Managing Director's Message
- “The Biggest Risk is not taking any risk. In a world that’s changing quickly, the only Strategy that is guaranteed to fail is not taking risk” - Mark Zuckerberg
- Greetings to the CWC Parivar, we welcome the New Year 2024 with renewed vigour and energy, as our Corporation is on the verge of achieving the highest ever revenue. CWC has grown from being a Warehousing Service Provider (WSP) of food grains to having a sustainable, balanced mix of revenue streams from agriculture and other notified commodities; facilitating storage, handling, and transportation; providing logistics support to the EXIM trade; expanding temperature-controlled storage and meeting demands of modern e-commerce and organized retail. All our general warehouses, through issue of eNWR can enable pledge finance to farmers and other needy depositors, as registered with WDRA and becoming a Repository Participant is a further step towards creating an environment for eNWR facilitation and promotion for small and marginal farmers.
- CWC is now in transition phase from core warehousing services to being a complete Logistics services provider to fulfil the needs of every industry and market. In this direction, CWC is in the process of procuring container rakes and domestic containers enabling interconnectivity between Ports/CFS/ICDs/ PFTs leveraging DFC; developing cargo aggregation/dis-aggregation centers to facilitate domestic containerized business; Rail Operations through Strategic Alliance arrangements, developing multi-facility rail terminals; and planning to set up/JVs with developers of MMLPs. Diversification of Agri and Industrial Warehousing by providing End-to-End Services and Strategic Partnerships, JVs with 3PL/4PL/5PL. Capacity expansion, modernization, development of warehousing and Integrated logistics infrastructure/facilities for receiving/procuring goods from manufactures/producers to warehousing, aggregating, sorting, grading, primary and secondary processing, packaging, and distributing. Further, asset monetization, setting up of cold storages through PPP mode at various locations, automation, and forays into value added services are all part of the Corporation's growth story.
- CWC is currently focusing on creating a lean maintenance environment and reducing life cycle costs by using low-maintenance materials. Aiming to improve the quality standards of warehouse infrastructure, emphasis is placed on quality and safety audits and the pursuit of star ratings. We now aim to modernize our end-of-life infrastructure to make it more competitive and compliant with new warehousing needs in the coming years. Accordingly, modernization of conventional warehouses in Tier-I and Tier-II cities by leveraging the modern technology is under progress which will enable us to create additional 25 Lakhs sqft of covered space with efficient use of land area.
- In the next two years, with all this transformation we aim to reach an ambitious turnover target of Rs. 5000 crores, with an operating capacity of 710 Lakh Sqft, at least 20 value-added service centers, over 100 cold storage units, mechanized handling operations in warehouses, end-to-end logistics solutions, modern warehouses in Tier I and II cities, agri products procurement operations, domestic and EXIM rail operations through own rakes and containers, Gati Shakti Terminals, logistics parks, integrated facilities, robust ERP, and AI based CCTV.
- This growth trajectory requires committed human resources that are highly motivated, passionate to lead the change as well as a can-do mentality to provide exceptional services with a willingness to learn and lead in warehousing and logistics sector. I indeed have no doubt that all of us have it within us to deliver.
- In fact, declaring that the Corporation has been operating extraordinarily successfully in recent years fills me with immense pride. It is truly a privilege to serve as Managing Director of a strong and self-motivated team of 1985 colleagues. In addition, CWC has enlisted young professionals to drive marketing efforts and support regional business development. CWC has been consistently rated as “excellent” by the Ministry for the past three years which we are sure to continue.
- CWC has full faith in the ability of each one of you to deliver as per expectations and it is our responsibility to uphold the trust placed in us by the prestigious Board of Directors and the Ministry, who have been with us every step of the way, providing continuous guidance and support. To benefit stakeholders and society at large, we must keep innovating, experimenting, and communicating our ideas, overcoming prejudices, dreaming big, listening to our clients, and using technology. You will succeed if you believe you can. Believe and you will succeed. I am confident that with concerted efforts and the right focus, we can realize our dreams. Let us jointly write a new story in the New Year.
- Let us happily and passionately continue our persistent quest of excellence into the year 2024 and continue to achieve greater heights. Wishing you all the very best in New Year 2024.
- “IF YOU WANT A NEW OUTCOME, YOU WILL HAVE TO BREAK THE HABIT OF BEING YOURSELF, AND REINVENTA NEW SELF” - JOE DISPENZA
Around the year 2000, Infosys adopted the policy of Doing It All (DIA) by providing
end to end services, right from starting stage of technology consulting to re-designing the
client’s operation to strategy, writing IT system specification, developing, testing, installing
necessary software applications, upgradation of IT infrastructure and at the end, Operation &
Maintenance of software & hardware. By doing all, Infosys captured range of services of the
client company. It resulted into Customer (Client) Value Creation (CVC) i.e., Client Company
saved lots of money & time, achieved ease of doing business, became free from hassles of
coordinating 5 to 6 vendors for one job. This in turn helped the client company to concentrate
and develop core functions & products.
CWC mostly does storage function which accounts for 70% of its operating turnover. We are also doing transportation, handling (receipt/issue) and inventory management for few depositors, but not for all commodities & clients (depositors). Many depositors of CWC are getting these services through outside labour & contractor. Cost of H&T in the supply chain logistics is about 60% of total logistics cost whereas storage cost is about 20%. Therefore, CWC is losing hugely, say, about Rs.1000 crore of turnover. We are also losing on account of supervision charges on handling, transportation, inventory management, Pest Control fumigation, disinfestation services, etc.
CWC is mostly doing storage for FCI, NAFED, CCI, CMSS, State Civil Supplies Corporations, etc, but we are not doing handling (both at the time of receipt & dispatch) and transportation (to & from warehouse) and inventory management, for all depositors. These are varying from region to region. Thus, we are losing income from associated services, which others are doing from CWC campus, though the stock is stored in central warehouses. Therefore, all of us should study business profile of various depositors and their supply chain logistics. We should propose plans to take-up possible logistics function of depositors by following the concept of Do It All (Dia), for mutual benefits of all.
It is proud moments for me to join as MD of a Miniratna Schedule "A" corporation, CWC, which is continuously giving dividend to shareholders, since inception (1957). It has sound business streams, PAN India level diversified facilities and competent & committed manpower. With its core strength in the field of scientific warehousing, CWC is very well serving the growing need of Indian economy. It is operating in highly competitive service sector, lately though shifting from monopolistic to free market economics. Type of warehousing facilities required by 2050 will be different from 1950. About 60% of India's population will live in cities by 2050 compared to 31% as per 2011 census and number of million plus cities will cross 100 marks. India is vying to become the number one economy on GDP (PPP) basis, in the world by 2050. Our logistics cost (13% of GDP) & Logistics Performance Index (35) are on higher side compared to logistics cost of developed countries (8% of GDP). Farmers' income & liquidity require boost, as 58% of population still depend on agricultural income. Warehousing is the smallest part of logistic value chain, but it stores commodities for the longest period of supply chain responsibility. Food grain cannot bear high logistics cost of procurement, storage, transportation and distribution, because its weight to volume ratio is unfavourable for transport and it is price sensitive commodity. So, CWC mustposition itself to meet the demand of trade & industry atlower logistics cost.
CWC's turnover has been about Rs.1600 crores for the past few years, wherein warehousing & market facilitation charges contribute 85% and rest 15% come from CFS/ICD, CRT, ICP, PCS, interest and dividend income. The 1st Quarter of F.Y. 2018-19 has shown some improvement in the storage space utilization after the major repair of the non-operational warehouses in the last three years. Our endeavour should be to make all warehouses fully functional and world class, to be the 1st choice of Govt & private customers, for the storage of agricultural produce, FMCG, Industrial goods, E-commerce, open stock yard, cold chain (controlled atmosphere & temperature), distribution logistics, etc. CWC must organically grow, for better utilization of scarce & costly land & space, by adding more warehouses, silos, mezzanine floors, high rise warehouse, perishable cargo centres, private freight terminals, etc. CWC must have strategic tie-ups with non-competing partners, particularly, Govt. organizations and PSUs (airport, railway, port &highway) for economy of scale and capitalizing on transport infrastructure being created through Bhartmala, Sagarmala, Dedicated Freight Corridor and other growth drivers, like, GST, warehousing hubs, primary locations & facilitation centres, DMIC & AKMIC, freight village & other MMLPs, manufacturing thrust (Make-in-India) for achieving above 30% share in GDP by 2030, E-Commerce, exports, etc.
Transportation of domestic cargo, particularly food grain by double stack dwarf container under electrified section of railway and coastal shipping, setting up silos & warehouse under PEGS (about 250 LMT), etc, will change the whole dynamics of warehouse location, size and numbers. CWC must tune as per the continuously changing canvas as well as embrace customer value creation ethos, to attract additional commodities for storage. CWC must cater service/quality, time and price sensitivity of customers. We must ensure & improve equity of all stakeholders, particularly, staff & customer by making use of modern tools, like, E-governance for paperless office working, real-time distributed decision making, WMS/DOS, digital marketing (web-based continuous visibility/monitoring of customer) for tapping potential customers and online booking of storage space, mechanised/automated handling of cargo, etc. Let us pledge and join hands together to develop our core competency & commitment for the growth of CWC. Let us confront issues plaguing warehousing sector and be passionate about CWC and what we are doing here. Let us eliminate class distinctions & align all forces (management, culture, manpower, financial interest & technology) to become the best warehousing service provider. Lets us be focused, like, Lord Arjuna, on our customers & the single most important economic denominator, "profit per ton of storage". Let us make "warehouse for everyone, a reality".
1. I heartily wish you all Happy 72nd Republic Day. Now, let us take pledge to honour the essence of this National Festival, serve the society, CWC & Nation to the best of our ability, respect the law of land, act as per empowerment, duty & responsibility.
2.Today, we have released the e-calendar 2021. It is yet another digital milestone. It is well thought & prepared. I congratulate Sh A. M. Rao, GGM (Pers&MIS) and all team members of Personnel and MIS Divisions, for their nice effort & novel idea, intended to save trees / environment. We will improve it further with your suggestions in coming days. It will be a dynamic e-calendar, to be shared among customers employees & all stakeholders.
3. Today, we have launched the strategic initiative, that is, first ever Brainstorming session, on the alternative usage of vacant land. Remember, either we make the best commercial usage of scarce & costly vacant land or else, the Central Govt. will monetize land, but that will be at the great financial loss of Corporation. We have to perform or else we will perish, like many old days landlord. At this stage, I would like to congratulate GM/Commercial, Sh Samuel Pravin Kumar, for his proactive thinking towards the growth of Corporation.
4. Let me share memoir of IIT Delhi-1985. Late Dr.(Prof) Krishnamurthy gave a piece of plastic & postcard to all 25 students in brainstorming classroom, with project, "alternative usage of plastic material". My classmates came with various options, right from small button of shirt to spare parts of rocket for the journey of mankind to Moon.
5. There may be an absurd idea but do not stop your imagination. Be positive. Do not criticize. Do not laugh at others. Do not hold your ideas. All problems have more than one solution. Just jot down ideas and share and frankly discuss out. During final brainstorming session, narrow down to possible applied solution, i.e. implementable one.
6. At the end of each Brainstorming session, you should take action notes/ points. Remember, plans are mere piece of paper, till it degenerates into hard results. And CWC future lies in your meanigful/ well intended action. Catch opportunity at the first instance and match it to corporation diverse business profile and act.
7. Also remember my honest statement, "all of you are the Managing Director of your site, Central Warehouses, Regional Office". You must have pride & ownership. You must think, it is your Corporation. Dear, it's all a mind game, whether you want to climb Mt. Everest or not.
8. Last but not the least, I wish this first Brainstorming session, a grand success. Your team lead Sh Samuel Pravin Kumar has choosen a beautiful tagline, brain for business of the brainhouse of CWC.
9. Dear Pravin, I am personally thankful to you for making CWC a vibrant, full of energy & joyful Corporation.
A very Happy New Year-2022 to all employees, colleagues, CWC Parivar and Stakeholders Our corporation is on the cusp of achieving Rs.2500 crore turnover, coveted Navratna CPSE status and getting converted to Company. We are gradually giving up tagline of Warehousing Service Provider (WSP) of foodgrains to a sustainable mix of revenue streams of agriculture and
Other notified commodities, e-commerce, domestic and export-import,trade & industry, general & dedicated warehousing and covered & open storage, i.e., all eggs are not put in one basket”.We started monetization of un/under-utilized vacant land and vertical space of warehouse, much before the Govt. of India launched,