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Our Bureau

Bangalore, June 19 The spiralling petrol price should not deter the business unduly as no softening would be significant enough to bring immediate relief to the business. The industry needs to take a realistic view and adjust its business structure to cushion the fuel price phenomenon.

With predictions of the crude oil price reaching the $200-a-barrel mark or more, the express distribution business should prepare itself to see whether it could run it on a sustainable basis.

Though in the short term the steep fuel price hike could impact the business, the reality of the increasing price would have to be structured into the business, was how Mr Peter Bakker, Chief Executive Officer of the European express distribution company TNT, reacted to the issue.

He said with India and China and rest of Asia on a significant economic growth trajectory, he was optimistic of TNT maintaining its strong market.

On his routine visit to review the India operations, Mr Bakker said TNT India was on a consolidation process after its entry into the domestic express distribution businesses and acquisition of SpeedAge Road Express Cargo Services in 2006. Now the Indian operations have the advantage of integrated network facilities of air and road to aim for stronger growth, he said.

Mr Abhik Mitra, MD of TNT India Pvt Ltd, said that replicating its European parent’s network optimisation through seamless integration of its air and road services, the company hopes to maintain its growth of 20 per cent. He said the ‘next day delivery’ domestic market has witnessed a growth of 50 per cent, while the road express was growing at 15-20 per cent.

With the network integration, TNT India hoped to extend the flexibility to its customers.

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