The Management Review_March 2021

Editorial Committee Mr. Suresh Kochattil, Co-opted Member Mr. Sankara Venkata Krishna Prasad, Life Member, Joint Secretary & Editor Mr. Narayan Rao, Life Member Mr. V Ramchander, Life Member, Secretary Mr. P. Rajendra Krishna Prasad, Life Member Mr. K. Chandrasekhar, Member & Treasurer Mrs. Geeta Mallikarjunan, COO Prof. A. R. Aryasri, Life Member

PRESIDENT'S MESSAGE taste the work environment. IRP CONTENTS certification program will be a huge success in times to come. President’s Message Sanjay Kapoor 2 Our survey on Covid was Sanjay Kapoor ahead of times and the others The Editor’s Desk President, followed later. In the same Sankara Venkata Krishna Prasad Hyderabad Management Association fashion we have started the 3 MSME survey for digitalization The flurry of activity since and once completed, its results A Vaccine Boost to 4 the beginning of the year has will be taken to the ministry Start Up-Statwig proved that the Hyderabad with suggestions for policies. Mulugu Somasekhar Management Association is on its toes always to deliver The nominations received for Seven Key Implications of the best to its members. awards 20-21 under different Covid 19 on Financial Reporting Productivity has been categories are satisfactory. Dr. Sri Harsha Reddy6 maximized inspite of Covid and The jury is in place and the we have tried to do our best on ceremony is planned within How Container Shipping has varied fronts despite hurdles, March 2021. Keep a tab on the Evolved Over the Years in the form of nonphysical announcements through various Balantrapu Sarath Chandra 8 meetings. means How Container Shipping has The online AIMA HMA Regional The Membership drive is On Evolved Over the Years Management Conclave was and Word of mouth is the Balantrapu Sarath Chandra 8 a huge success. The plethora best form of brand building of speakers/panelists and the and advertisement. What Lancer Container Lines Ltd - 9 chair kept the audience glued better way to do this than to a Rising Organization in to the seats. It was a satisfying spread the word? The more the Logistics Sector conclave and the take aways members talk about activities of Zohra Chataiwala were numerous to all. HMA among peers, family and friends the more people will be Hyderabad Through They say that productivity is interested and join HMA. the Eyes of Kingshuk Nag never an accident. It is a result Kingshuk Nag11 of commitment to excellence, We look forward to another intelligent planning and round of brand building and yet Business Quiz – focussed approach. We as a another industrial visit planned 17th Edition, March, 2021 12 team have tried our best to be & will be announced shortly. productive on all fronts and use Look forward to more exciting Team HMA 2020-21 13 each other’s strengths to garner announcements soon our goals. Our 2nd session of Feedback: There is nothing like the Industry Readiness Program We must recall David Brier’s honest feedback. We request has commenced – the first words you to go through this issue of batch successfully completed The Management Review and the certification course and If you don’t give the market the give us your suggestions on students are on their way to story to talk about, they’ll define how to improve the design and the brand’s story for you. content of the same. You can email us on : So, let us together build the [email protected] story for the market to talk about.a 2 THE MANAGEMENT REVIEW

Volume: 20  |  Issue: 08  |  March 2021 THE EDITOR’S DESK This month’s edition has a precise and The South Central Railway and its evolution Sankara Venkata Krishna Prasad focussed topic of certain Key Implications is examined by the veteran columnist Editor of COVID 19 on Financial Reporting which and the former resident editor of TOI, The Management Review was contributed by the dean of a reputed Hyderabad Hyderabad based Management Institute and participants on some of the important the program director for HMA’s IRP. As part of its evolution for better, in a business features to assimilate and get to first of its kind, the Editorial Board of your work as they enter the industry. Another article covers the shipping favourite newsletter planned a videographed As part of the 48th Annual Awards industry from the point of view of a over 4 interview of the expert on shipping, the links scheduled to be held on 19th March decades experienced professional as well are provided in the relevant columns for 2021, team HMA met up with the head as a medium sized operations organisation your ready reference. From this month on, of the state of Telengana, the Hon’ble headed by an young woman entrepreneur. your favourite newsletter would carry an Governor to invite her to be the chief guest interview video recorded each month. of the function. As all the management Using the blockchain technology, a start professionals across Andhra Pradesh and up organisation networks with the stake This edition has two supplementary editions Telangana await eagerly for these coveted holders to see that a mechanism is built up awards presentation, and as the jury is on to track and trace the vaccines covering • The eventful Regional Management its job, let’s look forward to the momentous from manufacturing and delivery, pandemic Conclave -co-hosted by AIMA and occasion for the management fraternity. and its after effect as a booster dose, a HMA are the flagship event of the timely start up story by the expert journo, month participated by Who’s Who of For more on things HMA, please refer to through his scientific lens gauges the Management these columns …. business angles too, hinting the sky as its limit during these difficult but opportune • The Industry Readiness Programme, Editorial Committee times. Cohort 2 getting to a kickstart with two of the past presidents apprising the Mr. Sankara Venkata Krishna Prasad, Life Member, Joint Secretary & Editor HMA UPCOMING EVENTS-MARCH 2021 Mr. V Ramchander, S.No Date Program Mode Topic Speaker/Faculty/Guest Life Member, Secretary 1 02.03.2021 SDP Virtual 2 07.03.2021 Cyber Crimes Mr S. Harinath, ACP- Mr. K. Chandrasekhar, 5 and Women Cyber Crimes, Rachakonda Member & Treasurer 19.03.2021 4 Commissionerate Prof. A. R. Aryasri, 3 3rd or Life Member 4th week MDP Virtual Finding Jobs in Mr. Sivaram Tekuru, of March COVID Era and Senior Consultant, Mr. Suresh Kochattil, Co-opted Member 2021 After Captain Strategy 27.03.2021 Mr. Narayan Rao, HMA Physical HMA Annual Venue: Ball Room, Taj Deccan, Life Member 48th (Entry by Awards Hyderabad. Annual invitation) Mr. P. Rajendra Krishna Prasad, Awards Presentation The Chief Guest (awaiting Life Member function confirmation) is Dr. Tamilasai Soundararajan, Hon’ble Governor for Mrs. Geeta Mallikarjunan, the Telangana State and the current COO Lieutenant Governor of Puducherry. THE MANAGEMENT REVIEW 3 The Guest of Honour is Shri Sumit Deb, CMD, NMDC Limited, Hyderabad Panel Virtual Impact of Discussion COVID-19 on Indian Economy To be Confirmed HMA & and the way IDSA Forward MDP Virtual “Interpersonal Dr.D.V.Ramana Murthy, PhD Communication (Management) Professor in - Transactional Management and Director & Core Faculty, Attitude +ve, Behavioural Analysis Approach” Skills Training Solutions  https://twitter.com/hydhma   https://www.facebook.com/HyderabadManagement/   https://www.youtube.com/channel/UC9Ejy1Z3kng4kibICNvZzWw/featured  https://www.linkedin.com/company/hyderabad-management-association---india/  www.hmaindia.net for HMA Membership: http://hmaindia.net/membership  for AIMA Membership: https://www.aima.in/aima-membership/memberships/aima-membership.html  for AIMA MSME Awards: http://resources.aima.in/presentations/JS-Juneja-brochure-2021.pdf Dr. J. S. Juneja Award for Creativity and Innovation in Micro, Small & Medium Enterprises

Featured Article - Start up Stories A VACCINE BOOST TO START UP-STATWIG Siddharth Chakravarty, in vaccines. This project work led us to M. Somasekhar Founder, CEO of StaTwig featured at UNICEF and then to GAVI, the global, Former Associate Editor, Times Square public-private Vaccine Alliance created in The Hindu Business Line Hyderabad, 2000 to increase access of immunisation Advisor-HMA “ A start up should be spun around a to developing countries. problem”. This was the key learning The StaTwig Solution:  reasons during their supply like during my stint in the Silicon Valley, StaTwig has developed a blockchain- fluctuations in cold storage, temperatures US. The problem I chose was efficient based supply chain platform that connects and during transportation. There is also Vaccine delivery and launched StaTwig in manufacturers, buyers and the final the larger issue of fake and expired 2016 on return to India, says Siddharth receivers of vaccines with the objective to products in the market as counterfeiters Chakravarthy. improve the efficiency and traceability of are trying to take advantage of shortages their distribution.  and panic due to COVID 19, he says.  With Vaccines on everyone’s mind the “What we have done is to put in place a world over due to the Pandemic, this tracking system based on blockchain that In a remarkable turnaround in fighting Hyderabad-based start up has landed helps in assigning identities to products the pandemic during 2020 scientists itself plumb in the centre of action— at the manufacturing plant and track have been able to take the world into a Hyderabad has emerged as the global hub them at every touchpoint, like airports, more prepared and confident 2021 with for vaccine production, with more than warehouses, hospitals etc on their a handful of vaccines developed and half a dozen manufacturers like Bharat journey”, he explained. brought to the market in just over a year. Biotech, Biological E, Sanofi Shantha In other words, we put our tracking From desperate bids to halt the rapid Biotech, Indian Immunologicals, new software system in place for each Pallet spread to provide large scale protection, entrants like Dr Reddy’s and Aurobindo ( which contains about one lakh vaccine the journey has been quite exciting.  etc.. doses). Then, a QR Code is captured. Thereafter, the entire movement of each But the challenge now is to address the If COVID-19 has broken the back of most vial can be monitored on an online basis. complexities of delivering these vaccines businesses and enterprises, StaTwig has All it requires is a mobile device to scan the from Pfizer, Moderna, Astra Zeneca, got a master booster dose in contrast. barcode on the box of vials and the  Bharat Biotech, Sputnik V of Russia and It’s expertise in tracking and delivery of Sinopharm of China and a few more in vaccines along the supply chain using  complete chain of history is recorded. the offing to billions of people around the blockchain technology has catapulted it Any problem encountered in a vial ( world, quickly and equitably. to the frontlines of efforts to distribute vaccine) sets off an alert and we can vaccines in the quickest time even while initiate corrective steps, he says.  The advantages that StaTwig’s enjoys over ensuring they are effective. According to data, around 30 percent competition is its cost competitiveness, of vaccines get wasted due to various locational advantage of being in Incubated at the T-Hub in Hyderabad Hyderabad, use of mobile technology and endorsed by UNICEF by grants and to build the platform without much sourcing its expertise in aiding vaccine hardware etc. which is also making delivery, the company has been on blockchain a favourite for supply chain boarded by 5 top vaccine makers, who technology, he says. would be delivering between 200 m to 500 million doses in the near future, says Siddharth, the Founder and Chief Executive Officer. During 2018-19, the pre-COVID19 period, “We got the mandate from UNICEF to test our product in countries like Jordan, Kazhakastan, where vaccines were supplied and given to people”, says Siddharth. This experience has come in handy during COVID 19, he adds. Interestingly, StaTwig attracted attention of Bill and Melinda Gates Foundation. The Foundation wanted us to find the reasons for about 30 percent failures/damages 4 THE MANAGEMENT REVIEW

Volume: 20  |  Issue: 08  |  March 2021 Featured Article - Start up Stories (Cont...) new products. At the end of 2016, he returned to India with ideas of getting into entrepreneurship. After listening in at conferences of industrial bodies like the Confederation of Indian Industry and exploring the manufacturing sector, the problems faced in the supply chain attracted his attention. In addition to the early mover advantage, The next step was to find a niche area. huge roll out challenges of the COVID 19 being at the ‘ Right time, Right place During my research, I chanced on Melinda vaccines, he adds.  and having the Right solution’ have all and Gates Foundation, who wanted us to combined well in our favour. We expect work on vaccines and wastage control. I One of the revenue models for the 200-500 million vaccine doses going moved into T Hub with StaTwig. company is the charge levied on through our solution this year, he hopes.  tracking of each vial at present. In 2022, On why the name StaTwig, he says it’s just the company will explore option of There are competitors, especially catchy and easy to remember. In addition, diversifying into other products for select in the US, but mostly in the entire its roots are in Statistics and Data Science, companies in supply chain management Pharmaceuticals area. Companies Siddharth explained.  using our vaccine experience, says a tracking Pharma products and vaccines confident Siddharth. at present offer solution that are a bit The growth and looking ahead: expensive to developing nations, though The company also has global expansion in tune with the countries they operate. Our basic objective was to create social plans with Middle East, Australia and Vaccine demand is mostly in developing impact using latest technologies like Africa in the radar.  and poorer nations, which require an blockchain and create a niche market. The affordable solution, he says.  experience with Gates Foundation, got us onto UNICEF in 2018. We got grants The Beginnings: twice from them and the work got us international exposure too.  Siddharth Chakravarthy is a Computer Engineer from Hyderabad’s, Osmania Slowly, our strength grew to 22 University College of Engineering. After employees and I also brought in a partner. working for a few years with a Swiss The COVID 19 has dramatically changed Bank and CSC, he went to the US to do our future. We will add atleast a dozen a Master’s from University of Maryland, employees soon. Vaccines alone is a $ College Park in 2012.  100 million opportunity for us, Siddharth says. Subsequently, he worked in the Bay Area with large corporates like CISCO. A first generation entrepreneur and son His focus was on new technologies and of a government official, Siddharth has found no problems for funding so far. In near future too, it might not be a problem as many have approaches us courtesy the THE MANAGEMENT REVIEW 5

Featured Article SEVEN KEY IMPLICATIONS OF COVID 19 ON FINANCIAL REPORTING The novel Corona Virus (COVID 19) caused many industries (such as Dr. Sri Harsha Reddy is disrupting economic activities hospitality, aviation etc..) to have Dean & Professor (Finance & Accounting), across the globe. Businesses are zero revenues for the period of IMT, Hyderabad, Program Director IRP, dealing with lost revenues and lockdowns despite continued Co-Convenor, SDP, HMA disrupted supply chains with fixed costs. This poses serious significant volatility in financial threats towards the survival of many organizations. This severely markets. Contagious spread of certain organizations challenging affected the future cash flows Corona Virus has compelled many fundamental accounting and capacity utilization of plants countries to go into lock down assumption of ‘Going Concern’. of manufacturing companies. This mode. Now, many economies are situation triggers the need to carry preparing to handle economic Long run sales forecasts, future out the impairment test of PPE crisis post lockdown. Tremors of cost of production, repayment and same will have to be disclosed COVID 19 are being felt by large of borrowing costs, cash flows, appropriately for the consumption scale industries as well MSMEs. profitability are completely of various stakeholders. The sectors which are severely disturbed. All these are required Inventory Valuation hit due to COVID 19 are Tourism, to be revisited (may be at least for Hospitality, Entertainment, a period of next twelve months) Due to shut down and closure of Aviation, Automobile, Real Estate, and appropriate disclosures to be commercial activities, inventory Financial Services, Manufacturing made by the companies regarding got piled up with many businesses and sectors which are sustaining material uncertainties. and sale / consumption of such are Pharmaceuticals, FMCG, inventory may not happen in E-commerce. Impairment of Property, Plant near future. In this context, & Equipment (PPE) & Intangible obsolescence of stock (depending In such unprecedented times, Assets upon the nature of inventory) or economic crisis will also impact possibility of stock having Net the financial statements of In simple terms, impairment is Realizable Value (NRV) lower than various organizations. In this defined as the amount by which its cost will have to be reported. article an attempt is made to the carrying amount of an asset Companies will have to bring the bring up seven most significant exceeds its recoverable amount. value of inventory at its NRV. This implications of COVID 19 on the An asset is impaired when an entity will have significant implications financial statements to be used is not able to recover it’s carrying on the reported values of gross by the investor community. These value, either by using it or selling it. are meticulously required to be evaluated for each of the entity, Covid-19 has led to closure of considering the sector to which it belongs & it’s business activities. Going Concern Covid-19 significantly impacted economies across globe which 6 THE MANAGEMENT REVIEW

Volume: 20  |  Issue: 08  |  March 2021 profits in P&L statement and size of Fair Value measurement would accounting standards and adequate current assets in the Balance Sheet. depend on the severity of the provisioning may be required based outbreak at the reporting date on such evaluation. Revenue Recognition affecting valuation assumptions of Classification of assets and the market participants. Relevant liabilities between current and As per Accounting Standards, disclosures are required to enable non-current revenue is recognised only when it stakeholders to understand is probable that the consideration whether the outbreak has been Due to Covid-19 situation, it may can be determined and can be considered for the purpose of Fair be possible that terms & conditions collected. Those business houses Value Measurement. Stakeholders of certain contractual arrangements who are doing good amount of should understand the basis for such as borrowings or advances export of goods /services are selecting the assumptions and have been reconsidered / required to assess that there is no inputs that were used and the negotiated in regard to payment, significant uncertainty for collection related sensitivities. which may lead to a reclassification towards the revenue which they of liability or advances, between are recognizing. Similar situation Expected Credit Losses (ECL) current to non-current and vice will also persist in case of domestic versa. This will impact the current sales being carried out in various Expected Credit Loss (ECL) is the ratio, which is the ratio between parts of the country. probability-weighted estimate current assets and current of credit losses (i.e., the present liabilities. In a situation of significant value of all cash shortfalls) over Conclusion uncertainty of collection towards the expected life of a financial Adequate disclosures will have the executed transaction, instruments such as loans, trade to be made by the companies as recognition of revenues will have to receivables, other receivables, per the requirements of various be deferred. investment in debt instruments. accounting standards. While, Covid-19 is likely to have an impact all of us are fighting COVID 19 Fair Value on the quantification of ECL and with social distancing, personal Fair value is the estimated price classification of financial assets into hygiene and staying safe at home, at which an asset can be sold, various buckets for recognition and Investors need to monitor the or a liability can be settled in an measurement of impairment losses. current and potential effects that orderly transaction to a third party the novel coronavirus (COVID-19) under current market conditions. Recoverability position of trade will have on companies financial This is a date-specific exit price and other receivables should reporting. Investors should look for estimate based on assumptions also be evaluated in those cases timely and meaningful disclosures that market participants would where books are closed as per about the potential effects on the make under current conditions. financial position, performance and viability of the company to take judicious and informed investment decisions. THE MANAGEMENT REVIEW 7

Featured Article HOW CONTAINER SHIPPING HAS EVOLVED OVER THE YEARS Pre and Post World War-II scenario 40’x8’x9.6’.Then we also have 20’ and Balantrapu Sarath Chandra, 40’ open top containers -the top covered Managing Director, In the early 19th Century, steamships with Tarpaulin for carrying cargoes like Sparkle Shipping Consultancy Services used to carry merchandise in bulk like Machineries Granite ,Cut and Polished Coal, Food grains, Timber, liquids like slabs and rough blocks which cannot not moving from port to port. To have Petroleum, Diesel and Oil and later be loaded through the normal door .Then balance of trade the export volume of LPG GAS and Packed Cargoes like for carrying Perishable cargoes like Food containers needs to have good quantum machinery, spares, components and stuffs, Seafood and Pharmaceuticals of imports too. consumables and other smaller packages we have Refrigerated Containers of like Garments, Cotton bales and other 20’ and 40’ and also Flat rack 20’ and The Pandemic resulted in shutting down general merchandise. These were being 40’ Containers for carrying Over- of manufacturing activity, thereby loss of loaded onto ships at ports worldwide in Dimensional cargoes such as Machines jobs and steep reduction in trade globally, a haphazard manner, whereby packages with diameter more than 8’feet.These whereby it led to fall in imports, creating used to get damaged while handling or Flat rack containers as they carry Over a huge imbalance of demand and supply enroute. The heavy cargo used to be Dimensional cargoes are always loaded of Containers, hitting the exports very loaded with cranes and there used to on the top row of the ship, Then we have badly. be manual loaders to handle the smaller 20’ and 40’ tank containers for carrying cargoes Liquid in bulk such as Palm Oil, Hazardous As all Containers are struck at various and Non Hazardous Chemicals and LPG/ ports, even the ships have stopped Around the 2nd World war, Germans CNG. calling at ports and globally there is a and Americans were looking at alternate huge gap between demand and supply modes for easy and Safe transport of Big Players of Containers. In turn the Ocean Freight warfare equipment like Tanks ,Guns rates have doubled. and Ammunition from Door to Door or Manufacturer’s site purely for Defence The top 10 leading Container Lines Future optimistic and Army purposes During this period in the World today are Maersk, the concept of Containerization had MSC, CMACGM, COSCO, ONELINE, January 2021 has seen a slow and steady evolved so that all equipment could be EVERGREEN, HAPAG LLOYD, HYUNDAI, rise of exports like Rice and Drugs and transported safely and avoid multiple YANG MING and OOCL Pharmaceuticals and Engineering goods. handling of cargoes and damages. This is good sign and things are expected All these lines put together have an to be normal by mid 2021 and the Global Era of Evolution in dimensions as well as inventory of more than 20 million shipping trade expected to limp back to wider usage scope container plying all over to destinations normalcy as per Trade circles and auger worldwide in their own more than 6500 well for the container trade.. Initially the containers were of 10’x8’x8’ ships with Container carrying capacity and in later years evolved into the ranging from 1000 containers to 18,000 present ISO Standard containers .In the containers. early 1950 and 1960’s these containers were being used to carry Merchandise as Apart from these leading carriers we have Shipper’s Own Containers .In the 1970’s NVOCC Lines with another 2 to 3 million in the best interest of the trade and to containers being carried by these Leading avoid costs and breakages, the Shipping Carriers on their ships and Feeder vessels companies started ordering Cellular in smaller routes. vessels (ships) for containers and initially there use to be combi vessels i.e the The Industry is key to Exports lower hatches of the ships used to carry Bulk /breakbulk cargoes which were over Exports are the lifeline of an Economy dimensional and the upper Deck of the and it fuels the GDP Growth and Ships used to carry Containers. earns foreign exchange, making goods competitive and generates employment. The phase of Standardization Shipping containers are the lifeline of exports.80% of global trade moves in To fit into the cellular ships all containers containers. Hence have to always keep were standardized as per ISO Norms and their dimensions were 20’x8’x8.6’  For the author's Interview with THE MANAGMENT REVIEW Please refer to the link: and 40’X 8’X 8.6 and 40’ high Cubes https://www.youtube.com/watch?v=TO606P_bx0Y 8 THE MANAGEMENT REVIEW

Volume: 20  |  Issue: 08  |  March 2021 Featured Article LANCER CONTAINER LINES LTD - A RISING ORGANIZATION IN LOGISTICS SECTOR Zohra Chataiwala Executive, Lancer Container Lines Ltd Lancer Container Lines - Total Logistics Solutions Without Limits The main objectives of the organisation The details of our services are as follows: 3. Container Trading and Leasing 1. NVOCC Lancer Container Lines is one of the Lancer sells a variety of equipment from leading logistics Companies in India and Being a Non-Vessel Operating Common our large and diverse fleet portfolio. Our abroad. Being a listed Company on the Carrier (NVOCC), we do not own any portfolio includes Maritime Containers BSE mainboard, our focus is onCorporate vessel but act as a carrier legally by (20’ & 40’- Standard/ High Cube/ Special Governance and ethics as part of our work accepting the required responsibilities types of equipment), Storage Container culture. We provide unrivalled logistics of a carrier who issues the bill of lading. and Refrigerated Containers (Reefers), etc. services around the globe, covering regions We sign contracts with shipping lines from South East Asia to the Far East, to guarantee the shipment of a certain Our organization has a current inventory MENA region, CIS Countries, and many number of units each year. In return, the of more than 9000+ containers to suit all others. Lancer is specialized in designing shipping line offers favorable rates to us. types of customer needs. Due to these customized logistics solutions to meet the NVOCC, being the oldest segment of high volumes, Lancer becomes one of the complex and rapidly evolving needs of our entire business vertical, contributes preferred carriers in the shipping industry customers. to the major chunk of our Company worldwide. revenues and hence as the largest trade From its humble beginnings in 2011, the maker for container shipment. 4. Empty Container Yard Company started as international cargo trading operating as NVOCC, and further 2. International Freight Forwarding Lancer has an Empty Container Yard covered all allied services such as shipping Lancer acts as an intermediary between on lease spread over an area of 20,000 and freight forwarding, providing space for sq meters. In the container yard, we containers in yards, inland transport services, shipper and transportation service provide Storage of empty containers, and container trading. The Company has provider and facilitates the passage of handling, general container maintenance, also added a new line of services such as cargo from the point of origin to the refurbishment and repairs, container LCL (Cargo Consolidation), Break Bulk Cargo, destination. cleaning, decontamination, container Flexi Tanks, etc. modification, etc. We cover all the major ports and ICD 5. Flexi Tanks locations through our Corporate office in Navi Mumbai, and 12+ branches in India. Flexi Tanks are some of the trending In addition to this, our offshore agency products of Lancer for liquid logistics. network in Dubai, Oman, Qatar, Singapore, These tanks provide various benefits Malaysia, Indonesia & Vietnam gives us a over drums and IBS, such as cost- leading presence along with possessing effectiveness sans any risk of cargo a strong network of experienced agents contamination. across the globe, to serve all together 30+ Countries in different regions and multiple trans-shipment locations. Bouquet of Services As mentioned earlier, Lancer Container Lines provides a wide range of logistics services in India and across the globe. Before giving any service commitment, we first carry out a survey, scout the route and final destination to determine the equipment required to handle this safely. We work closely with our clients to satisfy their specific requirements. THE MANAGEMENT REVIEW 9

Current Status of Logistics Companies model, all of which are likely to boost once supply disruptions related to the swifter logistics and supply chain sector, pandemic are addressed. We further Post pandemic, in 2021, the logistics enhancement. The budget for 2021 is giving expect sector performance to improve industry has undergone a transformational a ray of hope to the logistics industry. And going forward due to higher freight rates change. So, here is a SWOT analysis to get a even under Atmanirbhar Bharat Schemes, despite lower volumes and prudent capacity basic understanding of the logistics sector: various logistics Companies are getting good deployment. support from the government of India. STRENGTHS The critical challenge for logistics THREATS Companies – Container Shortage, Way Diverse customer portfolio forward Pandemic like COVID-19 The Logistics Companies like Lancer, have Presently, the logistics industry is facing a wide range of customer portfolios. We The pandemic disrupts the flow of business the most critical challenge, i.e. shortage have customers from multiple locations, around the world. The daily logistics of containers. There is no large container various industries such as consumer goods, operation gets disturbed and this results in manufacturer in India and almost 90% of agriculture, food, automobiles. slowing down of the business processes. containers are manufactured in China vis-à- vis most exporters and logistics Companies End to End logistics services Geo-Political Risk have been relying primarily on Chinese containers. The end-to-end solution includes air, road, Each and every logistics Organization and sea logistics. Lancer provides all logistics risks business while dealing with overseas India has never faced a shortage of services with bonus features i.e. Customized organizations. Organization should have containers earlier as its imports were always solution. We try to customize the services flexible logistics operations to avoid the higher than exports during most periods. as per customer needs and requirements consequences of geopolitical risks. Imports into India have dropped significantly and provide the best possible solution to during the Pandemic. This imbalance has customers. Environmental, Social, and Governance created a shortage of containers for Exports. Moreover, this decline is not only due to Customer Services The sector remains subject to risks of trade the pandemic, with the success of the protectionism, uncertainty about economic government initiative to boost exports and Customers’ logistics requirements are recovery paths in different regions, as well minimize imports, but India may also see a not a one-time thing. So, Lancer provides as ESG-driven initiatives such as IMO 2020 substantial decline in imports over the next the best of services to retain customers and other emission regulations. couple of years. This will further enhance and build long-lasting relationships. Many container shortage. organizations choose Lancer because of Impact of Covid-19 on Lancer Container the effective customer service & timely Lines and the future in the Post-Covid The government of India is looking for a execution. Scenario long-term solution, taking initiative through the “Atmanirbhar Bharat” Program. Container Wide overseas network Lancer Container Lines comes into essential manufacturing is expected to be a part business so, there was not much impact on of “Atmanirbhar Bharat” and the ministry Logistics Companies operate by network the organization’s operations. Container of ports, shipping and waterways have build over the years. The Lancer Container box shortages and port congestion due to already set up a committee to study the lines have established good business pandemic-related detentions and disruptions feasibility of manufacturing containers at connections with multiple renowned agents’ have prolonged container ship’s turnaround various locations. India will soon all set to in different Countries for the smooth flow of time, further increasing freight rates. So manufacture containers to boost exports of the business. on the one hand movement became slow the Country. but simultaneously a jump in freight rates WEAKNESSES nullifying the adverse impact on revenues. In sum, Lancer Containers will continue to build on our strategic vision to connect Lack of a fully organized system Even during the pandemic, Lancer hasn’t directly with end-customers by delivering failed to provide utmost support to its solutions that remove inefficiencies in the At present, the logistics sector in India is customers through flexible and continuous logistics and supply chain industry. unorganized, and catering to challenges customer service. like high cost, slow turnaround time in the You can connect with us and get the latest domestics, and global market has brought Demand-Supply mismatch due to container updates on the logistics industry from Lancer difficulties upon this sector. shortage and port congestion gave rise to Container Lines Ltd. delay in the shipments but this effect, we at Tough competition Lancer feel to be temporary. We therefore Website - http://www.lancermarine.in/ also feel that container rates along with The logistics industry is full of small, spot freight rates will remain high in the LinkedIn - https://www.linkedin.com/ medium, and large-scale organizations. This short term, however, the current rates will company/lancer-container-lines-ltd creates tough competition which ultimately be unsustainable in the medium term as the results in smaller market size. sector is susceptible to rate volatility and Twitter - https://twitter.com/LancerContainer economic recovery. Online presence We expect rates of containers to reduce Digitalization and artificial intelligence is the need of the hour, however are not yet completely explored and utilized by most of the Corporates in the logistics sector and are still at a nascent stage. But at a fast pace, we are trying to reach online technologies for a better and wider presence. OPPORTUNITIES Digitalization Digitalization will be a new normal in the logistics sector. This will give a huge opportunity for small and medium logistics Companies in terms of saving time and cost of the operations. Government support to the logistics sector The government is starting to help the logistics sector in India. National logistics policy with schemes like Sagarmala, Bharatmala, Port infrastructure, Warehousing, and public-private partnership 10 THE MANAGEMENT REVIEW

Volume: 20  |  Issue: 08  |  March 2021 Featured Article HYDERABAD THROUGH THE EYES OF KINGSHUK NAG Today Hyderabad is well endowed with connections! This had a purpose: the Nizam Kingshuk Nag multifarious railway connections with the could be made to pay for running the Former Resident Editor, Times of rest of India. Secunderabad, the twin city of railways if he was seeking it. The Nizam India Hyderabad, Advisor-HMA Hyderabad is the headquarters of the South mumbled and grumbled but agreed to pay Central Railway. But scarcely can anybody for the railways, which was named as the being merged with the erstwhile dominions imagine that the Nizam of Hyderabad to Nizam’s Guaranteed State Railway. But of the Nizam. Hyderabad (or rather start with was opposed to the railways and the railways were built by the Great India Secunderabad) became the headquarters would rather not have it around. Reason: Peninsular Railway (GIP). The lines began of the regional railways – called the South his apprehension that the subjects could from Wadi that was in the Gulbarga region. Central Railway which was created in 1966. possibly flee the state with a railway around! That the railway was not built strictly to The British to begin with were not keen to Obviously the Nizam realized that living promote passenger traffic is clear from the start railways (as said earlier) in the Nizam’s conditions were better in neighboring way lines were laid. Most of the lines were dominions but today Hyderabad is the states. All this has been found out from the away from big human settlements. For railway station through which you have research of Mr. Manoj Pande, who retired as instance coming from the west side, the to pass through to reach Chennai (earlier Member of Railway Board. He was posted lines bypassed Gulbarga but passed through Madras), Kochi (earlier known as Cochin) earlier at Hyderabad for a few years when the forest and hilly tract of Vikarabad and and Bengaluru (erstwhile Bangalore). Thus he undertook his investigations. Tandur. Gulbarga, a big town would have coming from the north, from New Delhi, certainly benefitted from the railway in Hyderabad has become the city through The British to begin with were also not keen terms of passenger movement which had which you have to pass to reach these major to start railways in Hyderabad state and little value in relatively forest and rocky southern cities through railways. In fact Hyderabad city, it seems. This because they areas. It may be noted that Gulbarga before Hyderabad is today the city which controls thought the Nizam was a ‘demi savage and Independence was part of the Nizam’s entry to the heart of south India and thus is distrusted him.’ In fact when the railways dominions as were many cities now in the fulcrum of the region. Now Hyderabad is were built they bypassed Hyderabad even northern Karnataka. The expenses incurred also connected to Kolkata (earlier Calcutta) as it connected the three imperial towns of by the railways were to be guaranteed to be through a rail link via Vishakhapatnam. Calcutta, Bombay and Madras. But at a later paid by the Nizams. This meant that there stage it was thought the railways should was no control over the costs of running connect Hyderabad and as you would guess the railways. The Britishers who ran the the reasons were not at all altruistic. The railways had no interest in keeping control British realized that connecting Hyderabad over costs which was anyway paid by the to other places would allow quicker Nizam. The Nizam- the richest man in the movement of troops in times of emergency world- anyway taxed his subjects heavily; so or when soldiers had to be hurriedly sent in effect the poor burdened farmers paid for to Hyderabad. This would enable better the construction of the railways. The British control over Hyderabad which was part of resident in the court of the Nizams was the the Nizam’s dominion. man responsible for running the railways. The Nizam had to pay a heavy cost for It was the British who wanted the running the railway and had often to borrow railways but they made the proposal for money to defray the costs. Incidentally the constructing it in such a way that it seemed costs of running the railway could have been that the Nizam who was seeking railway kept under control if instead of broad gauge (BG) lines meter gauge (MG) lines had been constructed. The colonial administrators knew of this from before but resorted to BG lines because in Bombay region there was already BG. If soldiers coming from there had to change trains it would slower their movement. The railways have come a long way since it was established in this part of the world and especially with the Andhra region -later THE MANAGEMENT REVIEW 11

Business Quiz BUSINESS QUIZ – 17TH EDITION, MARCH, 2021 1. Rosalind “Roz” Brewer is named the new CEO of _________________ making her the only Dr. Chetan Srivastava Black woman to lead a Fortune 500 company. School of Management Studies, 2. ___________ has become one of people’s favourite new service, which started as a Joke University of Hyderabad, Life Member HMA by the farmer named Dot McCarthy on Zoom Calls, turned into a profitable business for McCarthy. 1. Walgreens ( Walgreens and Boot Alliance) 2. “Hiring Goats” to appear on Zoom calls, 3. Appointment of Nigeria's Ngozi Okonjo Iweala as Head of _______________making her first Woman as well as the first African to head this multi-lateral world organisation. especially during office meetings. Her Goats have made global appearances as 4. _____________________ is set to take the new role as CEO and MD of Tata Motors Ltd. from people from all over the world, including 1st July, 2021, replacing the current CEO and MD Guenter Butschek. Australia, Russia, China and the US, opted for this service. 5. Bengaluru based Bombinate Technologies is promoting ______________ messenger/social 3. World Trade Organization (WTO) media app as an Indian equivalent of Twitter. Many ministers have also opened an account 4. Marc Llistosella here. 5. Koo App 6. Saffola [ Saffola Oodles ] 6. Marico is launching instant noodles in direct competition to “Maggi” under ___________ 7. Mumbai brand name. 8. TapChief 9. Sansad TV 7. Birla Institute of Technology & Science (BITS) Pilani is setting up “BITS School of 10. Grupo Bimbo and its Indian Subsidiary - Management (BITSoM)” with an investment of around ₹1,500 Crore over the next five to Ready Roti India. seven years in_______________ city. 8. ____________ is a start-up by Shashank Murali and others, which provides a platform for students to connect with 1000s of senior executives including CEOs for seeking career advice. This start-up is acquired by online learning platform “Unacademy” recently. 9. The Rajya Sabha TV and the Lok Sabha TV channels have been merged into one channel named as ___________. 10 Everstone Capital (Bread and Bakery platform Everfoods Asia) has sold the Modern Foods, the company that makes “Modern Breads” to ______________, a Mexico based company, that claims to be world’s largest bakery company with operations in 33 countries, which entered India earlier by acquiring Harvest Gold. ALL THE BEST 12 THE MANAGEMENT REVIEW

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