure to fluctuations in Crude Oil, Diesel and Currency Fuel Surcharge based pricing mechanism to counter rise in crude prices Fuel Surcharge based pricing mechanism to counter rise in diesel prices Have introduced CAF (Currency Adjustment Factor) to counter fluctuations in currency

Entry of New Organized Players as Industry Matures Significant barriers to entry due to infrastructure bottlenecks like limitations of airside space, time slots, licensing and others

Availability of Skilled Front-Line Manpower Tie-up with multiple manpower recruitment agencies

Changes in Regulatory Environment: Postal Bill, Carriage by Road Act, 2007, Karnataka Stamp Duty Act and Kerala VAT Regulations Closely monitor the developments and adapt as necessary

Supply chain Logistics in Blue DartWith organizations moving towards close to perfect standards like Six Sigma, interaction with logistics suppliers has taken on a critical role moving up sometimes to the level of the CEO of the organization. Blue Dart Express Limited applied and found solutions to these critical demands much before other players could even recognize their need. Through its exceptional people processes, superior technology, and stress on quality systems over the last, almost two decades now, Blue Dart was quick to fulfill these needs. Blue Dart Express Limited applied and found solutions to these critical demands much before other players could even recognize their need. Through its exceptional people processes, superior technology, and stress on quality systems over the last, almost two decades now, Blue Dart was quick to fulfill these needs. Blue Dart offers the country's most comprehensive communications technology and customer software to support critical supply-chain distribution demands. The country's only express service provider with a dedicated fleet of five Boeing 737s ensures that packages are flown to their destinations overnight. These freighters offer capacity and volumes not available with any other carrier in the domestic air space. Retrieval of signed delivery records posed the industry's most intriguing problem. Blue Dart was quick to understand this requirement and put in place a 100% retrieval system. Blue Dart not only handles large volumes and oversize packages overnight - it also provides the industry with status of their shipments and retrieves such records as are necessary for billing. The entire cycle has been considerably shortened, enabling the industry to achieve healthy bottom lines.

CURRENT MODEL EXISTING WITH IN KARNATAKABlue Dart offers the country's most comprehensive communications technology and customer software to support critical supply-chain distribution demands. Blue dart mainly has two operations INBOUND OPERATION: The inbound operation starts with receiving the packages or the goods from theout bound station and comes in to HUB and in hub the Dart apex and the Dart surface are handled by the Blue Dart Aviation dept. Dart apex and the Dart surface are scanned and by the Blue Dart Aviation dept. Dart Apex is reaching directly to the specified destination any where in Karnataka through road ways or air ways and will reach the respective destination and gets delivered by the Blue Dart Aviation dept Dart surface is specifically through road ways and from hub it goes to the warehouses and then it routed according to the specified destination through vans or trains or by buses by the Blue Dart Aviation dept through out Karnataka Domestic Priority (DP) are handled by the Blue Dart express and Blue Dart Aviation dept will scan it (x-ray) and handle the shipment to Blue Dart express then the Blue Dart express will further scan each and every document (i.e. in scan and out scan) and then segregate it according to the route and are put in to the canvas bag according to the destination and through vans are delivered to the various service centers in Bangalore and to other parts of Karnataka. Thus the inbound operation in Blue Dart is carried out at the fast phase. Blue Dart Aviation dept will clear all the shipment with in 45 -50 min after the shipment is arrived and they load the shipments in to the service centers. Blue Dart express is responsible for the Domestic Priority (DP) and they in scan it and out scan it and then load it to the vans and sends to destination and again they in scan it and out scan it and delivery boys deliver the goods to the end customer thus the whole process is carried out in the inbound operations in the Blue Dart The following figures shows the model they follow in Karnataka for various operations

OUT BOUND OPERATION:

In the outbound operation starts with the carrier receiving the order and arrives at the shipper and than take the shipment to the respective service center. Than they will in scan the document and further they segregate the shipment and out scan the shipment, than load it to the hub. Again in the hub it is scanned (x-ray) and further loaded to the destination. Dart Apex is reaching directly picked up through road ways or air ways and will reach the hub and gets scanned, than to the respective destination and gets delivered by the Blue Dart Aviation dept Dart surface is specifically through road ways and from the pick up point, it directly goes to the warehouses and then it is transferred to the hub for the routing according to the specified destination through vans or trains or by buses by the Blue Dart Aviation dept throughout KarnatakaDomestic Priority (DP) are handled by the Blue Dart express .The Blue Dart express will first in scan the document and than out scan each and every document and then segregate it according to the route and are put in to the canvas bag according to the destination and through vans are delivered to the hub and then it is routed accordingly by specified destination. Thus the out bound operation happens to be in the evening and the shipment will be cleared by the night and shipped to the destination by various modes of transportation and thus will be delivered to the customer within one day in metros and two days to other parts of the Karnataka. Thus the operation is carried over night and they are quick enough to deliver to the customer with high speed.

INTERNATIONAL SERVICES: In international logistics systems, there is need to determine the best ports of loading and unloading, and the best border customs points. Another very important consideration in international logistics systems is that of optimal transfer prices. The logistics network must be designed in such a way that it takes maximum advantage of tax differentials and other national factors in arriving at the optimal structure. DHL is responsible for the International services has it has the strategic alliance with Blue Dart, the model is shown below:

Suggestions with respect to the existing model of Bluedart A change in the lifestyle of consumer and increase in competition generate issues like customer loyalty, pricing and quality of products and services offered taking prominence. Time taken to reach the destination in the Route is high for Bluedart as well as the number of delivery points for sharing of load should maximum. There is delay in the getting the materials and processing it from the pickup point to the hub to destination. Further it is identified that the major part of the time is delayed by the employees in getting the shipment from the pick point to the service centers and there is delay in entering the details of the customer because of the wired bar code scanner. Bar code scanner does not perform all the functions, and these data are feed manually The major findings in Blue Dart are pointed out as follows: Blue Dart has the efficient model with them but they are delayed due to the inefficient use of technology. Blue Dart is delayed in entering the data as they make use of the bar code scanner to scan each and every document. Blue Dart is scanning for two times one is in scan and the other is out scan which will take more time. Blue Dart is not much dedicated front end employees and they are not properly trained. Hub is too away from the service centers which in turn makes shipments to be delivered gets delayed. Blue Dart has lower number of service centers. Blue Dart have traditional logistics model and they should try to adopt new technology which gives them better result and increase efficiency in delivery. Blue Dart is delivering the shipments to metro cities within one day but to other parts of Karnataka they take two days to deliver the goods. Blue Dart is not focusing much on the late delivery Blue Dart have quiet efficient 3PL, over night transportation, next day delivery Blue Dart has created a good brand in the minds of the customer Blue Dart is utilizing all the 7 P's of services marketing mix to full extent Blue Dart provides taking orders over telephone, picking up packages at the shipper's location, tracking the shipments etcWhen we focus on the shipments from the hub to the service centers with auto scan there may be a chance of risk associated with it, it shows that its not a feasible option as the cost is concerned because of loading and unloading will be higher when there is a multi point delivery. But if there is an increase in demand to reach the destinations soon within Karnataka then Blue dart should shift to new Model where in shipments can be scanned directly and time is minimized and with less time it can reach the destination from Blue dart. It is feasible to directly scan the shipments from service centers and forward it to destinations instead of wasting time in entering the data and delaying. Provide comprehensive logistics and financial solutions Many companies have decided to outsource the part of their logistics to cut cost and to improve service. Blue dart should redesign and operate supply chains for major companies in the India They should focus on the technology and the management-based solutions for their Customers rather than the more traditional logistics More business- to-business (B2B) solutions Blue dart should continue to develop more e-business tools and provide more solutions to address customers need in the whole chain Creating Information Visibility Supply chain integration must be accomplished not only within one enterprise but also within those of its customers and employers (and often their customers' as well). Processes within all of these organizations must be evaluated and updated or even overhauled to meet efficiency and logistical expectations. Information visibility will help companies to include more dynamic, collaborative communication networks in their offerings, giving birth to collaborative commerce and helping to improve communication beyond the transactional supply chain. Use of Information Technology yields the following Prevents Inventory Buildup Customize the logistics according to customer segments need Service the customers according to their needs Provides fast delivery time Choice of transport Transport selection should follow the following steps Identify those factors affecting the choice transport selection Categorize the significant factors and identify potential risks Determine the distribution network in terms of number of service centers and the size Apply matrix analysis to select the most appropriate transport method Measure operational success Thus factors affecting the choice of transport selection are o Customer charteristics o Product charteristics o Environmental charteristics o Company charteristics Sharing Benefits Sharing benefits is an important success factor for many companies. Although there are a lot of challenges to the implementation, the gains to be realized with the supply chain outweigh the concerns and hence more and more organizations are moving towards automating their supply chain. The benefits should be equally shared within supply chain members; it is not good to sacrifice others benefit for gaining more, and this kind of relationship will not last long. Developing a framework for Integrated virtual logistics network for quick response which would factor in the existing processes, systems and organizations roles and the governments proposed investments in the e-commerce and e-governance infrastructure, and designing a technology transformation road map.Need for Integrated Logistics Model and ApplicationsMobile transaction processing capability coupled with a proper combined electronic business management model helps in integrating the manufacturers, transport service providers, financial institutions along with government agencies like regional transport department, central excise and customs, warehousing. Interviews with truck drivers/fleet operators reveal that the losses at check posts for larger trip lengths of more than 1500 km. constitute 30 to 35 percent of the total journey time. This could be reducedby 10 to 15 percent if the virtual logistics model is implemented by all the agencies in its totality.The approach for virtual logistics network is comprised of solutions, which are built on services, which are, in turn, comprised of competencies.Competencies:These are the building blocks that enable an organizations service offerings. Typically, a given competency plays a role in more than one service but, in some instances, a competency may also be a service in its own right.Services:Services are the market needs. These are the comprehensive capabilities that customers want and understand. Shipper includes third party logistics providers, freight forwarders, demand aggregators and any party who needs to ship goods. Carrier represents truck load carriers, less than truck load carriers, intercontinental carriers/ocean liners, small package carriers, cargo airlines, and rail.Virtual Logistics:This solution is intended for organization that is willing to have a third party manage their entire transportation, logistics and fulfillment needs. The primary customers for thisorganization are the ones who desire to focus on their core competencies and let the expert handle the rest.The virtual logistics network framework addresses services in the areas such as asset management, logistics productivity, global reach, inventory chain optimization, distribution management, reverse logistics, warehouse management, transport capacity matching, transport brokerage and real time interface with federal agencies for speedy document clearance. The brokers/agents could make use of this portal and in turn advice their clients i.e. individual truck owners/operators to increase the utilization of trucks at least in the return trips. In addition, if all the check posts are linked with concerned government agencies the delay could be considerably reduced. These processes in turn increase the productivity of the truck and enhance the profitability of operators.TechnologyThe system should make use of GPRS and GPS technology for wired and wireless communication between front and backend and for location tracking of delivery vans. The system should have wireless Bar Code scanner with front-end application and RFID integration with front-end application. The system should try to use the AUTO SCAN process. They should also provide SUPER TRACKER to increase efficiency and reduce time.Material Handling In the last several years materials handling has become a new, complex, rapidly evolving science. A huge range of new techniques, devices and machines has been introduced and different methods have been developed for handling different products. Any type of goods movement that is performed more than a few times per hour is worth mechanizing. Trolleys: Hand trolleys are relatively small and slow so they are really only efficient with small volumes over short distances. Motorized trolleys like tow trains, conveyor towed trolleys and automated guided vehicles can carry multiple unit loads over long distance with a relatively low labour costs. Various trolleys are: Manual trolleysRoll pallets Motorized trolleys Toe trains Driverless trolleys Forklift trucks The main advantage of this machine is that, as well as transporting material, they can load and unload other vehicles and lift pallet loads up high for storage. Major types of trucks are; Straddle truck , Reach truck Counter balanced truck Conveyors Conveyors excel at straightforward transportation because they eliminate rehandling before and after each function. These days they can also be loaded and unloaded automatically. They have the advantage of being able to take away a carton, a work tote or a unit load as it becomes available. No extra labour is needed. Conveyors of various types Belts, Rollers, Wheels, Chains.

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