06 June 2020


The new government should look to implement waterways for cargo movement



Liladhar Pasoo is a complete supply chain management company based out of Mumbai encompassing all activities under one roof. The logistics firm has executed numerous prestigious projects and general cargo movements on door to door basis and boasts of a global presence. From an established Customs House Agent it has steadily grown to be counted among the few 360 degrees logistics solutions providers in the country.
RAJESH MEHTA,  EXECUTIVE DIRECTOR, LILADHAR PASOO offered SHRIKANT RAO an understanding of the role played by his firm in the logistics sector on the sidelines of a seminar in Mumbai.




Could you tell us about the role played by Liladhar Pasoo in India’s infrastructure space? 


Liladhar Pasoo is a 95-year-old company. We started our journey as a customs house agent and today we have been taking India’s best Custom House Agents award for the last three years. We have a presence in close to 170 countries globally through our agency network partners. We offer services to industries on an end-to-end basis. We cater to almost 18 to 20 industries which include chemicals, paints, cosmetics, engineering, EPC and sugar plants. At Liladhar Pasoo we offer 360 degree logistic solutions. We do customs broking; we have our own fleet of vehicles. We have warehouses totalling 7 lakh sq ft all over India – and these are not simple godowns but where we do a lot of out of box activity like inventory management, bar coding, track trace till the last kilo of the inventory. We are committed that all inventory which we manage in our warehouse will have no pilferage, no damage, till the last kilo. Sandvik Asia, L&T, ISGEC, ONGC and BHEL are just some of our many customers. The latest major project we have done is for GVK’s T2 terminal in Mumbai where we picked up cargo coming from Hong Kong and China and got the dome for the airport assembled at our Bhiwandi warehouse. Then the whole dome was transferred through a semi low bed trailer to the L&T site at Andheri.




Which are the other important projects you have supported?     


We have a good presence in the cosmetic industry. We are also into chemicals, into paint industries in a big way. In fact in some industries we command 20 to 70 percent of the logistics. Like in paints we are being patronised by PPG Asian paints, Kansai Nerolac, Berger Paints – these guys directly or indirectly actually control 70 per cent of the paints industry. We have been associated with them for more than five decades and that’s how we control the logistics industry for paints. Similarly we do it for chemicals, cosmetics and oil and gas. We are level I vendor for ONGC right now, when we receive their cargo we customs clear it and move it to the customer warehouse. Thus we are involved in logistics optimisation.




Tell us about your fleet.      


We have 160 vehicles. Some ninety odd vehicles are at our Mundra Container Freight Station (CFS) which is the gateway for the north of India and the balance is discreetly placed in the north and rest of India in parts of Chennai also. In addition to that our associate companies and partners are working with us for last so many years. So the collective strength is more than 1500 vehicles.




Which are the industries to which you are currently offering support?      


We are focused on industries like chemicals, paints, cosmetics, drugs machinery, plant engineering, agro products, auto accessories, consumer durables, telecom and energy. In energy we have worked for big players like Suzlon.




How is your company contributing to the country’s infrastructure building exercise?


We as a supply chain and a service vendor have limitations in terms of deliverables. The contribution which we can make is we can help reach our customers goods faster. For example, GVK project was a time-bound project and they wanted goods on time every time persistently. We could achieve that by managed to deliver within the deadlines given to us. We do big sized projects. We were Level I vendor with BHEL for four years and have handled almost 80,000 tonne of cargo for them.  Most of the projects we work on are international. We have carried sugar plants to Africa for ISGEC. They are an EPC company based out at Delhi. They undertake projects, make it here and deliver it to other parts of the world.




How has your firm performed through 2013?  


In 2013-14 industries were feeling cautious but we were aggressive in terms of team management, team building, inspiring them, and in reaching the right customers and decision makers within them. We are keeping things in readiness. The moment they have the money and plans to start business we should be there to offer our logistical support.




How do you expect 2014 to unfold? What are your expectations of the new government?     


I am very optimistic. Infrastructure building should be the first priority for the government, apart from empowerment and other things which they have promised, because unless they connect internally we cannot expect to become global. They have to build roads as in India today maximum cargo is moved by roads. Almost 60 percent of cargo is being moved by roads, almost 18-20 percent moves by rail and 10 percent goes by other mode of transportation like coastal waterways and air. So if you see conventionally India is still dependent on roads in a big way. I would wish that the new government should go out of the box implementing waterways for only cargo movement. While we have been cribbing for ages China has been very successful and have dropped their logistics cost by implementing their waterways – they are doing it at 8 per cent because of the techniques which they implement against our 13 per cent. The big multi-national giants or Indian blue chip companies should be given the reach where they can produce their goods and put it on the waterways.

They can then connect to any part of the country using waterways and find their transportation cost going down by almost 20 to 30 percent.




Are there any other airport projects on which you are working? 


We recently completed one airport project in Bali where the procurement was done from China, Hong Kong, Taiwan and Europe and then it was cleared and delivered to Bali. The whole project was done very successfully. I view it as the second feather on our cap after our assignment for GVK’s Mumbai airport project. There were a total of 500 containers which came in and 800 containers for loading and unloading baggage, about 200 odd elevators.  We are now also pitching to support the Delhi airport renovation project




There are a lot of small city airport projects being planned. Do you see an opportunity for your firm to play there?


I see a lot of projects coming up. And we would very much wish to approach the authorities to be able to give them the same level of service that we gave in the case of Mumbai’s T2.         


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