Mobile Technology is Driving Innovation in FMS sector: InfoTrack
“With the use of mobile apps and advanced hardware, it is possible for the sector to achieve efficiency, accuracy and affordability. The incorporation of new technologies is good for the industry,” says C K Ramakant, Managing Director, InfoTrack Telematics in conversation with Mohd Ujaley
What is your view of the logistics industries and the fleet management solution (FMS) segment?
During the last 15 years, there has been a surge of growth in this segment. Last year, the market grew by 28% and going forward, it is expected to grow by 30-32% annually. The growth that we are witnessing is primarily due to the rise in the e-commerce sector. Today there is more awareness about logistics and fleet management, and there is a focus on doing things in a more organised way.
What are the key verticals that are driving the demand for FMS in India?
Demand is coming from almost all the sectors. But, as I said earlier, it is the boom in the e-commerce sector that is playing a key role in streamlining the supply chain management. Also, from logistic point of view, we have few companies that have changed the way taxi business is conducted in India. Primarily, for logistic and transportation, the major demand is coming from public transport companies, employee transport segment, school bus transportation, public transportation like taxis, autos, etc., car rentals and tours and travels, logistics and supply chain.
Have you done any Proof of Concept (PoC) with the eCommerce giants?
We are working with some of the largest ecommerce companies in the country; we have done the PoC and we are likely to roll-out the services very soon. Broadly speaking, transportation and fleet management is still disorganised. We don’t have enough focus on quality as there are lot of companies, which are family owned—they don’t use technology, in the way it should be used. But the good thing is that now this is changing as taxi companies are giving lot of competition to them. Also, the supply chain management is witnessing a huge flow of funds and majority of these are coming with the cap that how you differentiate yourself from others. In totality, this is good for the industry. We, at InfoTrack, are geared to provide the complete set of end to end solution across verticals to our clients. We are focusing on adding value to the eCommerce market by providing solution to improve the supply chain segment. We have clients, who we are helping to improve their last mile delivery (Door-to-Door delivery) and also long haul supply chain (Cityto- City transport).
What new technologies are being implemented in this sector?
The main technology that is driving the innovation in this sector is mobility. The mobile technologies lead to improvement in accuracy and affordability. With the use of mobile apps and advanced hardware, it is possible for the sector to achieve efficiency, accuracy and affordability. The incorporation of new technologies is good for the industry.
With the use of technologies, can we expect more competition in terms of pricing?
The companies in this sector run on very thin margins. Their profits are dependent on efficiency in their operation and optimisation methodologies. With the use of modern technologies, they can achieve profit even when they price their services low. A technology oriented transportation is the way forward.
What are your plans for expansion in India?
We have been in the industry for over 14 years. We started our operations in Singapore. The India operations started in 2008 and we have seen huge growth and interest in the last 24 months. InforTrack has grown by 100 percent in terms of employees and we are expecting a 50% revenue growth year-on-year for the next three years. Our paid up capital has increased manifold in recent years. We have moved from 14 people to 200 people in last 3 years and we expect to become much bigger in time to come.
