Total Transport is listed in NSE Emerge SME platform. Total Transport Systems came with an IPO on July 25, 2017. It offered 3.78 million shares at fixed price of Rs 45 per share of face value of Rs 10 each. Their core business is - Less than a container load (LCL) and cargo consolidation. Most
of the shipping carriers carry their loads on containers, which needs to be full for maximum
efficiency. For export and import (Exim) players who don’t require a big full container, LCL logistics companies provide the best and most cost efficient solution.
Total Transport offers this together with freight forwarding that includes arranging all pre-
shipment activities like export inspection, excise inspection, container survey, cargo pickup
and Cargo Stuffing. Moreover, they offer consolidation for exports and deconsolidation for
imports.
It was incorporated in 1995 by Mr. Makarand Pradhan Prabhakar, Mr. Sanjiv Arvind Potnis
and Late Mr. Prashant Ramkrishna Salvi.
The core business services are provided to customers in two ways:
- Booking – The customer books his cargo through us but transportation, custom
clearance etc provided by his designated CHA or custom Broker. They receive the
cargo, consolidate it in container and ship it to destination. - Complete Logistics Solutions – The customer books his cargo and all services
including transportation, custom clearance, consolidation, forwarding etc is done by
them till the point of destination.
Core Business Operations is divided into four parts: - Sea Freight Forwarding
- Consolidation & Deconsolidation of cargo
- Air Freight Logistic
- Warehousing& Transportation
They have branches located in various cities in India like C.B.D. Belapur, Pune, Ahmedabad,
Vadodara, Kolkata, Chennai, Tuticorin, Bengaluru, Kochi and Gandhidham.
They have tie-ups with various shipping lineslike Maersk, MSC, NYK, Hapag Lloyd, Hyundai,
CMA –CGM, Cosco etc.to move their consolidated cargo on time. They are also members
of FIATA i.e. International Federation of Freight Forwarding Association, Bombay Overseas
Freight Brokers Association and Federation of Freight Forwarder’s Associations in India,
Consolidators Association of India and AMTOI. They have also established a wholly owned
subsidiary in Nepal through a joint venture.
Now what makes it a big emerging story-
In last few years, they have entered into two fast growing businesses of B2B E-Commerce
and Last Mile Delivery for big boys of B2C e-commerce players in India.
They have entered in a JV with a big conglomerate to develop and sell the global supply chain product for the Indian market and also to develop, handle, sell and manage the global brand name “SEEDER”
locally in India.
Seedeer is a global supply chain platform built by Eurasia Group.
Founded in 1982, Eurasia Group is currently headquartered in Shanghai with a total
of 2,000 employees and a storage area of 405,000 square meters. With 74 branches
in 34 countries and regions around the world, and nearly 40 years of accumulation, it has
built a comprehensive online and offline networks around the world.
With 35- year of experience as a leading global service provider, Seedeer has resources in
Air Freight, Sea Freight, Warehousing and E-Commerce which offers buyers and vendors
overseas warehousing, international direct lines, transfer shipment and FBA first miles.
Seedeer has successfully done API connection with global supply chain platforms such as
Amazon, eBay, AliExpress, Mercado Libre etc.
Seedeer in India -
Seedeer has not developed any B2B E-commerce website in any country where it is
present, not even in China. It has been working with big e-commerce players worldwide.
Looking at the potential of Indian market, Seedeer has plans to launch its own dedicated
B2B commercial website which will help Indian customers to directly source the material
from China and other countries worldwide.
Web URL for portal in prelaunch:
A company which has clocked 5800Cr topline in China is not coming to India to do a business of 100-500Cr. Launching a full fledge B2B e-Commerce
platform having more than 30 Lacs products is not an outcome of short term thinking.
This platform is the first platform of its own kind in India which will empower Indian customer to arrange doorstep delivery of 30 Lacs Products from worldwide locations without getting involved in custom clearances and duties etc.
‘Last mile delivery’ in ecommerce parlance refers to the last leg of a shipment’s movement
before it reaches consignee’s address or the final destination. The ‘last mile’ for an ecommerce company is ‘the moment that matters’. This last phase of delivery is referred to as the ‘lock in’ period for the customer. For an ecommerce company appointing a logistics unit is indeed a difficult task. In fact, appointing a logistics unit implies outsourcing of deliveries. Here two factors are involved, safety and punctuality. Though Retail Company takes the responsibility of packing material, the safety of the item during transit lies entirely with the logistics company. Further, the
possibility of delayed or wrong deliveries cannot be ruled out. These are few factors which forces an e-commerce company to choose the last mile
delivery partner extremely carefully. The relations once built between e-commerce Company and last mile delivery partner, last for long time.
One World Logistics, which is the subsidiary company of total transport has built such
rapport with Amazon. They are getting repeated business from both big boy of B2C E-Commerce player in India.
Why Last Mile Delivery Business may prove to be a game changer?
Competitive Advantage
- E-Commerce companies select the last mile delivery partner after performing a lot
of quality checks. The business transactions with Amazon and Flipkart itself proves
that new World Logistics is not the new kid on the block - Setting up last mile logistics network is not an easy task. It takes years to establish
the channels and establish the image. - The last mile delivery network is largely dependent on the technology platform app
which is used by the delivery agents. One World Logistics has successfully built the
technical platform to perform the seamless business for big ecommerce players in
India.
Huge Valuation Gap between OneWorld and its Peers -
Rivigo is valued at approx. 8500Cr in the latest funding round. In FY 19, revenue for the
company grew by 42 percent to Rs 1,028 crore, even as its losses doubled to Rs 600 crore.
Rivigo does approx. 1 Crore last mile delivery per month. One World Logistics is all set to
to 10 Lacs delivery in by June-July this year. Though it is not possible to do apple to apple comparison of One World Logistics with Rivigo network, but giving 50% weightage to last mile delivery business in Rivigo and calculating on business volumes of OneWorld (which is 1/10th of Rivigo), the valuation of One World alone comes around 450Cr. Even after giving 50% discount on this assuming Rivigo is a big name as compared to OneWorld, the valuation of One World comes out to be 250cr which is still ~4 times bigger than current market cap of Total transport.
Possibility of buyout by Amazon -
Amazon has been consolidating its logistics landscape and been buying the assets in USA.
In 2019, Amazon has been making investments in potential solutions for last-mile delivery,
as well as expanding its Prime Air network, buying more planes and developing its airport
hubs.
Amazon has made several investments in last-mile delivery recently.
- It started testing Scout, a robot about the size of a cooler, to deliver packages
autonomously in a suburb north of Seattle. - It participated in a venture capital round to fund Aurora Innovation, an
autonomous-vehicle company. - It’s also in talks to invest in Rivian, an electric-vehicle company.
Listing of One World -
If Total Transport promoter may want to list One World Logistics as a separate entity after
3-4 years. That will unlock huge value for investors.
I strongly believe that the One World Logistics may be valued at a hefty valuations whenever they need funding to expand their tech platform. A similar level of funding which happened in Rivigo is possible.
There will be huge value unlocking if amazon buys out whole business of One World Logistics OR if it gets listed as separate entity.
Total Transport company has approved migration to mainboard and has filed an application with SEBI. I am continuously in contact with Company Secretary Bhavik Trivedi through email. Any update I get will post here.
Cons : Corona has caused temporary delay in the all good factors and also affected its business as it in logistics sector.
Me and my friends have done above research on this company. This is not solely my research. It’s a combined effort.
Views invited.!!
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