Target: ₹1,410

CMP: ₹1,251

We recently visited TCI Express’ sorting centre in Pune. Spread over 1.5 lakh sq ft, the centre is fully automated and has about 50 loading docks. The management expects recovery in B2B volumes (annualised 12-15 per cent volume growth targeted) from H2-FY25, on the back of improvement in textile loads (South based).

The management is focusing on automation with the aim of: reducing dependency on labour, ensuring faster cooling time of trucks and reducing truck turnaround time (TAT).

Further, only two labourers are needed per truck, vs 5-6 earlier, for loading/unloading packages. Post automation of the Pune sorting centre, the overall labour cost has come down 30 per cent. Automation has brought down the loading/unloading time to one hour/truck from six-seven hours/truck, and the total TAT to four-five hours/truck. The Pune plant has a handling capacity of 60 kg/package, but to add a margin of safety, parcels weighing over 50 kg are handled manually; parcels weighing more than 50 kg form 5-10 per cent of the total volume.

To further improve efficiency, trucks are equipped with GPS and geofencing technologies, thus enabling real-time tracking. All trucks have two drivers, which helps in achieving average run per day per truck of 700 km.