VRL LOGISTICS LIMITED COMPANY

EXECUTIVE SUMMARY
The purpose of this internship is to study and understand the organization as whole and to
know how exactly the various departments function in an organization. It is also stimulates and
helps to understand the work environment better. The study assesses the performance of
organization and examines the changes in environment. It gives a picture about industry
structure, Players in the market, the industry volume and the current scenario of this industry
around the world and in India.
The project gives brief overview of the VRL Logistics Limited Company Organization profile
is important to divide departments so that work can divided into units and division. The various
departments of VRL Logistics Limited Company such as Human Resource, Finance, Research
& Development etc.
The study has a few good methodologies, to study different essentials of VRL Logistics
Limited Company such as SWOT ( Strength, Weakness, Opportunity, and Threats ). The
report provides an introduction to practices policy presenting an overview of this industry. The
first chapter of this report deals with organization profile background of the company, nature of
business and vision , mission, quality policy of the company, it also defines the various
function carried out by the departments in company. The third chapter is about McKinsey
framework is tool that analyze firm’s organizational design by looking at 7 key internal
elements : Strategy, Structure, System, Shared values, Style, Staff & Skills in order to identify
if they are effectively allinged and allow organization to achieve it’s objectives.
The fourth chapter is SWOT Analysis of company to check the organization and its
environment on the basis of strength, weakness, opportunities and threats of the company.
The fifth chapter is about analysis of financial statement of previous years to understand the
financial position of the company and it’s competencies of past years. And the final chapter
deals about learning experience which was gained from this one-month internship training in
VRL Logistics Limited Company.

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CHAPTER 01
INTRODUCTION ABOUT THE ORGANISATION AND INDUSTRY.

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1.1 Introduction of organization:

Founded in 1976 by Mr. Vijay Sankeshwar Gadag , a small town in North Karnataka with a
single truck and vision that was way ahead of its time. VRL soon expanded its service to
Bangalore, Hubli and Belgaum. From this humble beginning VRL has grown into a nationally
renowned logistics and transport company which is currently the largest fleet owner in India
with a fleet of 2691 Vehicles (including 196 hi-tech tourist buses and 2495 Trucks) as of 15 th
August 2008 published in the Limca Book of Records.
Over the year VRL has pioneered in providing a safe reliable delivery network in the field of
parcel service. It has spread its operations to Courier Service, Express Cargo & Aviation to
meet the growing demand of buregeoning customer base.
3PL & Warehousing solutions offered by VRL are tailor-made and cater to unique needs of
various customers of the industry. With the largest network in India, the VRL parcel service is
in dispensiable for the large number of corporate houses. This network spans the length and
breadth of country and is supported by large number of transshipment hubs. VRL operates
through a network of 2629 Locations and 911 Branches, franchisees and our valuable
customers. VRL is now expanding its service to reach even the remote locations of the country.
The efficiency of our fleet of vehicles hinges on our all inclusive state-of-the-art workshop cum
service complex at Hubli (Karnataka). Every vehicle of our fleet passes through this master
service facility so that they are at peak levels of performance, leading to better cost efficiencies
and time management.

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Established: 1976
Name of the organization: VRL Logistics LTD.
Date of incorporation: 31 march 1983
Owner: Vijay Sankeshwar
Location: NH 4 Bangalore Road near Varur, Hubli
Riggistration number: 5247
Company: LIMITED Company
Head office: Hubali
Employees: Above 5000 employees
Area covered by VRL: 43 acres
Brand Name: VRL
Class of company: public
Email: [email protected]
Website: https://www.vrlgroup.in

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CHAPTER – 02
COMPANY PROFILE

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2.1 History of Company

VRL Logistics Limited (formerly Vijayanand Roadlines Ltd.), commonly known as the VRL
Group, is an Indian conglomerate head quartered in Hubballi, Karnataka, India with operations
in around 23 states and 4union territories in the country. Business operations of VRL Group
include road transportation, logistics, publishing etc.VRL Group is one of the large logistics
and transport companies in India (incl.4360vehicles,[4] comprising 419 tourist buses and 3941
transport goods vehicles). Limca Book of Records, mentioned it as the single largest fleet
owner of commercial vehicles in the country's private sector.

 VRL Logistics Limited

Business Type Transportation And Logistics

Founded 1976, 47 years ago in Gadag

Karnataka, India

Founder Vijay Sankeshwar.

Headquarters Hubballi, Karnataka, India.

Area served India.

Key People Vijay Sankeshwar, Anand

Sankeshwar Chairman and
Managing Diretor.
Revenue ₹2,663 Crore ( US $330
Million) (2023)
Operating Income ₹ 401 Crore (US $50 Million)

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(2023)

Net Income ₹ 323 Crore ( US $40

Million) (2023)
Total Equity ₹ 976 Crore (US $120
Million) (2023)
Owner Vijay Sankeshwar

Website www.vrlgroup.in

GSTIN 29AABCV3609C1ZJ

Telephone No. 1800 599 7800

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 History
VRL Group was founded by Vijay Sankeshwar in 1976at Gadag, Karnataka,India. His family
had a publication house,which later became apart of VRL Group.

 Headquarters and offices

VRL is headquartered in Hubballi, Karnataka and has931 branches, 40 hub and transport yards
across the country. The headquarters has effluent treatment plant (capacity:175 thousand
liters),rainwater harvesting plant, petrol bunk(allotted by Indian Oil Operating income
Corporation), and a garage service complex,where VRL’s trucks passes through in the fleet,
once in every two weeks.

 Services

VRL Courier Services near Pampa Mahakavi

road, Chamrajpet, Bengaluru.

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 Cargo and Courier

A subsidiary of VRL Group, VRL General Cargo started its business service as transportation
between Hubballi and Gadag, and later has spread across Bengaluru and Belagavi. It has
extended into courier services and express cargo, which are now operative in23 states, handling
over 216 million cargos/year,[10] being one of the large networks in the country. Its courier
services are operative for parcels ranging from small to large size
 Travel
VRL's public tour business is operated by its division Vijayanand Travels. With having more
than 80 branches, and operated by1000+ agents, it is the largest in tour business services in
Karnataka and Maharashtra. It owns 1550 buses (incl. 742 Volvo buses of 9400XL and
9400PXmulti-axle models), covering six states, moving across 350 routes in the country.

 Aviation logistics
VRL Logistics Ltd. in 2008, started working in Indian Air Chartering Industry, operating under
the Indian Air Operator permit (for passenger charter). In the first phase of its business, it
owned a Beech craft Premier I, an aircraft, manufactured by Hawker Beech craft Inc, United
States, while in 2013 it purchased another. It offers Jet air craft charters to sectors like
corporate, leisure and tourism, special missions, event management, advertisement agencies
and for flights (VIPcategory).

 Media
VRL Group's flagship entity, Vijayavani was started on 1 April 2011, which is now the largest
circulated newspaper[12] in Karnataka. VRL Group's subsidiary company VRL Media Ltd.,
prints Vijayavani and is published in 9 cities of the state. Vijayavani’s lead editor of its edit
orial division is Chennegowder and Subhash hoogar. Karnataka's second largest circulated
newspaper Vijaya Karnataka, was started by Vijay Sankeshwar (of VRL Group) in October
2000, and was sold to the Times group on 16 June 2006. In April 2017, VRL Media Ltd.
Started Dighvijaya News 24x7, a Kannada television news channel

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2.2 Nature Of Business

VRL Logistics Limited operates as logistics and transport company in India and internationally.
It offers services for transportation of goods using a range of road transportation solutions,
including less than full truck load and provides courier services for the transportation of small
parcels and documents through the multi-model solutions.
Logistic Solutions : We move consignments of varying size and weight across the
Country
Courier Service : We offer courier service within state of Karanataka

Full Truckload Services : We provide FTL Service to our customers and provide door to door
FTL service.

 BUSINESS STATMENT
VRL Logistics Ltd is a leading logistics company that specializes in providing transportation
and logistics solutions. With strong focus on customer satisfaction, VRL Logistics strives to
deliver reliable and efficient service to meet the diverse needs of its clients.
The company’s commitment to excellence coupled its extensive network and advanced
technology, positions VRL Logistics as a trusted partner in the logistics industry.

2.3 VISION, MISSION & QUALITY POLICY

2.3.1 VISION:
To become the premier company that cuts across various segements and emerges as the
torchbearer of each segment that it ventures into.

2.3.2 MISSION :
a. To provide the highest quality service to our customers by continuously increasing
cost efficiency and maintain delivery deadlines.
b. To encourage our workforce to continuously strive for quality and excellence in
everything they do.

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c. To promote team work and create work environment that encourages talent and brings out
best in our employees.

2.3.3 QUALITY POLICY

We are committed to provide quality logistics services consistently at reasonable price and to
continually improve the same to achieve customers delight on a sustainable basis.

2.3.4 Organization Goal:

The customer satisfaction is the key factor in today’s market as “customer is the king”, hence
forecast and analyze the requirement of the customer is a must. The goal of the company is
below:
1 Quick and safe service.
2 Customer satisfaction and employee satisfaction.
3 Competitive price
4 Attain market leadership.

2.3.5 Company policy :

1 To give prompt and quick service.
2 To be co-operative with customers.
3 To diversity the business allowed.
4 To create employement.

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2.4 WORK FLOW MODEL

Order Placement

Order Processing

Resource Allocation

Transportation

Warehousing

Inventory Management

Delivery

custommer Feedbck

1. ORDER PLACEMENT :
Customers place orders for transportation or logistics services. Order placement is the process
of initiating a purchase order for goods or services in the procurement process. It typically
involves identifying the need for a product or service, sourcing potential suppliers, negotiating
terms and pricing, and issuing a purchase order to the selected supplier.

2. ORDER PROCESSING
VRL Logistics receives and processes the orders, verifying the details and requirements. Order
processing is fulfilling a customer’s request for goods or services. In order processing,
suppliers accept the orders, then deliver the products to customers. The suppliers receive and
verify the order, select the products or services, and ensure that they are delivered to the
customer promptly and accurately.

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3. RESOURCE ALLOCATION
The necessary resources such as vehicles, drivers and equipment are allocated based on order
specification. Resource allocation is the process of identifying all your available resources—
whether it’s labor or monetary—for a project and then strategically assigning them to tasks that
enable them to do their best work.

4. TRANSPORTATION
Goods are picked up from origin location and transported to the designated destination,
following most efficient routes. Transportation in a supply chain refers to the movement of
products from one location to another, which begins at the start of the supply chain as materials
make their way to the warehouse and continues all the way to the end user with the customer’s
order delivered at the doorstep.

5. WAREHOUSINNG
If required VRL Logistics may store the goods in their warehouses for temporary period.
Warehousing is the process of storing physical inventory for sale or distribution. Warehouses
are used by all different types of businesses that need to temporarily store products in bulk
before either shipping them to other locations or individually to end consumers.

6. INVENTORY MANAGEMENT
The inventory is tracked and managed to ensure accurate stock levels and efficient order
fulfillment. Inventory management, a critical element of the supply chain, is the tracking of
inventory from manufacturers to warehouses and from these facilities to a point of sale. The
goal of inventory management is to have the right products in the right place at the right time.

7. DELIVERY
The goods are delivered to costumers specified location, ensuring timely and secure delivery.
The process of delivering goods or services. Supply chain management is concerned with the
flow of materials and services, including delivery to the ultimate customer, as well as the
associated flows of money and information.

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8. CUSTOMER FEEDBACK
VRL Logistics values costumer feedback to continuously improve their services and address
any concerns.To achieve optimal performance, SCM requires constant feedback and evaluation
of the various aspects of the supply chain, such as demand, inventory, quality, delivery, costs,
and customer satisfaction. Feedback is the information that indicates how well the supply chain
is meeting its objectives and expectations.

2.5 PRODUCT / SERVICE PROFILE

1) VRL Express Cargo:
“Anywhere Anytime”
a. Delivery on time zero excuses. This mantra is driving force behind the success of VRL
Express Cargo.
b. Surface, Train and Cargo mode services.
c. Dedicated company owned vehicles
d. Door pick up and delivery.
e. On time delivery.
f. Online track and trace facility
g. 24*365 days operations
h. Dedicated and well groomed customer care windows.

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2. VRL COURIER SERVICE:

“On Time Every
Time”
Capitalising on the synergy of our transport network that connects all over Karnataka, we are
into Courier Services focusing on delivering documents and small parcels in a time
 Bound manner
 Strong & Dedicated Operating Team.
 Time Bound Delivery With An Emphasis “On Time Every Time”
 Delivery Schedules ranging From 24/48/72/96 hours.
 Dedicated Route Vehicles.
 Online Track and Trace Facility

3. Warehousing & 3PL Solutions:

“Tailor-Made Multi-Locational Service”
Seamless logistics solutions organization encompassing various components like s
upply chain management, inventory control management, warehousing management, JIT
movement with an emphasis on CRM.

a. Integrated 3pl solution.

b. Inventory Management.
c. Warehousing facility at various locations.

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d. Communication & IT service.

e. Intra-city & re-distribution services.
f. SKU management
g. Order management.
h. Vendor management.

4. Vijayanand Travels

“At the forefront of passenger Transport”

200Plus routes covering more than 50 destinations every day. Market leader in Karnataka in
private tourist operator segment. Are as of Operation : Karnataka & Maharastra states with 60-
plus branches and wide-spread network of 1000-plus agents. Vijayanand Travels is the
premier operator to extend service by hi-tech & sleeper coaches even to remote places.
 Onwards & return journey booking facility.
 Punctuality in timing and separate seating arrangement for ladies.
 Well-maintained coaches with latest seating arrangement.
 Double drivers on-board for safe & comfortable journey.
 Relief bus facility on all routes in case of any unforeseen incidents

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Vijayanand Travels, the tour operation division of VRL, is the market leader among tourist bus
operators in Karnataka and Maharastra. It operates a huge fleet of buses on more than200
routes and is supported by a network of 60 branches and 1000 agents. It has pioneered the
introduction of Hi-Tech buses on routes leading to remote parts of Karnataka, separate seating
arrangements for women on board, a choice of buses from ordinary buses to super luxury A/C
buses, check point to monitor vehicle movement, two drivers on the buses to prevent driver
fatigue on long routes and enhance passenger safety and E-ticketing facility too.

4. Online Ticket Booking

VRL Online Ticket booking is Secured Fast And easy way to reach your destination.Please
check your exact Bus schedule & Fare for your date/place of travel.Please refer to terms &
conditions for further details on bookings.The lowest price does not always mean the best deal.

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5. VRL Aviation :
From the team ac to the skies VRL has set off new journey. In primary phase, VRL has
acquired a brand new, Permier Jet 1A aircraft, manufactured by Hawker Beech craft
Corporation , USA. It will offer luxurious comfort and the freedom to fly at a whim. This
coupled with legendary VRL lineage, this venture will certainly touch the skies.

2.6 OWNERSHIP PATTERN:

VRL Logistics is one of the front runners in Indian Passenger Travel Industry amongst private
sector players.It is managed by following promoters.

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Board of Director

Name
Designation

Dr. Vijay Sankeshwar

Chairman & Managing Director

Dr. Anand Pandurangi

Independent director

Mr .shankarasa ladwa
Independent director

Mr. J S korlahalli
Independent director

Mr. C Karunakara Shetty

Independent director

Dr. prabhakara Kore

Independent director

Mrs. Medha Pawar

Independent director

Mr. Anand Sankeshwar

Managing Director

Mr. Raghottam Akamanachi

Non Executive Director

Mr. Ashok Shettar

Non Executive Director

Mr. K N Umesh
Whole time Director

Mr. L R Bhat
Whole time Director

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2.6.1 Organization Structure

CHAIRMAN

MANGING DIRECTOR

GM (MIS) GM (HRM) GM (MARKETTINGGM

) (FINANCE) GM (IT)

ASSISTANT ASSISTANT ASSISTANT ASSISTAN T

ROADLINES TRAVEL MPC

COURIER

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3.7 ACHIEVEMENT / AWARD

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2.8 THE FUTURE GROWTH

INDUSTRY STRUCTURE AND DEVELOPMENTS
The Logistics industry is crucial for the efficient movement of products and services across the
nation and in the global markets. The logistics business is highly fragmented and has
innumerable participants, including major local players, worldwide industry leaders, the
government postal service, and rising start-ups that focus on e-commerce delivery.

The industry includes transportation, warehousing, and value-added services like packaging,
labelling, and inventory management. With the advent of technology-driven solutions such as
transportation management systems (TMS) and warehouse management systems, India's
logistics industry has witnessed tremendous development in recent years (WMS). These
solutions have assisted logistics firms in increasing operational efficiency, lowering costs, and
improving customer service. (Source : India Brand Equity Foundation).Advancements in
digital technologies, changing consumer preferences due to e-commerce, government reforms,
and shift in service sourcing strategies are expected to lead the transformation of the Indian
logistics ecosystem. Digitalization will improve the efficiency and performance in freight
management and port operations. Warehouse automation will help achieve operational
efficiencies to counter supply-chain cost pressures in the industry. Increased investment in
infrastructure, last-mile connectivity, and emerging technologies are streamlining the logistics
landscape in India.

As per Summary of Economic survey 2022-23, issued by the Ministry of Finance, The Indian
economy is expected to grow over 7 per cent in the current financial year 2023-24. Strong
growth supported by government reforms, transportation sector development plans, growing
retail sales, and e-commerce sector are likely to be the key drivers of the logistics industry in
India.

Manufacturing in India holds the potential to contribute up to 25%–30% of the GDP by 2025
which will drive the growth of the transportation segment in India. As per India Brand Equity
Foundation report on Warehousing and logistics sector in India, The logistics sector represents
five percent of India’s Gross Domestic Product and is predicted to account for 14.4% of the

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GDP. Adding to the growth are the new policies that are set to give the industry a much-needed
push. Improving efficiency of the logistics sector is of high importance for the country’s
economy as it boosts economic growth, grows exports through global supply chains and
generates employment. Logistics are fundamental part of business infrastructure and one of the
key enablers in the global supply chain. The impetus given by the government to build the
infrastructure in the recent budget is the biggest positive for the logistics sector.

The Logistics sector in India currently employs 22 million people and serves as the backbone
for various businesses. The logistics sector in India was valued at US$ 250 billion in 2021, with
the market predicted to increase to an astounding US$ 380billion by 2025, at a healthy 10%-
12% year-on-year growth rate. Moreover, the government is planning to reduce the logistics
and supply chain cost in India from 13-14% to 10% of the GDP as per industry standards.

The logistics market in India is forecasted to grow at a CAGR of 10.5% between 2019 and
2025. It has been awarded infrastructure status which has made it easier for investment inflows
and has become a major growth driver of the logistics industry. Increasing investments and
trade points toward a healthy outlook for the Indian freight sector. Grant of infrastructure status
to logistics, the introduction of the E-Way Bill, E-Invoice and GST implementation are set to
streamline the logistics sector in India. Setting up of a logistics division under the Department
of Commerce, technology up grades, and development of dedicated freight corridors and
logistics parks are also major moves to upgrade the logistics landscape.

As per Ernst & Young report on ‘Envisioning the future of Indian logistics@2047, India’s
freight movement is heavily skewed toward road transportation, which moves 66% of cargo (in
ton-km). This is followed by rail (31%), shipping (3%) and air (1%).To aid this cargo
movement, India has an extensive network of support infrastructure comprising 129+ In-land
contain erdepots, 168+ container freight station, and ~300 mn. sq. ft. of warehousing space.
The sector handles ~10,000 commodities and employs ~22m people. It is one of the highly
fragmented sectors, with only 10% of the sector operated by organized players.

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 SOURCE
Ernst & Young, PBI, Ministry of shipping, Ministry of civil aviation, Niti Aayog VRL
Logistics Limited 68 40th Annual Report 2022-23.
This uneven distribution of modes of transportation has led to prompting the GOI to undertake
multiple logistics specificinitiatives, such as Gati-Shakti, National Logistics Policy and others.
These programs aim to streamline India’s logistics sector by making it more green, agile,
transparent and integrated. India aims to reduce logistics cost from 13% to 14% of GDP, to 8%
to 10% of GDP, by 2030.
GatiShakti is a critical component of this strategy, which aims to integrate planning and
implementation of infrastructure projects. As a result, programs such as Bharatmala, Dedicated
freight corridor and Sagarmala were developed. Several Multi Modal Logistics Parks (MMLPs)
are being developed to connect multiple modes of transport. The average speed of road
development has increased from 20.79 km/day in FY22 to 22.23 km/day till Jan-23.

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CHAPTER -03
McKINSEY’S 7S FRAMEWORK AND PORTER’S FIVE FORCE
MODEL WITH SPECIAL REFERENCE TO ORGANIZATION UNDER
STUDY

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 The McKinsey 7S Model refers to a tool that analyzes a company’s “organizational design.”
The goal of the model is to depict how effectiveness can be achieved in an organization
through the interactions of seven key elements – Structure, Strategy, Skill, System, Shared
Values, Style, and Staff.

The focus of the McKinsey 7s Model lies in the interconnectedness of the elements that are
categorized by “Soft Ss” and “Hard Ss” – implying that a domino effect exists when changing
one element in order to maintain an effective balance. Placing “Shared Values” as the “center”
reflects the crucial nature of the impact of changes in founder values on all other elements.

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 Structure of the McKinsey 7S Model

Structure, Strategy, and Systems collectively account for the “Hard Ss” elements, whereas the
remaining are considered “Soft Ss.”

1. Structure
Structure is the way in which a company is organized – the chain of command and
accountability relationships that form its organizational chart.

2. Strategy
Strategy refers to a well-curated business plan that allows the company to formulate a plan of
action to achieve a sustainable competitive advantage, reinforced by the company’s mission
and values.

3. Systems
Systems entail the business and technical infrastructure of the company that establishes
workflows and the chain of decision-making.

4. Skills
Skills form the capabilities and competencies of a company that enables its employees to
achieve its objectives.

5. Style
The attitude of senior employees in a company establishes a code of conduct through their
ways of interactions and symbolic decision-making, which forms the management style of its
leaders.

6. Staff
Staff involves talent management and all human resources related to company decisions, such
as training, recruiting, and rewards system.

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7. Shared Values
The mission, objectives, and values form the foundation of every organization and play an
important role in aligning all key elements to maintain an effective organizational
design."

2.1 Mckinsey 7S Framework to Analyze VRL Logistics Ltd

1. Strategy
VRL Logistics Ltd needs to build a balance between short run cost savings and protecting its
core competitive advantage. Customers perceive VRL Logistics Ltd products and services to
deliver ‘value for money’ proposition plus a bit extra. In its zest to gain more market share
through competing on prices, VRL Logistics Ltd should avoid cutting costs that can result in
inferior product and service delivery.
2. Structure
The pandemic has questioned the current structure and supply chain management of the
company. To be more resilient organization and prepare itself for future disruption of similar
magnitudes VRL Logistics Ltd should focus on – diversifying suppliers geographically so that
climate related, geopolitical, and other disruption. Reduce the dependence on China – As the
trade war between US and China is getting aggressive, it should reduce its dependence on
supply chain emerging out of China. This will help the organization to diversify risks, avoid
regulatory problems etc.To achieve the above two goals – VRL Logistics Ltd needs to fine tune
its organization structure. It needs to have smaller teams, easy reporting to the headquarters,
and enabling teams to take decisions based on real time developments
3. Systems
VRL Logistics Ltd needs to focus on the following areas – Improve internal processes, such as
risk management, Customer Relationship Management (CRM), web app optimization, and data
visualization across the organization.VRL Logistics Ltd needs to put in place robust system for
“work from home” employees so that there can be greater interaction among the employees
both online and in physical environment. It will not only improve productivity but also increase
the data security and cyber security.
4. Staff
Some of the steps VRL Logistics Ltd can take in to improve the human resources are –
Recruitment and remote onboarding – Because of the pandemic, a lot of employees are
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working from remote locations. To make the environment more inclusive for the new
employees, VRL Logistics Ltd should build system for remote onboarding such as – catalog of
short videos, small groups interaction, technical demonstrations.
Open chats for the people to approach people at various levels in the hierarchy. It will not only
help the top management to directly interact with the people below but also help in building an
open and transparent culture.
5. Skills
VRL Logistics Ltd can build a structured training and development program for people
working from remote locations.VRL Logistics Ltd can hire fresh talent as more and more
people are leaving their existing jobs because they are not challenging them enough.

6. Style / Leadership Style & Culture

The leadership styles required in the physical location and in remote scenario are completely
different. In a physical environment manager can stop by a chat, provide inputs and go through
the work. But in the remote locations employees have to work in far more isolated
environment. To improve the workflow – leaders should pursue collaborative and inclusive
form of leadership. Leaders should build smaller teams as part of larger team.

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2.2 PORTER’S FIVE FORCE MODEL:

The tool was created by Harvard Business School professor Michael Porter. Since its
publication in 1979, it has become one of the most popular and highly regarded business
strategy.

Porter Five Forces that Determine Trucking Industry Structure

The Porter Five Forces that determine the industry structure in Trucking are -

1. Threat of substitute products and services in Trucking sector –

If the threat of substitute is high then VRL Logistics Ltd has to either continuously invest into
R&D or it risks losing out to disruptors in the industry.

2. Threat of new entrants in Trucking industry –

If there is strong threat of new entrants in the Trucking industry then current players will be
willing to earn lower profits to reduce the threats from new players.

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3. Rivalry among existing players in Trucking industry –

If competition is intense then it becomes difficult for existing players such as VRL Logistics
Ltd to earn sustainable profits.

4. Bargaining power of suppliers in Trucking –

If suppliers have strong bargaining power then they will extract higher price from the VRL
Logistics Ltd. It will impact the potential of VRL Logistics Ltd to maintain above average
profits in Trucking industry.

5. Bargaining power of buyers of VRL Logistics Ltd and Transportation sector –

If the buyers have strong bargaining power then they usually tend to drive price down thus
limiting the potential of the VRL Logistics Ltd to earn sustainable profits

 Porter Five Forces importance for analysis of VRL Logistics Ltd

Managers can use Porter Five Forces model to analyze the competitiveness faced by VRL
Logistics Ltd in Trucking industry. Porter five forces analysis of VRL Logistics Ltd will help
in understanding and providing solution to – nature & level of competition, and how VRL
Logistics Ltd can cope with competition. Even though from outside various industries seem
extremely different but analyzed closely these five forces determines the drivers of profitability
in each industry. (Managers can use Porter Five Forces to understand key drivers of
profitability of VRL Logistics Ltd in Trucking industry.

a. Michael Porter’s 5-Forces Analysis

1. Barriers of Entry •
a Huge capital investment: The asset-intensive model requires a high amount of capital along
with the cost incurred during the replacement of assets. Moreover, depending on 3rd party
vehicles is always a less preferred solution as certain key benefits are lost.

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b. Government regulations: Buses and trucks require permits and approvals from both State and
Central Governments for smoother movement. Regulations often change which can make it
difficult for small truck operators to adapt and adhere to.

c. Land: Any company that is planning to set up facilities in major cities in the coming years
would require acres of land. The land is already expensive in these cities and companies need a
large piece of land in permissible limits. This can further increase the capital required.

2. Bargaining Power of Suppliers

a. Labour and Drivers: Transport and logistics business is highly dependent on labour and
drivers, who are well trained and are willing to travel over long distances. Also, they are prone
to accidents on-site or during travel, since not everyone is willing to work under such
conditions their bargaining power is high. Formation of trade unions can further strengthen the
power of labour especially in decisions related to compensation or wage hikes.

3. Bargaining Power of Buyers

a Less Competition: Goods Transport industry has very few players in the organized sector that
own a sufficiently large network that can cover long distances and achieve economies of scale.
Further, very few players have the capability to carry various types of commodities in terms of
vehicle design. Since only large players can provide better service at a competitive price, it
weakens the power of the customers in the goods transport business.

b. Online Ticketing: Bus operations division has significant competition due to the presence of a
large number of state-run operators and private players. Due to increased usage of online
booking websites allowing comparison between service providers, buyers tend to have a higher
bargaining power

4. Rivalry among Competitors

a. Fragmented Market: The market is fragmented with a large number of players in the
unorganized sector making it difficult to achieve leadership in all locations or routes. About
70% of the players own less than 5 trucks. Moreover, small players can easily dominate local
markets.

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b. Start-ups: Most start-ups are set to capture the market share using an aggressive pricing
strategy even at the expense of profitability. However, large players have an advantage due to
their network and diverse customer base spread across different locations and industries.

c. New Entrants: Indigo a low-cost air travel provider has increased the frequency of its charter
air service from June 2020 which was earlier restricted to very few trips a month this can
drastically increase competition in the industry. Because for Indigo, Air Travel is the primary
focus.

5. Threat from Substitutes

a. Railways: Even though railways are a cheaper mode of goods transport with a lower cost per
tonne due to low fuel consumption and also time saving, roadways are preferred as they have
better connectivity even to the remotest places and can travel over any terrain.

b. Flexibility: For passenger travel, availing tickets in trains require advance booking, and even
though air travel tickets can be booked at the end moment they are too expensive. Buses tend to
solve both these issues; they don’t require advance booking and are comparatively cheaper.
However, since buses are suitable for short distance travel only both railways (cost-saving) and
airways (time-saving) still pose a significant threat for the roadways.

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CHAPTER-04
SWOT Analysis

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SWOT Analysis

1.Strengths:

 Investors with long term vision dictates VRL logistics shareholdings

 There is study increase in the growth of their turnover.
 They provide goods service that leads to customer satisfaction
 The company is recommended by Indian books association Mumbai
 The company is having wide network of branches spread all over Karnataka, Andhra
Pradesh, Madhya Pradesh, Maharashtra and new Delhi.
 They have entered into tourist transport operations
 They luxury bus service have been extended to Banglore, Mumbai, Bagalkot and Mangalore and rest
other part of Karnataka
 They have their own in house body building of vehicles

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2.Weakness :

 Very limited staff

 Dependent on economic scenario
 Less commission structure
 Low advertisements as compared to competitors
 Bureaucracy
 There is a heavy work load

3.Opportunities:

 They can extent their service to north and south stations

 They can enter into international courier and cargo express service
 They can tie-up the government transport agencies
 Provide employment opportunity
 Private domestic air services
 Extending the service

4.Threats:

 Competitors can compete for market leadership

 Economic slowdown
 New technology
 Government regulations
 Competitors higher commission rates

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CHAPTER-05
ANALYSIS OF FINANCIAL STATMENT

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1. BALANCESHEET OF VRL

Particulars 2023 2022 2021

March(cr)
March[cr] March[cr]

Equity’s & liabilities

Shareholders fund

Equity share capital

88.34 88.34 88.34

Reserves and surplus 887.50 563.29 508.80

Total shareholders fund

975.84 651.63 597.14

Non-Current Liabilities

Long term 107.32 81.40 39.48

Borrowings

Deferred Tax 46.12 44.01

38.62

Other long term liabilities

428.20 314.36 238.69

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28.09 29.10 20.70

Long term provisions

463.48 342.87
Total non-current 607.73
liabilities
Current liabilities

Short term
71.78 62.08 64.23
barrowing

Trade payables 14.21 20.06 13.55

Other current
204.94 168.83 168.28
Liabilities

Short term
15.23 14.20 12.50
provisions
Total current
306.15 265.18 258.57
Liabilities
Total capital
1,891.73 1,380.28 1,198.58
&liabilities
ASSETS

Non-currentassets

Tangible assets
1,481.17 1,096.70 951.33

Intangible assets
0.17 0.40 0.64

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Work in progress 38.37 34.98 6.08

Other assets 0.87 0.89 2.39

Fixed assets 1520.58 1,132.97 960.43

Non current investment 0.05 0.05 0.05

Deferred tax asset 0.00 0.00 0.00

Long term loan 0.00 0.00 0.00

Other current asset 92.23 76.18 61.89

Total non current asset 1,612.86 1,209.20 1,022.37

Current assets

Current investment 15.02 0.00 0.00

Inventories 52.79 45.86 39.51

Trade receivables 81.69 67.26 63.94

Cash and cash equivalents 75.24 14.49 18.45

Short term loan 0.00 0.00 0.00

Other current assets 54.12 43.48 54.31

Total assets 1,891.73 1,380.28 1,198.58

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 RATIO ANALYSIS:
Ratio Analysis can be defined as the study and interpretation of relationship between
various financial variables, by investors or lenders. It is a quantitative investment
technique used for comparing a company’s financial performance to the marketing
general. It helps to identify areas where the management needs to change.
Financial ratio analysis is the calculation and comparison of ratios which are derived
from the information in a company’s financial statements. Financial ratios are
calculated from one or more pieces of information from a company’s financial
statements.
Classification of Ratio: Ratio can be classified into different categories depending
upon the basis of classification. The traditional classification has been on the basis of
the financial statement to which the determinants of a ratio belong. On the basis the
ratio could be classified as,
 Profit and loss account Rate
 Balance sheet Ratio
 Composite Ratio
However the above basis of classification has been found to be crude and unsuitable
because analysis of balance sheet and income statement cannot be done in isolation.
They have to be studied together in order to determine the profitability and solvency
of the business. They are now classified as:
1. Financial ratio:
a) Liquidity ratio
 Current ratio
 Quick ratio
 Absolute liquidity ratio
 Working capital ratio
b) Capital structure ratio
 Debt ratio
 Debt equity ratio
 Proprietary ratio
 Interest coverage ratio
2. Turnover ratio:

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 Inventory turnover ratio

 Debtor turnover ratio
 Creditor turnover ratio
 Asset turnover ratio
Net sales.
Net asset turnover ratio = -------------------------
NetAsset
Year Net Sales Net assets Turnover Ratio
2018-19 64202.81 58304.54 1.10
2019-20 70598.93 55016.45 1.28
2020-21 88196.68 62054.14 1.42
2021-22 112112.34 57550.08 1.95

Net turn over

1.25

1.2

1.15

1.1
netturnoverratio

1.05

0.95
2018-19 2019-20 2020-21 2021-22

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 Interpretation:
The trend is showing increment i.e. net asset turnover ratio in 2021-22 is 1.92 times
comparing to 1.42 time in 2020-21. Therefore it indicates that the company producing
1.95 time of sales for one rupee of capital employed in net assets.

2. Total asset turn over ratio:

This ratio shows the firm’s ability in generating sales fromall financial resources
committed to total assets
Total asset turnover= (Sales)/( Total assets)

( Total assets include net fixed assets and current assets)

Year Sales Total assets Total assets turnover

2018-19 64202.81 61690.53 1.04
2019-20 70598.93 64319 1.15
2020-21 88196.68 72906.42 1.20
2021-22 112112.34 92858.43 1.21

Total asset turnover ratio

1.25

1.2

1.15

1.1 Total asset turnover ratio

1.05

0.95
2018-19 2019-20 2020-21 2021-22

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(Tot l assets include net fixed assets and current asset)

Interpretation:
The total assets ratio is increasingi.e.from1.20&1.21intheyear 20-21&21-22
respectively.The higher ratio indicates that the assets are utilized properly by the
company

3. Fixed asset turnover ratio=(Sales) /(Net fixed

assets) (Amount in lakhs)
Year Sales Netfixed Fixedassettur
assets nover ratio

2018-19 64202.81 49130.56 1.30

2019-20 70598.93 47094.16 1.49

2020-21 88196.68 51153.37 1.72

2021-22 112112.3 69457.18 1.61

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Fixed asset turnover ratio

2

1.8

1.6

1.4

1.2
Fixed asset turnover ratio
10.8

0.6

0.4

0.2

0 2018-19 2019-20 2020-21 2021-22

Interpretation: The ratio for 2021-22 reveals 1.61 of net fixed assets to sales, compare to 2020-21 &2019-20,
therefore the trend indicates the assets are used not so efficiently in the year 2021-22

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CHAPTER-06
LEARNING EXPERIENCE

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 LEARNING EXPERIENCE:
An organization study at ,VRL Logistics Limited Company Organization, has enabled me
to understand the organization structure of the corporate world to an extent and the ways
means how functions. As VRL Logistics Limited Company Organization is one of the
leading industry in travel sector. This organization has large investment and a good
number of people working in it. Here, is a well established organized structure with top
level management, middle level management, and bottom level management.
The business familiarization program helped me to extend knowledge in management field.
Above all, the most important thing was I have got real world to some extent, all of those
wouldn’t have been possible without the support, guidance, motivation and inspiration from
the supervisors, and other senior staffs of the organization. So, heartfelt thanks to all the
members of the organization, for helping me to know about the organization.

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 Conclusion:

VRL logistics limited is offering high quality service for customers. VRL logistics
ltd’s experience in service market through which the company can offer the best
service to the customer. The company has made sincere efforts to achieve its goals
and objectives over the years. It has good service record and has good market
potential and image.

VRL logistics ltd is building long lasting relationships with its customers. Every
member of VRL LOGISTICS LTD is motivated to perform and deliver to the fullest
of their ability by constantly upgrading the skillset off employees to suit long-term
goals.Through this the company expects to come out with highly competitive and
technologically advanced service and solutions.

As the global scenario is changing and due to globalization and liberalization the
business environment also went into sea change, so the logistics plays an important
role in today’s business environment. As it is the part supply chain management it is
crucial in every business organisation..So the company should take the advantage of
changing business environment as logisticsis called lifeline of any business

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 BIBILOGRAPHY
www.vrllogistics.com
ww.vrlgroup.in
www.investopedia.com
google.com
Wikipedia.com
Scribd.com

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