Mr. D. P. Agarwal, Vice-Chairman and MD, reviews the performance of the
 Company in 2010-11 and the road ahead.
 
 TODAY, WE ARE INDIAS LEADING INTEGRATED LOGISTICS AND SUPPLY CHAIN
 SOLUTIONS PROVIDER AND THIS TRANSFORMATION WAS REFLECTED IN OUR 2010-11
 PERFORMANCE:
 
 Revenues grew 21% to Rs. 17,598.55 million PBT grew by 18.36% to Rs
 800.48 million Profit grew by 19.41% to Rs. 513.2 million
 
 This positive and above-industry-average transition was derived from
 our ability to look ahead at every juncture, resulting in an early
 mover advantage across our businesses. More than a decade ago, we
 perceived an evolving external customer environment and a growing need
 to outsource logistics solutions to specialised service providers.
 
 TCI looked and thought ahead. The Company commissioned two divisions
 providing differentiated solutions - supply chain solutions and express
 logistics.
 
 The SCS division provides inbound/outbound logistics and supply chain
 solutions right from conceptualisation to implementation.
 
 The XPS division provides express door-to-door services for
 time-sensitive and high-value documents and parcels.
 
 The results of our proactive understanding of industry dynamics were
 reflected during the year under review. The combined revenues of the
 two businesses was 48.43 per cent in 2010-11.
 
 TCI has continuously introduced new and innovative services from
 multi-modal transportation (road, rail, air, sea) to express delivery
 solutions, from freight forwarding and customs clearances to warehouse
 management services.
 
 TCIs strength lies in providing value- added services and complete
 supply chain solutions to suit the unique needs of our customers.
 
 The industry picture
 
 We were optimistic when we commissioned these two businesses a decade
 ago; we are even more optimistic today for the following reasons:
 
 One, Indias annual logistics cost is estimated at about 12 per cent of
 its GDP or USD 150 billion (assuming Indias GDP is USD 1.4 trillion).
 Most numbers in India underperform developed market benchmarks. In the
 logistics business, the scenario is reversed, with logistics costs in
 developed nations only 8-10 per cent of their GDP.
 
 Two, Indias logistics industry has a 1-1.5 multiplier with its GDP,
 which augurs well for the industry considering that Indias GDP growth
 is projected at 8 per cent-plus for the foreseeable future, the second
 highest in the world.
 
 Three, logistics opportunities are not only expected to increase but
 also expected to become more efficient, following the commissioning of
 3,287 kms of the eastern and western dedicated freight corridors in
 India in five years as well as the governments thrust on
 infrastructure with the allocation of USD 1 trillion as per the twelfth
 five year plan.
 
 Four, the implementation of the Goods and Services Tax will enhance
 systemic transparency, counter the incidence of cascading taxes and
 help consolidate the warehousing segment through larger premises at
 fewer locations, leading to more hub and spoke movements.
 
 Five, the rising per capita income along with Indias retail
 consumption boom will demand more transshipment of cargos inside and
 across the country. The per capita income in expected to be at Rs.
 54,527 in 2010-11 against Rs.  46,492 in 2009-10 and Rs. 40,605 in
 2008-09. By 2025, India will triple its income level and will become
 the fifth largest consumer market, climbing from its current position
 at 12.
 
 Six, there is a fundamentally positive trend within the countrys
 automobile sector. For instance, domestic vehicle sales increased 26.17
 per cent in 2010- 11 (15,513,156 vehicles), one of the highest rates
 anywhere in the world.  Even during the worldwide fiscal slowdown, a
 few years ago, Indias automobile industry grew in an excess of 10 per
 cent, indicating the sectors fundamental robustness.
 
 Optimism
 
 What makes me optimistic about TCI?
 
 A number of realities.
 
 An increasing number of companies are outsourcing logistics to
 specialised service providers for a good reason - logistics
 (transportation, warehousing, inventory management and value-added
 services like packaging) represent one of the highest indirect
 production costs, making it imperative for companies to work with
 specialised service providers, who make it possible to reduce
 inventories and working capital outlay and strengthen overall
 businesses. TCI is the embodiment of this prove-what-you- say”
 environment.
 
 TCI is not a moribund service provider, doing business as it was
 conducted decades ago. The Company is alive to the evolving realities
 of the day and has innovated and responded to the emerging needs of
 customers.
 
 TCI stands for an integrated solution.  Even among organised Indian
 logistics players, few have offerings across multiple modes through a
 single window.  As a result, we do not just promise to deliver from
 point A to B, we promise to enhance our customers business
 productivity. The endeavour is not just to cross-sell, but also upsell
 
 TCI may have been started by an entrepreneur, but the Company combines
 the best of family-driven solidity and insight, with managerial
 professionalism through individual chief operating officers managing
 each business segment.
 
 Outlook
 
 At TCI, we expect to capitalise on growing national opportunities by
 venturing into new business segments and growing our existing segments,
 especially through the retention of key clients. Going ahead, we
 believe that industrial productivity, investments and GDP growth will
 increase, catalysing TCIs growth.
 
 I would like to express my gratitude to our shareholders, employees,
 bankers, customers, suppliers, advisors and other partners. They played
 a motivating role in our performance in 2010-11 and we will endeavour
 to enhance value for our stakeholding family.