How to start a GATI logistics franchise in India in 2024?

on Jan 15, 2024 | 4053 views

Written By: Yukta Palekar

Gati Business, an Indian multinational courier delivery service company, is known for its transparency and trust-building practices. It is the first to print delivery dates on parcels and use POD abbreviations for payment on delivery. Gati offers a wide range of supply chain and distribution services in China, Hong Kong, Singapore, Thailand, and Nepal, and is expanding its operations across the APAC region.

Gati logistics franchise Overview

  • Network Coverage: Over 19,800 PIN Codes covered. Network spans across 735 districts.
  • Promoter and Shareholder: Allcargo Logistics is the promoter and single largest shareholder of Gati.
  • Allcargo Logistics Services: Offers end-to-end integrated logistics services. Diverse verticals include International Supply Chain, CFS-ICD, Contract Logistics, and Logistics Parks.
  • Digital-First Approach: Digital payment modes. Enterprise-wide ERP systems. Gati Genie chatbot on WhatsApp.
  • Customer Focus: Aims to delight customers. Focus on enabling swift, safe, and timely deliveries.
  • Corporate Responsibility: Core value of 'Care for Environment and Society.
  • Vision and Mission: Vision: Serve stakeholders for market leadership. Mission: Create digitally-enabled, well-governed logistics magic worldwide.
  • Core Values: Entrepreneurial mindset. Customer centricity. Innovation and execution. Collaboration. Care for the environment and society.
  • Environmental Stewardship: Strives to minimize environmental impact. Supports scientific research.
  • Social Responsibility: Cultivates a culture of empathy towards colleagues and underprivileged individuals
  • Global Contribution: Aims to contribute to a better society, country, and world at large.

Gati is a Hyderabad-based public logistics and supply chain management company offering services like express distribution, cold chain, warehouse solutions, fulfilment, freight forwarding, trading solutions, and e-commerce logistics.

With a strong presence in APAC regions, Gati caters to various Indian consumer niches and offers high profit margins. The company targets commercial offices, government offices, institutions, students, and entrepreneurs. Gati's marketing strategy includes partnering with Indian airlines and expanding its presence in the European market.

The Advantages of Starting a Gati Franchise

Starting a Gati franchise offers several benefits, including gaining brand recognition and a global presence in India, Asia, and Europe. With Gati's established reputation and loyal customers, franchise owners can enjoy the demand from their loyal customers.

The company's established supply chain, cold chain, distribution, warehouses, and logistic solutions make franchise operations limited and easy. Additionally, the high profit margin offered by this franchise opportunity is reasonable with an accurate rate of return.

Overall, Gati franchises provide a unique opportunity to cater to foreign demand and expand your reach.

Why should you go with Gati Courier Franchise?

Choose Gati Courier Franchise for end-to-end services like freight forwarding, road movement, and warehousing. With over 4500 experienced professionals, dedicated call centres, and a strong customer base, becoming a Gati Channel Partner offers benefits like support, exclusive incentive schemes, automatic commission payments, and multi-modal transport services.

Facility Provided by the GATI logistics franchise

Gati Courier offers various services, including express distribution, cold chain, warehouse solutions, fulfilment, freight forwarding, and trading solutions. Express distribution provides flexibility for businesses, while cold chain services offer a range of options.

Warehouse solutions offer storage solutions, while fulfilment services cater to urgent medical needs or national emergencies. Air freight services are used for quick shipments, while trading solutions focus on e-commerce logistics, where individuals or firms can buy and sell goods and services online and have them delivered to the buyer's location.

Eligibility Criteria for Gati logistics franchise

  • Logistics Solutions: Offers end-to-end supply chain solutions; Specializes in B2B, B2C, and 3rd party logistics.
  • Qualification and Experience: Minimum qualification: 10th and 12th pass; Minimum age requirement: 21 years; Experience in courier service business preferred.
  • Franchise Costs: Vary based on the number of pin codes; Initial security deposit: Rs 1 lakh to 2 lakhs.
  • Infrastructure Requirements: Office and godown space (500-1500 sq. ft); Infrastructure costs; Equipment and vehicles; Pick-up facility; AC facility; CCTV feature.
  • Labor Requirements: ID proof (Aadhaar Card, PAN Card, Voter Card); Address proof (Electricity Bill/Ration Card); Photographs; Email ID and phone number; Bank account details of the firm; Cancellation cheque; Shop and property documents (sale deed, standard franchise rental agreement); Employee's personal details; GST Number, registration number, and financial documents.
  • Franchise Fees and Investment Options: Franchise fees: Rs. 5 lakhs; City-level stores: Investment of Rs. 2 to 5 lakhs; State stores: Investment of Rs. 6 to 10 lakhs; City stores: Investment of Rs. 10 to 20.5 lakhs; Country stores: Investment of Rs. 30.5 to 50 lakhs.
  • Profitability and Entrepreneurship: Profitable franchise model, over 80% of franchisees are first-time entrepreneurs, Gati is among the top 100 corporate brands in India.
  • Financial Metrics: Profit margin: Approximately 35%; Payback period: 2 to 3 years.
  • Network Growth: Network expanding at a rate of three franchisees a day
  • Overall Rewarding Opportunity: Gati Courier Franchise is not only profitable but also rewarding. Positioned as a leading logistics service provider in India.

How to apply for the Gati logistics franchise?

To apply for a Gati logistics franchise, follow these steps: visit the Gati Authority site and complete the franchise application form. Alternatively, contact the Gati franchise through their email and contact number and search for the system.

Ensure there are no other Gati courier franchises available in your location before applying. The company will respond within a week. Once in touch with the zonal manager, they will guide you in setting up the franchise and train you on managing and running it.

Gati logistics business revenue

Gati reported a 10.34% YoY increase in March 2023 net sales to Rs 415.67 crore, up from Rs 376.73 crore in March 2022. The company's quarterly net loss increased to Rs 16.00 crore, while EBITDA increased to Rs 18.27 crore, up from Rs 13.45 crore in March 2022.

Gati shares closed at 118.45 on May 19, 2023, with a return of -27.55% over the last 6 months and -15.96% over the last 12 months.

India's logistics market size

Gati reported a 10.34% YoY increase in March 2023 net sales to Rs 415.67 crore, up from Rs 376.73 crore in March 2022. The company's quarterly net loss increased to Rs 16.00 crore, while EBITDA increased to Rs 18.27 crore, up from Rs 13.45 crore in March 2022.

Gati shares closed at 118.45 on May 19, 2023, with a return of -27.55% over the last 6 months and -15.96% over the last 12 months.

Steps to Start a logistics franchise

  • Business Plan Development: Define courier fleet requirements, determine necessary insurance coverage amounts.
  • Establishing Central Warehouse and Depot: Choose a strategic central warehouse location, set up a reliable delivery depot for parcel receiving and dispatch, Contribute to local employment opportunities.
  • Acquiring Equipment and Materials: Obtain all necessary equipment for efficient operations, Ensure a sufficient stock of packaging materials
  • Employee Training: Prioritize training programs, especially for drivers, Enhance skills in parcel handling, customer interaction, and safe driving practices.
  • Marketing Plan Creation and Implementation: Develop a comprehensive marketing plan; Establish a strong online presence through: Website creation, Active engagement on social media channels, Building and leveraging an email marketing list, offering discounts to attract and retain customers.
  • Digital Marketing Management: Regularly update and manage online channels, stay active on social media platforms, Utilize email marketing for customer communication.
  • Business Understanding and Financing: Gain insights into business performance through digital channels, Use gathered data for informed decision-making, Secure financing based on business needs and growth plans.
  • Investment in Equipment and Employee Training: Allocate resources for equipment maintenance and upgrades, continuously invest in employee training, particularly for drivers, Continuous Improvement: Implement a culture of continuous improvement, regularly assess, and enhance operational efficiency and customer satisfaction.
  • Safety and Compliance: Prioritize safety protocols for both employees and parcels, Ensure compliance with industry regulations and standards.

Conclusion

Gati offers a franchise opportunity with expansion in Asian and European markets, reasonable profit margins, and a reasonable pay period. Their assistance in franchise establishment and management ensures limited and simple operations.

FranchiseBazar provides top logistics franchise opportunities in India, catering to the growing demand for shifting houses, offices, and parcels.

FAQs

Q.1. Is it advantageous to own a Gati Courier Franchise?

Before we claim it is lucrative, consider this: before to COVID, there were not many internet orders. However, following the COVID, many consumers switched to internet purchasing, which boosted the number of shipments delivered every day. As a result, in the next years, everything will be online. As a result, this company's prospects are bright. As a result, it is a profitable business.

Q.2. How to Apply for a Gati Courier Franchise?

To apply for a Gati Courier Franchise, go here and fill out the franchise form. After you submit the form, a business executive will contact you within a week if they need a franchise partner in your region.

Q.3. Is there a security deposit?

Ans: Yes, you must pay a security deposit to begin your Gati Courier Franchise, which varies depending on your area and the franchise type you pick.

Disclaimer: The brands mentioned in this blog are the recommendations provided by the author. FranchiseBAZAR does not claim to work with these brands / represent them / or are associated with them in any manner. Investors and prospective franchisees are to do their own due diligence before investing in any franchise business at their own risk and discretion. FranchiseBAZAR or its Directors disclaim any liability or risks arising out of any transactions that may take place due to the information provided in this blog.

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