A Report on Organization Study conducted at

VRL Logistics Ltd, Bangalore

Submitted By

Brunda M

1BG22BA011

Submitted to
VISVESVARAYA TECHNOLOGICAL UNIVERSITY, BELGAUM

In partial fulfillment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Under the guidance of

INTERNAL GUIDE EXTERNAL GUIDE

Dr. Bhavya Vikas Pushpa V Jadhav

Associate Professor Branch Manager
BNM Institute of Technology VRL Logistics Ltd

Department of MBA

B.N.M. Institute of Technology

An Autonomous Institution under VTU

2022-2024
 AARAY

B.Nel. rstitute of echnology

An Autonomous Institution under VTU 50
Approved by AICTE, Accredited as Grade AInstitution by NAAC.
Alleligible UG branches - CSE, ECE, EEE, ISE & Mech. Engg. are Accredited GOLDEN JUBILEE
Vidyayämruthamashnuthe by NBA for academic years 2018-19 to 2024-25 & valid upto 30.06.2025
Bhegeerath Bai Narayana Rao Maaray
Educational nsttutons
1972-2023

CERTIFICATE
This is to certify that Ms. Brunda M bearing USN 1BG22BA011, is a
bonafide student of Master of Business Administration course of the Institute
of the batch 2022-24. A Report on Organization Study at VRL Logistics
Ltd., Bangalore' is prepared by her under the guidance of Dr. Bhavya Vikas
in partial fulfillment of the requirements for the award of the degree of Master
of Business Administration of Visvesvaraya Technological University,
Belgaum, Karnataka.

Dr. Bhavya Vikas Dr. N Mukund Sharma

Associate Professor Professor & HOD
Internal Guide

Dr. Krishnanurthy G.N.

Principal
Examiner 1:

Examiner 2:

Bengaluru 560070
12th Main, Banashankari 2nd Stage,
Administrative Ofic & Campus: 27th cross, www.bnmit.org
26711780/81 /82 Email: principal(@bnmit.in
Ph: +91 80

Bhagponathi Brie Nivayana RaaMaanay havitis

VRL LOGISTICS LTD
Since 1976

Main Office :
No,4 PampaMahakavi Road
Opp. Kannada Sahitya Parishad
Chamarajpet
BENGALURU $60 018 Karnataka State
Date:02/12/2023 Phones: 080 26992525 26992626
e-mail: [email protected]

Internship Completion Certificate

This is to certify that Ms.Brunda M,a student of MBA III Semester

bearing USN:1BG22BA011 of BNMInstitiute of Technology, Bengaluru
has completed her Internship under the title Organistional Study
with reference to VRL Logistics Limited" for the period of four weeks
starting from 30h October2023 till30" November 2023.

During her association with us, she has demonstrated a keen interest to
learn and her conduct is found to be satisfactory.

For VRL LOGISTICS LIMITED

PUSHPAV JADHAV AxRE WGALURU

M.O.
Ph:2699
MANAGER ADMINISTRATION

Corporate Office: Giriraj Annexe Circuit House Road HUBBALLI -580 029 Karnataka
Phone: 0836 2237511 Fax :0836 2256612 e-mail:
Customer Care : HUBBALLI O 0836- 2307800 e-mail :[email protected]
customercare @vrllogistics.com
Website :www.vrllogistics.com CIN: L60210KA1983PLCO05247 GSTIN (KAR):
29AABCV3609C1ZJ
 DECLARATION

I, Brunda M, hereby declare that the Internship report entitled “Organization study at VRL
Logistics Ltd” prepared by me under the guidance of Dr. Bhavya Vikas, faculty of M.B.A.
Department, BNM Institute of Technology, and external assistance by Ms. Pushpa V Jadhav,
manager at VRL Logistics Ltd, Bangalore.

I also declare that this Report is towards the partial fulfillment of the university regulations for the
award of the degree of Master of Business Administration by Visvesvaraya Technological
University, Belgaum.

I have undergone this internship for a period of four weeks. I further declare that this Internship
report is based on the original study undertaken by me and has not been submitted for the award
of any degree/diploma from any other University/Institution.

Place: Bengaluru

Date: Signature of the Student

 ACKNOWLEDGEMENT

It is my foremost duty to express my wholehearted thanks to my guide Dr. Bhavya Vikas,

Associate professor for her invaluable guidance, support and motivation during the course of this
project work. Her inspiration at every stage of my work has helped me immensely in the
completion of this project work and the preparation of the report.

My profound thanks to Ms. Pushpa V Jadhav, Manager, VRL Logistics Ltd, who took a keen
interest in explaining concepts and imparting necessary inputs about the project work, without
which, it would not have been possible for me to complete this work. I am also thankful to other
executives and staff of the company for their co-operation.

I wish to express my profound gratitude to Dr. Mukund Sharma N, HOD, MBA Department, for
his constant encouragement and guidance throughout the completion of the study.

My special thanks to the faculty members of the department for their constant support and
encouragement, which contributed towards the successful completion of the work.

Last, but not least, I am indebted to my family members and friends for their blessings and
encouragement.

Place: Bengaluru Student Name

Date: Brunda M
 TABLE OF CONTENT

SL. NO TITLE Page No

Chapter 01 Industry profile 01-06

1.1 Type of industry 01
1.2 Meaning 01
1.3 History
02
1.4 Importance
03
1.5 Role
05

Chapter 02 Organization profile 07-23

2.1 Background 07

2.2 Vision, Mission, Business Ethics 08

2.3 Objectives 08

2.4 Board of directors 08

2.5 Competitors 09

2.6 Organizational Structure, awards &achievements 09

2.7 Sectors of VRL 10

2.8 Functional Departments of VRL 13

2.9 Material Handling of VRL 17

2.10 Working of Goods Transportation 19

2.11 Hub & Spoke Model 21

2.12 SWOC Analysis 22

 Mckinsey’s 7S Framework & Porters Five
Chapter 03 Force Model 24-28
3.1 Mckinsey’s 7S Framework 24

3.2 Porters Five Force Model 27

Chapter 04 Analysis of Financial Statements 29-46

4.1 Statement of Profit and Loss 29

4.2 Statement of Balance Sheet 31

4.3 Ratio Analysis 34

Chapter 05 Learning Experience 47-49

5.1 Role in the Organization 47

5.2 Learning Experience 47

5.3 Findings 48

5.4 Suggestions 48

5.5 Conclusion 49

Bibliography 50
 EXECUTIVE SUMMARY

"Wealth, place & power are no measure of sources. The only true measure is the ratio between
what we might have been & what we have become". In this regard people should upgrade their
knowledge & keep in pace with changing technology & market condition to reach their desired
goal. As new opportunities are opening up in the field of infrastructure, industry & allied sector all
over the world. The desired goal can achieve only when both theory and practical go together hand
in hand.

An internship study is such an attempt to understand or link the theoretical concept with that of
practical applicability in an organization. In the field of management practical work plays a vital
role, it is this practical knowledge which drives one to his or her ultimate desire.

The internship training was carried out at "VRL logistics limited" with an aim to know the working
of each and every department of the organization & with respect to various functions like planning,
organizing, & controlling, which scrutinizes the functional departments, highlighting their roles,
interactions, and contributions to the company's overarching goals.

This project report provides an in-depth analysis of VRL Logistics Ltd, encompassing various
facts crucial to understanding its operations and performance. The report initiates with an
exploration of the logistics industry, outlining its dynamics, challenges, and opportunities. It sheds
light on the competitive landscape.

It's not only the data, it is the way in which we collect the data. So methodology is the sequence in
which the data are collected. The tools for collection of data for the present project work are the
primary data and secondary data. The information furnished in this report has been collected
primary data as well as secondary data. The primary data is collected through the interaction with
the managers, supervisors, drivers, and labors of the company. The secondary data has been
collected from annual reports and company website.
ORGANIZATIONAL STUDY REPORT AT VRL LOGISTICS LTD

CHAPTER 1

INDUSTRY PROFILE
1.1 Logistics & Transportation Industry:
Each segment of the Logistics & Transportation industry including air transport, motor freight,
rail, road and water transportation, logistics providers or couriers and support services is under
pressure for meeting greater customer expectations, improving return on assets, minimizing
operating costs, optimizing capacity and promoting operational excellence. Companies in these
segments have to be at the forefront of adopting new technologies that allow time-specific
delivery and electronic tracking of cargo, For example. In-cab mobile computers and
transponders, as well as satellites are increasingly being used to monitor goods and vehicles
efficiently. Additionally, the increased adoption of just-in-time inventory management by
manufacturers is forcing the freight-transport industry to reshape and meet their demands. In a
rapidly changing environment, it is imperative to ensure that IT investments help rationalize
costs and provide the intelligence to optimize inter-modal flows, both from cargo and freight
route perspective.

1.2 Meaning of Logistics:

Logistics refers to the planning and the execution of a complex operation. This can include
both long term and short term logistics operations. Logistics management is a part of the supply
chain. It involves planning, implementing and overseeing the effective storage of goods and
their transportation from the point of origin until the destination. In other words, logistics
manages forward and reverse merchandise flows. Logistics managers must move products
from their point of origin to their point of sale under optimum conditions, which means
managing inventory, equipment, locations, distributors and costs. A widespread idea prevails
that logistics is the ‘movement of goods’ that is narrow concept. Logistics involves several
other functions such as purchasing, plant location, plant layout, etc., and even the disposal of
wastes. It covers astonishingly varied professional disciplines. They are:

 Facility location
 Forecasting and order management
 Planning
 Transportation: the mode and the route
 Inventory management: all inventories
 Storage and Warehousing
 Protective packaging

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1.3 History of Logistics:

Logistics can be defined as providing the right type of products and services at the right price,
right time and in the right condition. The birth of logistics can be traced back to ancient war
times of Greek and Roman empires when military officers titled as “Logistikas” were assigned
the duties of providing services related to supply and distribution of resources. This was done
to enable the soldiers to move from their base position to a new forward position efficiently,
which could be a crucial factor in determining the outcome of wars. This also involved
inflicting damage to the supply locations of the enemy and safeguarding one’s own supply
locations. Thus, lead to the development of new system which can be related to the current day
system of logistics management.

During the World War II (1939-1945), logistics evolved greatly. The army logistics of United
States and counterparts proved to be more than the German army could handle. The supply
locations of German armed forces were inflicted with serious damages and Germany was not
able to wreak the same havoc on its enemy. The United States military ensured that the services
and supplies were provided at the right time and at the right place. It also tried to provide these
services when and wherever required, in the most optimal and economical manner. The best
available options to do a task were developed. This also gave birth to several military logistics
techniques which are still in use, at best in a more advanced form.

Logistics has now evolved itself as an art and science. However, it cannot be termed as an exact
science. Logistics does not follow a defined set of tables nor is it based on skills inherited from
birth. A logistics manager performs duties and responsibilities based on the educational
experiences and intuition. These skills are nourished by a constant application of same by them
for betterment of the organization. The logistics manager ensures that the company is benefited
by an effective and efficient system of logistical management. He also needs to ensure that the
right kind of products and services are provided at the right time and for a right price, whether
inside the organization’s premises or delivery of shipments outside the premises of the
organization.

Logistics has come to be a kind of relief for many organisations that formerly looked upon it
as a burden. Companies nowadays are hiring people with the requisite knowledge to deliver
sustainable enhancements in the field of supply chain management. As it has been the case
throughout most of logistics history, the task of a logistics manager involves a clear vision and
a drive within to deliver results under strict deadlines in addition to his usual responsibilities.

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1.4 Importance of Logistics:

Logistics industry in India, considered to be the lifeline of the country, holds unprecedented
importance as it connects various markets, suppliers and customers dotted across the country,
and has now been firmly embedded as an integral part of the national GDP value chain. A
recent study by the National Council of Applied Economic Research (NCAER) in 2022
suggests that, Logistics companies are undoubtedly a crucial engine for the Indian
economy, directly contributing a significant 7.8-14% to GDP and playing a key role in enabling
growth across different sectors. The government's focus on reducing logistics costs is expected
to further enhance their contribution in the future. The Indian logistics sector provides
livelihood to more than 22 million people. The logistics industry is highly fragmented and
consists of multiple active players which include large scale domestic players, leading global
players and emerging start-ups specializing in e-commerce deliveries. Infrastructure readiness
and technology are expected to be the key drivers of growth for the Indian logistics industry.
The growth in logistics sector is expected to be driven by increasing penetration of products
into more cities and towns, as well as the growth of economic activity and manufacturing
moving to these towns. In addition, the demand for value-added services from consumers
provides opportunities for the Industry players to elevate themselves from an operational role
to a more strategic one. The logistics sector has witnessed robust growth with the highest share
in the freight forwarding market, followed by the warehousing, courier parcel, and express and
value-added services markets. The Indian freight and logistics market is evolving, keeping in
line with the technological and infrastructural developments and various policy reforms taken
by the government, including the introduction of e-way bills, fast-tag, -invoicing, and GPS-
based toll collection. The National Logistics Policy (NIP) is aimed at streamlining and
strengthening India's logistics sector, promoting the seamless movement of goods across the
country, and increase the ease of doing business for players in the sector. The traditional
logistics industry in India is witnessing a significant shift toward digitization and contactless
operations due to the COVID-19 pandemic. The robust growth in manufacturing envisioned
through the "Make in India" initiative will demand high levels of logistical efficiency, which
means that goods must be produced and efficiently transported to markets at reasonable prices.
The deeper penetration into Bharat (Tier II, III & IV towns), economy enhancing initiatives,
GST implementation and other initiatives such as Make in India, Digital India and the National
Logistics Policy, all hold a promise for an efficient and integrated logistics industry in the days
ahead. The Multi-Modal Logistics Parks (MMLPs) policy is a key policy initiative of the

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Government of India to improve the country's logistics sector. This initiative will lower freight
costs, reduce vehicular pollution and congestion, and cut warehouse costs to promote domestic
and global trade. The government is also focusing on strengthening the market in terms of
competition, reduced freight rates and barriers, and technological developments. The
agricultural, retail, and manufacturing sectors are boosting the country's freight and logistics
industry With the aforementioned efforts It is hoped that in the next 5 years the targets set by
the National Logistics policy to improve India's ranking in Logistics Performance Index to 25
will ensure that the Logistics sector serves as an engine of growth and a key driver for
transforming India to a 5 trillion dollar economy Road transportation is highly fragmented: The
approximately $ 110 billion market in India can be divided into full truck load (FTL) and less
than a truck load (LTL-which is 35 percent of the road transportation market). Owners of fewer
than five trucks provide more than half of all goods vehicles on the road. Platformization
provides the optimal means to aggregate such a fragmented market and better utilize trucks.

Logistics Company are answerable for the development of merchandise, natural substances,
and completed items starting with one area then onto the next. India being an immense country,
both demographically and topographically, its economy is vigorously dependent on the
effective and convenient development of merchandise the nation over.

A couple of central issues on how operations organizations in India assume a critical part in
deciding the Indian economy are examined underneath

1. Framework improvement:

To productively get labor and products across nations, coordinated operations organizations
put resources into building framework like stockrooms, transport offices, and innovation
frameworks. This adds to the country's monetary advancement by working on the productivity
of the store network and decreasing coordinated operations costs.

2. Cost decrease:

Operations organizations generally think of advanced courses and methods of transportation,

bringing about decreased transportation costs. This, in the end diminishes the general expense
of products, making them more reasonable for purchasers. Lower expenses can likewise make
Indian items more serious in the worldwide market, adding to expanded sends out.

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3. Business age:

The operations business gives immediate and backhanded work to a huge number of
individuals. This emphatically affects the country's economy by setting out work open doors
and working on the way of life.

4. Advancing products:

Strategies organizations assume a basic part in working with the commodity of products from
India to different nations. They assist organizations with getting to global business sectors,
offer help in gathering administrative prerequisites, and guarantee the ideal conveyance of
products. This emphatically influences the country's unfamiliar trade income and financial
development.

5. Supporting homegrown utilization:

Coordinated factors organizations empower the development of merchandise inside India,

making it workable for organizations to get to homegrown business sectors and for customers
to get to many items. This assists with supporting homegrown utilization and financial
development.

6. Unfamiliar venture:

The widening of the strategies business has drawn in unfamiliar interest into the Indian
economy. A few unfamiliar coordinated factors organizations have entered the Indian market
with their new innovations, mastery, and ventures.

1.5 Role of Logistics:

Transportation Logistics:

Transportation alludes to the exchange of products from the inventory network's starting point
to the last buyer. Since products are seldom delivered and consumed in a similar spot, the job
of transportation in strategies chain is vital. Except if it is shipped to the utilization point, an
article fabricated at one area has almost no worth to the expected client. Any inventory
network's prosperity relies on how well it utilizes transportation. To expand benefits, each
business utilizes different transportation strategies and courses.

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Business Logistics:
It is said to be a group or batch related work that involved in storing of goods-information from
raw materials to final consumer, it is a concept of grouping them together and managing them
as system.

Production Logistics:
It is sector which operates with in an industry, here the term used in workstation is from right
quantity & right quality at right point of time.

Reverse Logistics:
The reverse provision method includes the management and the sale of surpluses, additionally
as merchandise being came to vendors from consumers. Reverse provision stands for all
operations associated with the application of merchandise and materials. It is "the methodology
of developing with, implementing, and dominant the economical, value effective flow of raw
materials, in-process inventory, finished merchandise and connected data from the purpose of
consumption to the purpose of origin for the aim of recapturing worth or correct disposal.
Different Levels of Logistics Services:

 First party logistics:

A person, company, organization, and requiring movement of a certain goods from point
A to point B basically these are the senders or receiver of the goods.
 Second party logistics:
Companies or organization dealing with the physical movement of goods from point-to-
point B these goods are moved by use of truck, sea, airplane, train.
 Third party logistics:
These are the logistics services that provide additional service apart from moving services
are warehousing, terminal handling, packaging customs broker, and other services.
 Fourth party logistics:
Companies and organization dealing with supervision of supply chain activities of the
client performing management of 3PLs and providing consultant services for the
development of internal logistic system.
 Fifth party logistics:
Companies dealing with latest technologies in supply chain and logistics, focus of
5PLservices is an e- business implementation and activities related to development of
logistics.

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CHAPTER 2

ORGANIZATION PROFILE

2.1 Background:
VRL was founded in 1976 by Mr. Vijay Sankeshwar in Gadag, a small town in North Karnataka
with a single truck and a vision that was way ahead of its time. VRL soon expanded its business
to provide their services in Bangalore, Belgaum and Hubli, after this expansion VRL slowly
widen into a nationally famed logistics and transportation company which presently have
highest fleet owners in India, over 4779 vehicles includes of 381 hi-tech tourist or passenger
buses and 4398 trucks. The company was initially started with transportation of goods and
services, along with that it started a business of courier services in the year 1996 and it started
a travel (buses) called Vijayananda Travels, which was operating in Karnataka state only. Over
period later on VRL travels business was also operated through Karnataka, Maharashtra and
Tamilnadu.

Over the years, VRL has pioneered in providing a safe and reliable delivery network in the
field of parcel service. The company has also a fast express cargo service, the company recently
started Air charted business in 2008 and they have purchased premier aircraft for the
company’s special work purpose, commercial use, and VIP transportation and advertisement
purpose. The company also owns a social media service called Vijayavani Newspaper and
Digvijaya as news deliver channel, the media sector in a shorter period Vijayavani became
No.1 Kannada newspaper in Karnataka. It also has 3PL and warehousing solutions being
offered as tailor made and cater to unique needs of customers of the industry. With the largest
network in India, the VRL parcel service is indispensable for large number of corporate houses.
This network spans the length and breadth of the country and is supported by large number of
transshipment hubs. VRL operates through a network of 2629 locations and 911 branches,
franchises spreading its services across 25 States and 4 Union Territories. VRL is now
expanding its service to reach even the remote locations of the country.

The efficiency of the fleet of vehicles hinges on all-inclusive state of the art workshop cum
service complex at Hubli, Karnataka. Every vehicle of the fleet passes through this master
service facility so that they are at peak levels of performance, leading to better cost efficiencies
and time management and to meet the growing demand of the customer base.

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2.2 Vision:
To become the premier company that cuts across various segments and emerges as the
torchbearer of each segment that it ventures into.
Mission:
To provide the highest quality service to the customers by continuously increasing cost
efficiency, value potency and maintaining delivery deadlines. To promote team work and
create a work environment that takes care of talent and bring out the best in the employees.
They are committed to produce a top quality supply service systematically at reasonable value
and a continually improve the same to achieve customers and attract on a feasible basis.
Business Ethics:
VRL has a very strong belief that “rules are not meant to be broken” but “rules are meant to be
followed”. Which strengthens the commitment to offer services that put their clients and the
company in a “win-win” situation. They also follow, it is better to be “fair” than to be “good”.

2.3 Objectives of the Organization:

 The main objective of the organization is to make available goods and services to
consumers at a right time with the right quality without delay in service.
 To extend their business and build up their outlets in north states of the country.
 To have fixed assets outlet warehouses in all the metropolitan cities of the country.
 To sustain the No1 position in print media.

2.4 Board of Directors:

1. Dr. Vijay Sankeshwar – Chairman and Managing Director and the promoter of the
company
2. Mr. Anand Sankeshwar – Managing Director and Promoter, supervises marketing
operations
3. Mr. K N Umesh – Prior to his joining the board, he was designated as the chief
Operating Officer of the company
4. Mr. L R Bhat – heads the vehicle maintenance functions of the company
5. Dr. Prabhakar kore – A Non-Executive Independent Director of the company
6. Mrs. Medha Pawar – An Independent Director of the company
7. Dr. Anand Pandurangi – An Independent Director of the company
8. Dr. Ragottam Akamanchi – A Non-Executive Director of the company

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9. Mr. Shankarasa Ladwa – An Independent Director of the company

10. Dr. Ashok Shettar – A Non-Executive Director of the company
11. Mrs. Smriti Bellad – An Independent Director of the company
12. Mr. Gurudas Narekuli – An Independent Director of the company

Key Executives:
1. Mr. Sunil Nalavadi - Chief Financial Officer of the company
2. Mr. Aniruddha Phadnavis – Company Secretary of the company
2.5 Competitors of VRL Logistics and Travels:
 SRS Travels
 KSRTC
 SEA Bird Travels
 Blue Line Travels
 OM Logistics
 DHL Logistics
 APT Logistics
 PILL Logistics

2.6 Organization Structure:

VRL logistics Ltd follows a functional organizational structure. In a functional organization

structure, departments are organized based on their function or area of expertise. This type of
structure is common in large companies because it allows for specialization and efficiency.

Awards and Achievements:

VRL LOGISTICS LTD well known as “VRL" has been a staunch believer of ‘Symbol of
Service' and has become a familiar name in the country and in the state of Karnataka with more
than 600 branches all over the country. The company has been making all the efforts to have
its own infrastructure facilities like trans-shipment yards, etc., in all the key business places,
by acquiring the immovable properties, the company has already established its own business
activity centers and has also been acquiring land properties. Thus, the group has been acquiring
valuable assets. Managing director of VRL LOGISTICS LTD Sri V.B.Sankeshwar has been
awarded, "Udyog Ratna Award" in 1994, "Sarge Ratna Award" in 1998 and "Vishveshwarayya
Navaratna Award "in 2003.

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2.7 Sectors of VRL LTD:

2.7.1 VRL Express Cargo and Courier Service (Logistics):

“On time, Every Time”,

Delivery on time with zero excuses. This mantra is driving force behind the success of VRL
Courier Services. A subordinate of VRL group, VRL cargo inaugurated its business system as
transportation within Hubli and Gadag, later has developed over Bangalore and Belagavi. It
has spread into courier services and express cargo, they are now currently located at 25 states
administration over 2.16 Cr of cargos per year, it has one of the big networks in the country.
Capitalizing on the synergy of the transport network that connects all over Karnataka, we are
into courier services focusing on delivering documents and small parcels in time bound
manner.

Figure 2.7.1

2.7.2 VRL Travels:

“At the forefront of passenger transport”,

Vijayananda Travels is the tour operation division of VRL. It is the market leader among the
tourist bus operators in Karnataka and Maharashtra. It operates a huge fleet of buses on more
than 200 routes and is supported by a network of 80 branches and 1300+ agents. It has grown
tremendously in tour business and pioneered the introduction of Hi-Tech buses on routes
leading to remote parts of Karnataka, it occupies transports which includes 53 Volvo transport
and 9400XL and 9400PX multi-hub models which covers 6 states and gripping over 350
directions in India.

Figure 2.7.2

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2.7.3 VRL Aviation sector:

“From the tarmac to the skies”,

VRL has set off a new journey. In the primary phase, VRL has acquired a brand new, Premier
Jet 1A aircrafts, manufactured by Hawker Beechcraft Corporation, USA. It offers luxurious
comfort and the freedom to fly at a whim. This coupled with the legendary VRL linkage, this
venture will certainly touch the skies. In the year 2008 VRL commenced of operating Indian
Airlines services under the Indian air operative permits (for tourist charter).

Figure 2.7.3

2.7.4 VRL Media:

“Anytime Anywhere”,

VRL group’s flagships entity. VRL media limited started with newspaper called “Vijaya
Karnataka” in October 2000 and it was sold to Times group on June 16 2006, later the chairman
of VRL started “Vijaya Vani” on 1st April 2011, which is now at leading distributor newspaper
in Karnataka. In April 2017 VRL group came up with news channel called “Digvijaya” 24x7,
it is a Kannada Television ongoing.

Figure 2.7.4

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2.7.5 3PL Solutions and Warehousing:

“Tailor made Multi-Locational services”,

VRL facilitates a 3PL solutions and warehousing facility. It has outlined tailor-made favor in
both the categories. As it has the most organized network, large number of clients, its presence
is literally crucial in the corporate world this is the foremost basic style of a 3PL supplier. They
would perform activities such as packaging, warehousing and distribution these are the most
basic functions of Logistics.

Figure 2.7.5
Terms Used In Logistics:

 Consignments: VRL will transport all types of goods like cloth, medicines electrical
parts, motors parts, stationary etc.
 Consigner: A consigner is the party who books the consignment for transport through
VRL.
 Consignee: A consignee is the party who takes delivery of goods booked on
presentation of his copy of waybill

Types of Risk Beard:

 Carriers Risk: Explains that all risks are borne by the transporter while in transportation.
 Owner Risk: Makes the transporter unliable from all risk.

DEPT. OF BUSINESS ADMINISTRATION, BNMIT 12 | P a g e

ORGANIZATIONAL STUDY REPORT AT VRL LOGISTICS LTD

2.8 Functional Departments of VRL Logistics:

Order Processing
Inventory Control &
MIS Department Packaging

Warehousing
Accounts & Book
Keeping Functional
Departments of
VRL Logistics
Transportation
Finance
Department

Material Handling
HR Department

Figure 2.8

2.8.1 Order Processing:

It is a logistical function followed in picking, packaging and delivery of packed items to

shipping carrier which is known as order processing, it is the process of tracking of orders till
they reach final shipment stage. It is the function followed by VRL Logistics because as it has
immediate association with the request or the execution process duration which shows a time
when order is picked and when it has reached the client,

 This function had helped company to reach a high level of customer service and to build
a trust in their mind about the company Pre-order phases such as; Research, purchasing,
pricing etc.
 Post order phases such as; Shipment tracking packaging, payment dealing etc.

DEPT. OF BUSINESS ADMINISTRATION, BNMIT 13 | P a g e

ORGANIZATIONAL STUDY REPORT AT VRL LOGISTICS LTD

2.8.2 Inventory Control & Logistical Packaging:

Inventory control is a function flowed for maintaining the stocks and to control the wastages
in the business. It is basically an activity of striking a consistency between the client’s
importance and for not losing the market opportunity and clients. The normal cost of conveying
stock shifts from 10 to 25% of aggregate stock of every year.
Logistical Packaging is a function where a security is given to a product in order to avoid
damages while transportation. While packing the products there are some polices where
followed off before packaging of the product the ‘transit packaging’ is done for which
transportation is done through shipping containers. Materials used for logistical packaging are
Cardboard box, Air bubbles, cages (vehicle transportation), Shrink wraps, and Anti-slip mates.

2.8.3 Warehousing:
It is a function where all the manufactured finished products are kept in one place until they
get sold out, it is a place where product is stored in bulk numbers until they get distributed.
VRL has a private warehouse throughout the country, which is followed for longer
transportation of goods, warehousing is done for storage of goods which are not needed
immediately.

2.8.4 Transportation:
In the transportation sector cost is the most important thing in choice of method of
transportation, that may be road or air ways which relaying upon framework of transportation
in national or local. VRL operates a goods transportation and the passenger transportation
vehicles over almost all the regions of India building a coordination and for development of
commodity from producer to purchaser.

2.8.5 Material Handling:

Materials handling is one of the important aspect in the logistics industry. The materials should
be carefully handled without damaging. The organization can use several equipment’s which
help on safe handling. Labors are not skilled they should be given some basic training. It is
function which is almost followed in warehousing sector it is purely not of manpower, it is a
work which is done with the help of machines. The speed of stock improvement over a stock
network relies on material dealing with technique, where technology has been helped in
avoiding damages of goods while shipment stage. The technology of robotization in material
handling had been helped a lot to handle goods for fast shipment within a warehouse.

DEPT. OF BUSINESS ADMINISTRATION, BNMIT 14 | P a g e

 ORGANIZATIONAL STUDY REPORT AT VRL LOGISTICS LTD

2.8.6 HR Department:
It is heart of VRL LOGISTICS LTD group. It is department where matters relating to
Recruitment, settlement of grievances etc. taken place. A well experienced person any manager
of personnel department looks it after its activities are spread out over large area, some are:
 Employment
 Well force of employees
 Facilitating for provident fund gratuity
 Facilities of ESI
 Matters relating to leave, salary, bonus etc.
 Improving employer employee relation
 Providing facility to relating employer or by termination

2.8.7 Finance Department:

Finance department is concerned with the essential finance activity for organization to carry
out activities in effective way. This helps the organization to achieve soundness in working &
dealing with others is required from the beginning of organization & further for successive
stages. The finance department plays a crucial role in the success of VRL Logistics, overseeing
the company’s financial resources and tax obligations. The finance team analyzes the
company’s financial performance prepares budgets and forecasts, identifies potential financial
risks and opportunities and also helps in identifying trends and make informed decisions. The
company uses various financial ratios and metrics to assess its profitability, liquidity and
solvency. The finance team is also involved in preparing accurate and timely financial reports
which helps in identifying areas for improvement and make adjustments to its financial
strategies.
The following are the objectives of finance department;

A. Maintenance of liquid assets.

B. Profit maximization:

1. Increase in revenue

2. Controlling costs

3. Minimizing risks.

C. Wealth maximization.

DEPT. OF BUSINESS ADMINISTRATION, BNMIT 15 | P a g e

ORGANIZATIONAL STUDY REPORT AT VRL LOGISTICS LTD

The functions of the department is been grouped as,

1. Maintaining of cost accounts.

2. Planning of funds.

3. Preparing of financial statement.

4. Evaluation of financial performance.

5. Arranging for internal as well as external audit.

The general manager of finance heads this department. Under his control there are 12
employees' who handled entire financial transactions in Bangalore division. They will maintain
records to pertaining to Bangalore division only. Preparation of final statements of whole
company is done by the head office, which is situated in Hubli.

2.8.8 Book Keeping:

The company’s accounting system is based on the accrual basis of accounting, which means
that revenues and expenses are recognized when they are earned or incurred, regardless of when
cash is received or paid. The company’s accounting system is follows double entry, which
means that every transaction is recorded twice; a debit and a credit entry. This system helps to
ensure that the company’s financial records are accurate and complete. The accounting
department is responsible for recording all of the company’s financial transactions, including
sales, purchases, payroll and taxes. The department also prepares financial statements such as
balance sheet and income statement with the help of software book-keeping applications, which
are used to track the company’s financial performance. They have a book system as well as
computerized system booking statements contains C/N number, weight destination & amount
of consignment, branch and date.
Debit Voucher: It is a voucher where any expenditure made by the staff is maintained. It is
attached to cash statement & sent to the head office to claim the amount.

Credit Voucher: This is the voucher which is given to the sub branches or agencies while
submitting the accounts, the issue booking statements along with total amount to this branch.

Complaints Register: It is a book where entry of customer complaints such as late delivery,
misplacement or improper courier is noted.

Non Delivery Book: It is a book where non-deliveries are noted is case of door locks, shifts,
transfers, incomplete address or party refusal parcel is brought back. Entry is done in this book.

DEPT. OF BUSINESS ADMINISTRATION, BNMIT 16 | P a g e

ORGANIZATIONAL STUDY REPORT AT VRL LOGISTICS LTD

2.8.9 MIS Department:

The company has well equipped information system, which serves the information needs.
Local area network (LAN) connects the computers. The operating system used is windows
2000, and various applications used are,
• Customer Relationship Management (CRM)

• Enterprise Resource Planning (ERP)

• MS-OFFICE

• SAP

The skill required to operate the applications varies depending upon the functions for which
application is used. This department provides required information for all the departments as
and when demands. The efficiency of whole organization is solely depends on, how well its
information resources are maintained.

2.9 Materials Handling in VRL Logistics Ltd

Materials handling is one of the important aspect in the logistics industry. The materials should
be carefully handled without damaging. The organization can use several equipment’s which
help on safe handling.

The equipment’s used in VRL Logistics Limited are as follows.

 Fore clip:
This is used to lift the goods and move from one place to another place. This can lift 5
to 6 tonne weight.

Figure 2.9.1

DEPT. OF BUSINESS ADMINISTRATION, BNMIT 17 | P a g e

ORGANIZATIONAL STUDY REPORT AT VRL LOGISTICS LTD

 Hydraulic trolley:
Hydraulic trolley is used by the labours to transfer the goods from one place to another
place. Here the goods are kept on the pallet and then with help of this trolley they can
lift that pallet to move the goods. This can lift 3 to 4 tonne weight.

Figure 2.9.2

 Handle vehicle:
It can lift up to 2 tonne which can be pushed or pulled by labours to move the goods.

Figure 2.9.3

 Pallet:
It is used to keep the materials, which is then lifted to move more goods at a time. It
can be lifted by both hydraulic and fore clip.

DEPT. OF BUSINESS ADMINISTRATION, BNMIT 18 | P a g e

ORGANIZATIONAL STUDY REPORT AT VRL LOGISTICS LTD

Figure 2.9.4

 Crane:
Crane is used to load the goods of large quantity and huge weight. All the major hubs
are provided with cranes.

Figure 2.9.5

2.10 Working of Goods Transportation

Transhipment point is important section of VRL group, where in all the materials which are
booked from the offices all around the country, whose destination is the area under Bengaluru
branches are bought in, sorted out, stored then sent to their respective destinations within two
days, however the goods that are to be claimed by the consignee have a demurrage period of
thirty days.
There is 110 staff working at Transhipment point as well as 250 contracted labourer’s working
day and night around thirty- forty labourers working in each batch. The Transhipment point
has the following departments:
 Booking section
 Vehicle and accounts maintenances section
 Delivery section

DEPT. OF BUSINESS ADMINISTRATION, BNMIT 19 | P a g e

ORGANIZATIONAL STUDY REPORT AT VRL LOGISTICS LTD

 Short excess section

 Booking section: At the booking office the booking of the goods to be transhipped are
made. There are thirty plus people working in this section, these peoples are normally
sent for collection, making and continuing of the goods, and looking after the clerical
work in this section. The main function of the booking section is to take the goods from
the consigner and weighting them. Then the freight price is fixed for the goods are sent
to the transhipment point for the delivery. Freight rates are varied according to the
distance covered, nature of the goods, season, condition of the roads, type of goods to
be transhipped and risk involved in it.

 Vehicle and Accounts maintenances section: This section basically deals with load
management as well as with some of the miscellaneous accounts. Where the vehicle in
charge has to perform the basic function of tallying the total market load that is with
them in accordance with the availability of trucks, normally there is a deficit in the
availability of trucks, which is fulfilled by hiring trucks from outside.

 Delivery section: All the goods collected at different booking office are to be
transported are all bought to the transhipment point. These goods are then separated,
sorted and according to destination to which they are to be sent.
These goods are then sent to their respective destinations and the delivery offices in that
area unloads the goods and delivers to the consignees. For goods more than two tones
or hundred cartoons boxed, there is availability of free door delivery.

 Short excess section: While loading the goods sometimes the goods are loaded in
excess or may fall short this will be at their destinations when verified.
In case the excess goods are not claimed, these goods are sent to the search and found
department. If the goods are sent on to pay basis and nobody claims, the company has
a right to sell the goods and make good its loss.

DEPT. OF BUSINESS ADMINISTRATION, BNMIT 20 | P a g e

ORGANIZATIONAL STUDY REPORT AT VRL LOGISTICS LTD

2.11 HUB AND SPOKE MODEL OF FREIGHT DISTRIBUTION AT

VRL LOGISTICS:

Under the Hub and Spoke system, VRL transhipment yards act as hubs and the various booking
and delivery offices act as spokes. The hub acts as a connector between the booking office and
the deliver office. The hub receives the booking consignments from various branches, which
are segregated based on the destination and then dispatched directly to the delivery office or to
the other hub, which connects to the delivery office.

Once consignments are booked at the spoke they are unloaded at the nearest hub based on the
destination of the consignment. Once the unloading of a certain number of trucks is complete,
all the consignments meant for a particular destination are aggregated and loaded into a truck
for further transportation. This ensures that every truck is filled to capacity and its utility is
improved. In case a hub does not have enough consignments for a particular destination, the
goods are unloaded onto the next nearest hub to be further aggregated at that hub en-route to
the destination.

The processes followed by the company are designed to meet the various business objectives
such as simplicity in understanding and implementation, effective information capture of a
particular transaction, traceability of goods, automatic internal controls, etc.

In the transhipment hub the goods which are to be delivered to other destinations are stored.
The space of the warehouse in Bengaluru is 40,000 sq. feet. The total space which is called as
carpet area is around 60,000 sq. feet. The warehouses are not well organised. The goods which
are unloaded are brought and kept in the respective places. There no separate compartment or
racks for the goods to store, which may lead to misplacing of the goods.

The total capacity of the transhipment is around 1500 tonne to 1800tonne. There are 43
transhipments throughout India. As explained above they are divided in to major, mid, and
small size hubs.

 Store-room for automobile parts:

They have entered an agreement with Ashok Leyland for the supply of automobile spare parts
and units in the Vehicle Maintenance Department for the maintenance of the vehicles. As per
the agreement, they have provided the space to Ashok Leyland admeasuring 1000 sq. Feet their
workshop for the storage of spare parts and units. These spares parts are available to them at

DEPT. OF BUSINESS ADMINISTRATION, BNMIT 21 | P a g e

ORGANIZATIONAL STUDY REPORT AT VRL LOGISTICS LTD

discounted rates. The spare parts are used as and when required by them and payment done on
a weekly base.

This eliminates the cost of maintaining the inventory, cost of transport incurred in procuring
the spare parts at the same time ensuring timely availability of spare parts. There are 6 branches
throughout India and all of them are computerised.

 Store-room for tyre section:

The company uses mainly four types of tyres. They are J K tyre, Apollo tyre, Bridgestone tyre,
and China tyre. They prefer Apollo tyres. The minimum stock maintained is 100 tyres and
maximum is 6000 tyres. They use their trucks only for the transportation of tyres.

 Store-room for stationery department:

The stationary items which are required for the office use are printed in their printing presses
only and stored in the store houses. There are four printing presses throughout India. They store
400 items these store rooms. These store rooms are located in Hubli, Bangalore, Delhi, Kanpur,
Vijayawada, and Ludhiana.

2.12 SWOC Analysis:

Strengths Weakness

SWOC

Opportunites Challenges

Figure 2.12

DEPT. OF BUSINESS ADMINISTRATION, BNMIT 22 | P a g e

ORGANIZATIONAL STUDY REPORT AT VRL LOGISTICS LTD

1. STRENGTHS:
 The business has wider networking branches and connection throughout the
country
 The company is having a very good brand image in customers mind
 It is having a very effective internal or fleet management system
 Employees, as well as customer’s suggestions are considered with special care,
this made the company to get loyal customers as well as employees.
 It is maintaining an excellent service in the form of providing adequate facilities
by following competitive pricing.

2. WEAKNESS:
 The company has a limited use of advanced technologies for development
 They are still lagging in implementation of modernized in travel and logistic
transportation system
 Low advertisements compared to competitors advertisements

3. OPPORTUNITIES:
 Geographical expansion by expanding their business in the northern part of the
country
 To enter the worldwide dispatch rider and courier services
 E-commerce growth
 Increasing outsourcing trend

4. CHALLENGES:
 More number of competitors and their high commission rates
 A rise in fuel prices would adversely affect their operations and profitability
 Government taxes and regulatory challenges
 Unethical marketing practices of private brands

DEPT. OF BUSINESS ADMINISTRATION, BNMIT 23 | P a g e

ORGANIZATIONAL STUDY REPORT AT VRL LOGISTICS LTD

CHAPTER 3

MCKINSEY’S 7S FRAMEWORK & PORTER’S FIVE FORCE MODEL

3.1 Mckinsey’s 7s Framework:

STRUCTURE

STRATEGY SYSTEMS

SHARED
VALUES

SKILLS STYLE

STAFF

Figure 3.1

The Mckinsey’s 7s framework is a strategic management tool that analyzes various aspects of
an organization to understand its effectiveness. It assesses seven interconnected elements
within an organization.

I. Strategy:
VRL Logistics Ltd.’s has a clear strategy focusing on providing efficient logistics and
transportation services across India. They have a strong presence in surface transport,
air cargo and logistics parks. The strategy appears to prioritize expansion into new
markets and enhancing service offerings. It assesses how well the strategy aligns with
the overall goals and objectives of the company.

II. Structure:
VRL logistics operates with a well-defined hierarchical structure, ensuring clear lines
of authority and responsibility with its division. The company’s organizational structure
seems to be a decentralized structure likely reflects its diverse operations. It consists of
various divisions, departments and a hierarchy of management.

DEPT. OF BUSINESS ADMINISTRATION, BNMIT 24 | P a g e

 ORGANIZATIONAL STUDY REPORT AT VRL LOGISTICS LTD

Top Management

Functional
Departments

Goods Passenger Travels & Warehousing Finance & Information Supporting

Human
Transport Transport Tours & Distribution
Accounts Technology Functions
Division Resources
Division Division Division

- Zonal Heads - Zonal Heads

-Branch Heads -Branch Heads -Head of -Head of
-Head of -Head of -Head of
-Fleet -Fleet Travels & Information -Legal &
Warehousing Human Finance &
Management Management Tours Technology Compliance
& Distribution Resources Accounts
-Operations & -Operations & -Marketing & -Systems -Corporate
-Warehouse -Recruitment -Treasury &
Safety Safety Sales Development Social
Managers & Training Taxation
& Responsibility
-Marketing & -Marketing & -Operations & -Logistics & -Employee -Internal Maintenance
Sales Sales Customer -Internal
Distribution Relations & Audit &
Service -Network & Audit
-Customer -Customer Personnel Welfare Control
Data Security
Service Service

III. Systems:
VRL logistics utilizes modern systems and technology for tracking and managing its
fleet, logistics operations and customer orders. Their systems support efficient service
delivery and communication which emphasis on real time monitoring.

IV. Shared values:

VRL Logistics appears to prioritize values such as reliability, timeliness, customer
satisfaction and safety in its operations and service oriented approach. These shared
values guide the company’s decision making and its operations.

DEPT. OF BUSINESS ADMINISTRATION, BNMIT 25 | P a g e

 ORGANIZATIONAL STUDY REPORT AT VRL LOGISTICS LTD

V. Skills:
The company’s employees possess a range of skills, including logistics management,
transportation expertise and customer service. Training and development of skills are
essential to maintain and enhance such skills.

VI. Staff:
VRL logistics employs a large competent workforce involved in various aspects of its
operations, from drivers to management professionals. Hiring and retaining skilled staff
play a vital role in the organization. Staff dedication and commitment to meeting client
needs seem evident. Currently the total number of permanent employees in the
company, particularly in Bangalore division is 270. As the operations is done for the
whole day, a shift system is maintained, the employees work in 3 shifts.

VII. Style:
The leadership style within VRL Logistics appears to be a blend of participative and
hands on approach fostering a culture of accountability and efficiency, especially at the
top management level, likely emphasizes efficiency, safety and customer centric
operations.

DEPT. OF BUSINESS ADMINISTRATION, BNMIT 26 | P a g e

ORGANIZATIONAL STUDY REPORT AT VRL LOGISTICS LTD

3.2 Porter’s Five Force Model:

Figure 3.2

Porter’s 5 force model is a framework for analyzing the competitive forces within an industry.
VRL logistics competitive position is influenced by its ability to manage these forces
effectively, adapt to changes and continue to provide efficient and reliable logistics services to
its customers.

1. Threat of new entrants:

The threat of new entrants in the logistics and transportation industry typically requires
substantial capital investments in fleets, infrastructure and technology. VRL Logistics
Ltd already has an established presence and a wide network have a competitive
advantage, making it challenging for new entrants to compete effectively. Thus, the
company has low threats of new entrants. However, new entrants might find niches or
innovate to enter the market.

DEPT. OF BUSINESS ADMINISTRATION, BNMIT 27 | P a g e

ORGANIZATIONAL STUDY REPORT AT VRL LOGISTICS LTD

2. Bargaining power of suppliers:

VRL Logistics Ltd relies on suppliers for various inputs such as vehicles, spare parts
and fuel. While there are multiple suppliers in these markets, the company’s large scale
of operations may give them some bargaining power to negotiate favorable terms. Thus,
the company has relatively low to moderate bargaining power of suppliers. However,
the company’s scale and relationships with suppliers could influence the power
dynamically.

3. Bargaining power of buyers (customers):

Customers in the logistics and transportation industry often have choices and they can
compare services and prices and can choose from multiple logistics providers, and the
quality of service and pricing are crucial factors in their decision making. However,
VRL Logistics has built a reputation for reliability and efficient services, which may
give them some power in negotiations.
Thus, the bargaining power of buyers or customers is having a moderate effect.

4. Threat of substitutes:
The threat of substitutes is relatively low as VRL logistics operates in a specialized
sector. For certain transportation needs alternatives like in-house transportation, but the
company’s extensive network and services can mitigate this threat.

5. Rivalry among existing competitors:

Competition in the logistics industry is relatively high, with numerous players offering
similar services. VRL Logistics competes with both established players and regional
competitors. The industry is price sensitive and there is a constant drive for efficiency
and cost management.

DEPT. OF BUSINESS ADMINISTRATION, BNMIT 28 | P a g e

ORGANIZATIONAL STUDY REPORT AT VRL LOGISTICS LTD

CHAPTER 4
ANALYSIS OF FINANCIAL STATEMENTS
4.1 Statement of Profit and Loss of VRL Logistics Ltd

DEPT. OF BUSINESS ADMINISTRATION, BNMIT 29 | P a g e

ORGANIZATIONAL STUDY REPORT AT VRL LOGISTICS LTD

Income Statement
350 323.2

300

250
Amount in Cr

200
PROFIT

160.11
150
90.11 91.92
100
45.07
50

0
Mar 23 Mar-22 Mar-21 Mar-20 Mar-19
YEARS

Figure 4.1

Table 4.1: Table showing the Trend Percentages of VRL

Logistics Ltd for the past 5 years
Mar Mar Mar Mar Mar
PARTICULARS 23 22 21 20 19
Profits For The
323.2 160.11 45.07 90.11 91.92
Period
Trend Percentages 351% 174% 49% 102% 100%

Interpretation of Income Statement:

 Comparing 5 years profit i.e. 2019, 2020, 2021, 2022, 2023 there is a trend percentage
line which shows increase in the profits during the past 5 years (assuming base year as
2019).
 In the year 2021 they have earned less profit, has it was the period of pandemic (covid-
19) due to which there were no operations held.
 The profits has been increased due to the better operating margins and increase in
revenue from operations.
 The discontinued operations are wind power business on 10th Jan 2023 and buses
operation business on 25th Jan 2023 on slump sale basis.
 The company clocked the highest ever revenues in this fiscal year as compared to earlier
years with better profit margins. The improvement in turnover is on account of Growth
in Good Transport segment which is the major segment in the operation. Revenue from
operations also stabilized post covid.

DEPT. OF BUSINESS ADMINISTRATION, BNMIT 30 | P a g e

ORGANIZATIONAL STUDY REPORT AT VRL LOGISTICS LTD

4.2 Statement of Balance Sheet of VRL Logistics Ltd

BALANCE SHEET OF VRL LOGISTICS LTD

(In Rs. Cr.)

PARTICULARS Mar-23 Mar-22 Mar-21 Mar-20 Mar-19

I. EQUITIES AND LIABILITIES:

SHAREHOLDER'S FUNDS
Equity Share Capital 88.34 88.34 88.34 90.34 90.34

Reserves and Surplus 887.5 563.29 508.8 526.53 555.59

TOTAL SHAREHOLDERS FUNDS 975.84 651.63 597.14 616.87 645.94

NON-CURRENT LIABILITIES

Long Term Borrowings 107.32 81.4 39.48 95.02 103.36

Deferred Tax Liabilities [Net] 46.12 38.62 44.01 44.04 73.77

Other Long Term Liabilities 428.2 314.36 238.69 195.6 14.43

Long Term Provisions 28.09 29.1 20.7 20.79 16.44

TOTAL NON-CURRENT 609.73 463.48 342.87 355.45 208

LIABILITIES
CURRENT LIABILITIES
Short Term Borrowings 71.78 62.08 64.23 70.66 27.36

Trade Payables 14.21 20.06 13.55 3.46 6.11

Other Current Liabilities 204.94 168.83 168.28 164.83 80.44
Short Term Provisions 15.23 14.2 12.5 13.93 9.98

TOTAL CURRENT LIABILITIES 306.15 265.18 258.57 252.89 123.88

TOTAL CAPITAL AND 1,891.73 1,380.28 1,198.58 1,225.21 977.82

LIABILITIES

DEPT. OF BUSINESS ADMINISTRATION, BNMIT 31 | P a g e

ORGANIZATIONAL STUDY REPORT AT VRL LOGISTICS LTD

II. ASSETS:

NON-CURRENT ASSETS

Tangible Assets 1,481.17 1,096.70 951.33 987.12 701.32

Intangible Assets 0.17 0.4 0.64 0.76 1.25

Capital Work-In-Progress 38.37 34.98 6.08 4.39 41.64

Other Assets 0.87 0.89 2.39 2.44 2.49

FIXED ASSETS 1,520.58 1,132.97 960.43 994.71 746.7

Non-Current Investments 0.05 0.05 0.05 0.06 0.06

Other Non-Current Assets 92.23 76.18 61.89 48.9 59.39

TOTAL NON-CURRENT ASSETS 1,612.86 1,209.20 1,022.37 1,043.66 806.15

CURRENT ASSETS

Current Investments 15.02 0 0 0 0

Inventories 52.79 45.86 39.51 29.27 29.8

Trade Receivables 81.69 67.26 63.94 85.63 79.53

Cash And Cash Equivalents 75.24 14.49 18.45 13.41 13.14

OtherCurrentAssets 54.12 43.48 54.31 53.24 49.2

TOTAL CURRENT ASSETS 278.87 171.08 176.21 181.54 171.67

TOTAL ASSETS 1,891.73 1,380.28 1,198.58 1,225.21 977.82

DEPT. OF BUSINESS ADMINISTRATION, BNMIT 32 | P a g e

ORGANIZATIONAL STUDY REPORT AT VRL LOGISTICS LTD

Interpretation of Balance sheet:

 The increase in total liabilities is due to the additional borrowings made by the company
to incur capital expenditure.
 Increase in lease liabilities on account of additional premises taken on long term lease
for expansion of the company's operation.
 Shareholder's funds have shown a consistent value, indicating stable equity capital and
reserves over the years.
 Non-current liabilities have increased steadily, especially in long-term borrowings and
other long-term liabilities, indicating potential expansion or investment activities.
 Current liabilities have also shown a rising trend, potentially indicating increased short-
term borrowing and higher trade payables.
 Non-current assets have notably increased, particularly in tangible assets, showcasing
significant investments in fixed assets, which could imply infrastructure development or
asset acquisitions.
 Current assets have also shown a consistent growth, with a rise in trade receivables,
inventories, and other current assets, indicating a healthy operational cycle.
 The company seems to be leveraging its financial structure by increasing long-term
borrowings and non-current liabilities, potentially for expansion or growth strategies.
 The increase in current assets might signal a positive outlook for the company's
operational efficiency and liquidity.
 There's a notable increase in cash and cash equivalents, which might indicate a focus on
liquidity or a strategic decision to accumulate cash reserves.
 Investments in non-current assets and a steady rise in current investments imply a balance
between expansion and maintaining liquidity.
 VRL Logistics Ltd appears to be in a phase of growth or expansion, as evidenced by the
significant increase in both non-current assets and liabilities.
 The company seems to be managing its financial structure well, balancing equity, debt,
and asset allocation to support potential growth opportunities.
 Attention might be required to manage the increasing liabilities, ensuring they are well-
backed by the growth and profitability of the company.

DEPT. OF BUSINESS ADMINISTRATION, BNMIT 33 | P a g e

ORGANIZATIONAL STUDY REPORT AT VRL LOGISTICS LTD

4.3 Ratio Analysis of VRL Logistics from the year 2019-2023:

1. Current ratio:
The current ratio is a liquidity ratio that measures a company's ability to pay short-term
obligations or those due within one year. It tells investors and analysts how a company
can maximize the current assets on its balance sheet to satisfy its current debt and other
payables.
Current ratio = Current Assets / Current Liabilities

Table 4.3.1: This table represents the Current Ratio calculation

Current Assets (In Current Liabilities (In
Year Rs.Cr) Rs.Cr) Current ratio
2019 171.67 123.88 1.38 times
2020 181.54 252.89 0.72 times
2021 176.21 258.57 0.68 times
2022 171.08 265.18 0.65 times
2023 278.87 306.15 0.91 times

CURRENT RATIO
1.50
RATIO IN TIMES

1.38
1.00
0.91
0.50 0.72 0.68 0.65

0.00
2019 2020 2021 2022 2023
YEAR

Figure 4.3.1

Interpretation:

The table shows that the company's current ratio has been decreasing over the past five
years, as it means that the company has less ability to meet its short-term obligations.
The company’s current ratio has declined steadily from 1.38 times in 2019 to 0.65 times
in 2022, indicating a diminishing ability to meet its short-term obligations with its
current assets. There are number of possible reasons for this decline. The possibility is
that the company's current assets have not been growing as quickly as its current
liabilities. This could be due to a number of factors, such as slow sales growth or an
increase in inventory levels, an increase in accounts payable or an increase in short-
term debt.

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2. Quick ratio:
The quick ratio measures a company's capacity to pay its current liabilities without
needing to sell its inventory or obtain additional financing.
Quick Ratio = Liquid Assets / Current Liabilities
Liquid assets = Current Assets – Inventory- Prepaid Expenses

Table 4.3.2: This table represents the Quick Ratio calculation

Year Liquid Assets Current Liabilities (In Rs.Cr) Quick ratio

2019 141.87 123.88 1.15 times
2020 152.27 252.89 0.60 times
2021 136.7 258.57 0.53 times
2022 125.22 265.18 0.47 times
2023 226.08 306.15 0.74 times

Liquid Assets= Current assets- Inventories-Prepaid Expenses

Liquid Assets Current Assets (In Rs.Cr) Inventories (In Rs.Cr)

141.87 171.67 29.8
152.27 181.54 29.27
136.7 176.21 39.51
125.22 171.08 45.86
226.08 278.87 52.79

QUICK RATIO
1.4
1.2
RATIO IN TIMES

1
0.8
0.6
0.4
0.2
0
2019 2020 2021 2022 2023
YEAR

Figure 4.3.2

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Interpretation:
The quick ratio, also known as the acid-test ratio, is a measure of a company's ability
to meet its short-term liabilities with its most liquid assets (assets that can be quickly
converted to cash).
 In the year 2019, the company had a quick ratio above 1, i.e. (1.15), indicating a
healthy ability to cover its short-term liabilities with highly liquid assets, excluding
inventory. This suggests a strong liquidity position.
 In the year 2020, the quick ratio dropped significantly below 1, i.e. (0.60), signaling
potential challenges in covering short-term obligations without relying heavily on
inventory. This may indicate liquidity issues.
 In 2021 and 2022, the quick ratio fell below 0.5, indicating difficulty covering
immediate liabilities with readily available assets.
 In 2023, it shows a positive turnaround, with the ratio increasing to 0.74, suggesting
better short-term liquidity compared to previous years. While the improvement is
good, the ratio remains below the ideal of 1.0.

3. Asset Turnover Ratio:

The asset turnover ratio measures the efficiency of a company's assets in generating
revenue or sales. The higher the asset turnover ratio, the more efficient a company is at
generating revenue from its assets. Conversely, if a company has a low asset turnover
ratio, it indicates it is not efficiently using its assets to generate sales.
Asset turnover ratio = Net sales/ Total asset

Table 4.3.3: This table represents the calculation of Asset Turnover

Ratio
Year Net Sales (In Rs.Cr)Total Assets (In Rs.Cr) Asset Turnover ratio
2,098.39 977.82
2019 2.14 times
2,106.11 1,225.21
2020 1.72 times
1,752.48 1,198.58
2021 1.46 times
2,378.61 1,380.28
2022 1.72 times
2,627.82 1,891.73
2023 1.39 times

DEPT. OF BUSINESS ADMINISTRATION, BNMIT 36 | P a g e

ORGANIZATIONAL STUDY REPORT AT VRL LOGISTICS LTD

ASSET TURNOVER RATIO

2.5

RATIO IN TIMES 2
1.5
1
0.5
0
2019 2020 2021 2022 2023
YEAR

Figure 4.3.3

Interpretation:
The asset turnover ratio measures a company's efficiency in generating sales from its
assets. It's calculated by dividing the net sales (or revenue) by the total assets.
The company's asset turnover ratio has significantly fluctuated over the past five years,
indicating inconsistency in utilizing its assets to generate sales. After a high of 2.14
times in 2019, it has dipped and risen again, reaching 1.39 times in 2023.
The decline from 2.14 to 1.39 times could indicate:
 Increased investment in assets without a corresponding increase in sales.
 Declining efficiency in using existing assets to generate revenue.

4. Solvency Ratio:
Solvency ratios are also known as leverage ratios. It is believed that if a company has a
low solvency ratio, it is more at the risk of not being able to fulfil its debt obligation
and is likely to default in debt repayment.
Solvency ratio = Net profit after tax + Depreciation / Total Liabilities

Table 4.3.4: This table represents the calculation of Solvency Ratio

Net Profits
after tax (In
Year Rs.Cr) Depreciation (In Rs.Cr) Total Liabilities (In Rs.Cr) Solvency ratio
2019 91.92 100.58 977.82 0.197 times
2020 90.11 167.53 1,225.21 0.210 times
2021 45.07 159.79 1,198.58 0.171 times
2022 160.11 168 1,380.28 0.238 times
2023 323.2 159.14 1,891.73 0.255 Mes

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ORGANIZATIONAL STUDY REPORT AT VRL LOGISTICS LTD

SOLVENCY RATIO
0.3
RATIO IN TIMES 0.25
0.2
0.15
0.1
0.05
0
2019 2020 2021 2022 2023
YEAR

Figure 4.3.4

Interpretation:
The solvency ratio measures a company's ability to meet its long-term liabilities or
obligations. It's calculated by dividing the sum of long-term debt and equity by total
assets. The solvency ratio has fluctuated over the past five years, but it has generally
been increasing with a positive sign, as it suggests that the company is becoming better
able to meet its long-term debt obligations.
 In the year 2019, the solvency ratio is less than 1 i.e. (0.197), indicating that a
significant portion of the company's assets is financed by debt rather than
equity. This might suggest a relatively higher financial risk.
 In 2020, the solvency ratio has increased slightly from the previous year but is
still less than 1, i.e. (0.21), while there is a slight improvement, the company
continues to rely on debt to finance its assets.
 In 2021, the solvency ratio decreased to 0.171, indicating a higher reliance on
debt for financing. This could potentially increase financial risk and raise
concerns about the company's ability to meet long-term obligations.
 In 2022, the solvency ratio has increased to 0.238, suggesting a higher
proportion of equity in the financing structure. This is a positive sign, as it
indicates improved financial stability and a potentially lower level of financial
risk.
 In 2023, the solvency ratio has further increased to 0.255, continuing the
positive trend from the previous year. This indicates a higher reliance on equity
for financing, contributing to improved financial stability.

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5. Debt Equity Ratio:

Debt-to-equity (D/E) ratio is used to evaluate a company’s financial leverage and is
calculated by dividing a company’s long term debts by its shareholder’s funds.
Debt equity ratio = Long term debts \ Shareholder’s funds

Table 4.3.5: This table represents the calculation of Debt Equity Ratio
Long term Debts Shareholders fund (In
Year (In Rs.Cr) Rs.Cr) Debt Equity ratio
2019 103.36 645.94 0.160 times
2020 95.02 616.87 0.154 times
2021 39.48 597.14 0.066 times
2022 81.4 651.63 0.125 times
2023 107.32 975.84 0.110 times

DEBT EQUITY RATIO

0.2
RATIO IN TIMES

0.15
0.1
0.05
0
2019 2020 2021 2022 2023
YEAR

Figure 4.3.5

Interpretation:

The Debt Equity Ratio measures the proportion of a company's debt to its equity and
indicates the degree of financial leverage or risk. A lower debt-to-equity ratio generally
implies lower financial risk.
 In 2019, the debt-to-equity ratio of 0.160 indicates that, for every unit of equity,
there is 0.160 units of long-term debt. This suggests a moderate level of
leverage, with a relatively small amount of debt compared to equity.
 In 2020, the ratio decreased slightly to 0.154 times, indicating a slight reduction
in the use of long-term debt relative to shareholders' equity. The company is
still maintaining a conservative approach to debt.
 In 2021, there is a significant decrease to 0.066 times in the debt-to-equity ratio,
suggesting a substantial reduction in long-term debt or a notable increase in
shareholders' equity. The company has become less leveraged, indicating a
conservative financial structure.

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 In 2022, the ratio increased to 0.125 times compare to 2021 but is still lower
than the levels observed in 2019 and 2020. The company has taken on more
long-term debt relative to shareholders' equity, but the overall leverage is
moderate.
 In 2023, the debt-to-equity ratio has decreased to 0.110 times compare to 2022.
This suggests a reduction in long-term debt relative to shareholders' equity,
contributing to a more conservative financial structure.

6. Gross Profit Ratio:

The gross profit ratio is a profitability measure calculated as the gross profit (GP) ratio
to net sales. It shows how much profit the company generates after deducting its cost
of revenues.

Gross Profit ratio = Gross Profit / Net sales * 100

Table 4.3.6: This table represents the calculation of Gross Profit

Ratio
Year Gross Profit (In Rs.Cr) Net Sales (In Rs.Cr) Gross Profit ratio
2019 140.47 2,098.39 6.69%
2020 104.32 2,106.11 4.95%
2021 63.74 1,752.48 3.64%
2022 209.89 2,378.61 8.82%
2023 202.52 2,627.82 7.71%

GROSS PROFIT RATIO

10.00%
8.00%
RATIO IN %

6.00%
4.00%
2.00%
0.00%
2019 2020 2021 2022 2023
YEAR

Figure 4.3.6

Interpretation:
The Gross Profit Ratio, also known as the gross profit margin, measures the proportion
of gross profit generated from net sales or revenue.

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A lower gross profit ratio could imply increase costs of goods sold or lower revenue
relative to the previous year. It may signal reduced efficiency in managing production
costs or pricing strategies, impacting the company's profitability.

The table shows a significant fluctuation in the company's Gross Profit Ratio over the
past five years.

 After starting at 6.69% in 2019, it dropped to a concerning low of 3.64% in 2021, before
rebounding to 7.71% in 2023.
 During 2019-2020: The decline to 4.95% suggests:
Increased cost of goods sold (COGS)
Decreasing sales volume
 In 2021, the further drop to 3.64% intensifies concerns about cost or volume issues.
 In 2022, the significant rebound to 8.82% indicates successful efforts to improve
profitability.
 In 2023, while down slightly from the peak, the 7.71% suggests some sustained
improvement but not a full return to the initial level.

7. Net profit Ratio:

Net profit ratio (NP ratio) is a popular profitability ratio that shows the relationship
between net profit after tax and net sales revenue of a business entity. It shows the
amount of profit earned by an entity for each sales and is computed by dividing the net
profit after tax by the net sales for the period concerned
Net Profit Ratio = Net Profit / Net Sales * 100

Table 4.3.7: This table represents the calculation of Net Profit

Ratio
Net Profits after
Year tax (In Rs.Cr) Net Sales (In Rs.Cr) Net Profit ratio
2019 91.92 2,098.39 4.38%
2020 90.11 2,106.11 4.28%
2021 45.07 1,752.48 2.57%
2022 160.11 2,378.61 6.73%
2023 323.2 2,627.82 12.30%

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NET PROFIT RATIO

14.00%
12.00%
10.00%
RATIO IN %

8.00%
6.00%
4.00%
2.00%
0.00%
2019 2020 2021 2022 2023
YEAR

Figure 4.3.7

Interpretation:

The Net Profit Ratio, also known as the net profit margin, measures the percentage of
net profit generated from net sales or revenue. The Net Profit Ratio shows
a fluctuation over the past five years, after starting at 4.38% in 2019, it experienced a
sharp decline to 2.57% in 2021 before a significant rebound to 12.30% in 2023.
 During 2019-2020, the slight decrease to 4.28% could be attributed to:
Increased operating expenses negating some gross profit gains.
Higher taxes impacting bottom-line profitability.
 In 2021, the dramatic drop to 2.57% raises serious concerns about cost control
and operational efficiency.
 In 2022, the substantial uptick to 6.73% indicates successful efforts to
turnaround profitability.
 In 2023, the remarkable leap to 12.30% marks a significant and impressive
improvement in net profitability.

8. Return on Investments or Capital Employed:

Return on Investments or Capital Employed, a profitability ratio, measures how
efficiently a company is using its capital to generate profits. The return on capital
employed metric is considered one of the best profitability ratios and is commonly used
by investors to determine whether a company is suitable to invest in or not.
Return on Investments or capital employed = Earnings before Interest and Tax /
Net Capital Employed * 100

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Capital Employed = Total assets – Total Current Liabilities

Table 4.3.8: This table represents the calculation of Return On Investments

Year EBIT (In Rs.Cr) Net Capital Employed (In Rs.Cr) ROI
2019 140.47 853.94 16.45%
2020 104.32 972.32 10.73%
2021 63.74 940.01 6.78%
2022 209.89 1115.1 18.82%
2023 202.52 1585.58 12.77%

Capital Employed = Total Assets - Total Current Liabilities

Total Current Net Capital
Liabilities (In Employed (In
Total Assets (In Rs.Cr) Rs.Cr) Rs.Cr)
977.82 123.88 853.94
1,225.21 252.89 972.32
1,198.58 258.57 940.01
1,380.28 265.18 1115.1
1,891.73 306.15 1585.58

RETURN ON INVESTMENTS OR CAPITAL

EMPLOYED RATIO
20.00%

15.00%
RATIO IN %

10.00%

5.00%

0.00%
2019 2020 2021 2022 2023
YEAR

Figure 4.3.8

Interpretation:

The Return on Investment (ROI) measures the efficiency of an investment in generating

profit relative to its cost. The above table shows a fluctuating ROI with higher
percentages. It started at 16.45% in 2019, dipped significantly to 6.78% in 2021, before
rebounding to 18.82% in 2022 and settling at 12.77% in 2023.
 During 2019-2020: The drop to 10.73% suggests:

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Decreased profitability: Lower net income from operations can impact ROI.
Increased investment: If investments grew without a proportional increase in
profits, ROI would decline.
 In 2021, the sharp fall to 6.78% highlights serious concerns about both
profitability and efficient capital allocation.
 In 2022, the remarkable spike to 18.82% indicates significant success in
improving profitability and utilizing investments effectively.
 In 2023, the slight decrease from the peak suggests some potential for further
optimization, even with the substantial improvement.

9. Fixed Asset Turnover Ratio:

The fixed asset turnover ratio reveals how efficient a company is at generating sales
from its existing fixed assets. This efficiency ratio compares net sales (income
statement) to fixed assets (balance sheet) and measures a company's ability to generate
net sales from its fixed-asset investments, namely property, plant, and equipment
(PP&E).

Fixed asset turnover ratio = Net sales/Net fixed asset

Table 4.3.9: This table represents the calculation of Fixed Asset

Turnover Ratio
Net Fixed Assets Fixed Asset Turnover
Year Net Sales (In Rs.Cr) (In Rs.Cr) ratio
2019 2,098.39 746.7 2.81 times
2020 2,106.11 994.71 2.12 times
2021 1,752.48 960.43 1.82 times
2022 2,378.61 1,132.97 2.10 times
2023 2,627.82 1,520.58 1.73 times

FIXED ASSET TURNOVER RATIO

3
2.5
RATIO IN TIMES

2
1.5
1
0.5
0
2019 2020 2021 2022 2023
YEAR

Figure 4.3.9

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Interpretation:
The Fixed Asset Turnover Ratio assesses a company's efficiency in using its fixed
assets to generate sales. The company's Fixed Asset Turnover Ratio has fluctuated over
the past five years, but generally remained within a range of 1.7 to 2.8 times. There was
a significant drop from 2.81 times in 2019 to 1.82 times in 2021, followed by a rebound
to 2.10 times in 2022 and a further decline to 1.73 times in 2023.
 During 2019-2020, the slight decrease to 2.12 times might suggest:
Increased investment in fixed assets without a proportional increase in sales.
Declining efficiency in using existing fixed assets to generate revenue.
 In 2021, the sharp drop to 1.82 times highlight concerns about underutilized
fixed assets or slower sales growth.
 In 2022, the rebound to 2.10 times indicates some improvement in asset
utilization or sales growth.
 In 2023, the recent decline to 1.73 times raise potential inefficiencies or slower
sales.

10. Operating Cost / Expense Ratio:

The operating cost ratio is also known as operating expense ratio, the operating
ratio compares operating expenses to net sales. It's a common metric companies use to
determine how efficient their management is at keeping operating costs low while also
earning revenue or making sales.

Operating Cost Ratio= Operating cost / Net sales * 100

Table 4.3.10: This table represents the calculation of Operating
Cost/Expense Ratio
Operating Cost (In Operating
Year Rs.Cr) Net Sales (In Rs.Cr) Cost/Expense ratio
2019 1474.34 2,098.39 70.26%
2020 1410.2 2,106.11 66.96%
2021 1181.75 1,752.48 67.43%
2022 1591.65 2,378.61 66.92%
2023 1799.03 2,627.82 68.46%

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OPERATING COST OR EXPENSE RATIO

71.00%
RATIO IN % 70.00%
69.00%
68.00%
67.00%
66.00%
65.00%
2019 2020 2021 2022 2023
YEAR

Figure 4.3.10

Interpretation:
The Operating Cost/Expense Ratio calculates the proportion of operating expenses in
relation to net sales or revenue. The above graph shows a moderately fluctuating
Operating Cost/Expense Ratio over the past five years, generally ranging between 66%
and 70%. While fluctuations occur, there's no notable long-term upward or downward
trend.
 During 2019-2020, the decline from 70.26% to 66.96% suggests some success
in controlling operating costs relative to sales.
 In 2021, the slight increase to 67.43% could be attributed to:
Rising cost of inputs: Increased raw material or labour costs could lead to
higher operating expenses.
Changes in product mix: A shift to products with higher operating costs could
impact the ratio.
 In 2022, the return to 66.92% indicates continued efforts to manage operating
costs effectively.
 In 2023, the recent increase to 68.46% raises some concerns about potential cost
pressures or inefficiencies.

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ORGANIZATIONAL STUDY REPORT AT VRL LOGISTICS LTD

CHAPTER 5
LEARNING EXPERIENCE
5.1 Role in the Organization:
 Passing journal entries
 Maintaining general ledger accounts
 Recording all expenses in the company’s software book using excel
 Verifying all expenses with vouchers
 Recording loading and unloading of goods received
 Got an opportunity to explore the practical work environment by visiting different
branches of VRL logistics Ltd

5.2 Learning Experience:

 As an MBA intern at VRL Logistics Ltd, gained valuable learning experiences that
helped me understand the intricacies of the logistics and transportation industry and
develop essential business skills.
 An organization study at VRL, as an in plant training during the corporate internship
has really helped me to understand the organizational structure of the corporate world
to an extent and the ways and means how it functions. It is one of the leading industry
in travel sector. This organization has a large investment and a good number of people
working in it. There is a well-established organizational structure with the top level
management, middle level management, and the bottom level management.
 Gained insights into the end-to-end supply chain, including procurement, warehousing,
distribution, and inventory management. Understand how VRL Logistics optimizes the
flow of goods and information.
 Learned about the operations of VRL's fleet, routing, and scheduling. Explore ways to
improve efficiency in transportation and logistics processes.
 Understood how VRL Logistics manages relationships with various customers,
including businesses, e-commerce companies, and individuals. Learn about customer
retention and satisfaction strategies.
 Explored the role of technology in logistics, including tracking systems, route
optimization software, and warehouse management systems. Learn how innovation can
drive efficiency.

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 The company shall prepare and maintain it accounts fairly and accurately in accordance
with the accounting and financial reporting standards. Every employee can promptly
report to the management, only actual or possible violation of the code or an event he
became aware of that could affect the business or reputation of the company.
 Collaborated with cross-functional teams within the organization to understand how
different departments work together to achieve common goals.
 The organization has separate departments for human resource management, material
handling, accounts and finance department. There is an informational technology
department and MIS departments at work. Although there is a well-established internet
facility through which data is made available to the different departments at instances
whenever is needed.
 The attendance is recorded in registers and maintained to check the regularity of
employees. And there is a well-established shift system.

5.3 Findings:

 The effective pricing strategy of VRL Logistics Limited. The pricing is done on the
basis of weight and space occupied by the consignment (whichever is higher).
 The various kinds of services offered by them and the process of material handling.
 The organization focuses on customer satisfaction and best and speed service. The
major advantage is that the company is a single largest service provider in south India.
 The model used to provide the better service to the customer is Hub and Spoke model.
 Potential for the freight movement in the fourth coming years.

5.4 Suggestions:

 To retain the employees by providing them incentives as to motivate and encourage for
their contribution.
 It should emphasize on warehousing facilities provided.
 They can construct racks to make use of space in the warehouse.
 They have to purchase safer material handling equipment’s as the business is growing.
 The company should build relationship with industries for more contracts.

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5.5 Conclusion:
VRL Logistics Ltd is a well-known organization, structured with quality initiative and
effective communication and found point out in the “Limca Book of Records” as the biggest
creature proprietor of transportation service vehicles in India and as well ISO 9001-2000
certified company, today in this huge competition in service sector VRL stands at the top in
the southern part of India and the company is also working for media, travels, airways. The
company has created a great brand name in customer mind but the company failing in extend
their market size.

Based on the overall study of the company the financial position of the company is sound.
The company is one of the nationally renowned and transport company in south India. The
employees at the company are hardworking and dedicated. The company has increasing profit
and net worth. Thus, company performed very nicely from its birth.

All the departments play a vital role in every organization. The overall study that emerges in
this firm has maintained well and efficient department in the management. It’s all sections
are working efficiently. The overall capacity of all departments is well systematic.

VRL is an established logistics company with a strong brand presence and an extensive
network of branches and depots across India. The company offers a diverse portfolio of
logistics services and has invested in technology to enhance its operations. VRL owns and
manages a large fleet of vehicles giving it control over transportation operations. The
company should focus on addressing infrastructure, adapting to evolving market conditions
and leveraging its technological capabilities to improve operational efficiency and customer
satisfaction and to maintain its competitive position and capitalize on opportunities.

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Bibliography:

 www.vrlgroup.com
 www.vrllogistics.com
 www.Wikipedia.com
 www.investopedia.com
 www.moneycontrol.com

DEPT. OF BUSINESS ADMINISTRATION, BNMIT 50 | P a g e