1

PROJECT ON

"BUSINESS OPPORTUNITIES OF ONE STOP

LOGISTICS SUPPORT IN BANGLADESH:A

Comprehensive study on Delhivery"

Part- 01: (For investors of Bangladesh)

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1.1Executive Summary:

“ Delhivery”

Enabling Commerce - A growing team and network that has already helped create over 55

million outstanding retail experiences.

Key Value Creation:

Building The Commerce Ecosystem Of The Future - Delhivery bring cutting-edge

commerce technology and pan-India reach to scale your multi-channel retail operations rapidly

and cost efficiently.

Delivering Seamless Experiences – Technology, fulfilment and logistics solutions for a

personalized shopping environment.

Creating Happier Customers – Enable your customers to receive their products when, where

and how they want it with omni-channel fulfillment.

Delhivery is India’s largest one stop e-commerce logistics network and provider of omni-

channel, commerce service, and fulfillment and logistics services to the e-commerce industry. It

offers a full suite of services such as last-mile delivery, third-party and transit warehousing,

reverse logistics, payment collection, vendor-to-warehouse and vendor-to-customer shipping and

more.

Scenario of Delhivery Journey

2011

2 cities

6 clients

20 sellers

150+team

=

2012

31 cities

75 clients

53 sellers

1000+team

=

2013

130 cities

600 clients

10000 sellers

2500+team

=

2014

175 cities

800 clients

25000 sellers

5000+team

=

2015

325 cities

2000 clients

100000 sellers

15000+team

=

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1.2 Business Model:

1.2.1 Delhivery- A Company Overview:

CEO & Co-founder: SahilBarua

COO & other Co-founder: Mohit Tandon, Suraj Saharan, Bhavesh Manglani, Kapil

Bharati.

Founded: May, 2011.

Headquarters: Gurgaon, Haryana, India.

Status: Private.

Operating Name: Delhivery.

Formally Registered Name: SSN Logistics Pvt. Ltd.

Industry Sector: Courier and Logistics Services.

Website: www.delhivery.com

Employee: 15000+

Warehouse Facilities: 1 million Sqft with 16 fulfillment centers.

Processing Capacity: 1.2 million shipments per day.

Operations: 350+ cities in India.

Clients: 2000.

Sellers: 100000.

Key investors: Tiger Global Management, Nexus Venture Partners, Multiples Alternate

Asset Management and Times Internet limited.

Key Investments: Parcelled, Opinio, RocketBox, QikPod, Qyk.

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Payment

1.2.2 Order Fulfillment Process:

Getting Payment

Sign Up

Getting Payment

Confirmation

01: Figure Order Fulfillment Process

Sellers

Delhivery

Consumers

Online

Off-line

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1.2.3Operations:

1. Omni-Channel:

Whether you are a local, regional or national retailer, an international brand or an e-commerce

company - our service offering can easily be designed to suit your customers' specific needs. Our

commerce technology toolkit provides you a way to manage store-fronts, market-place

integration, distributed orders, catalogues, payments and analytics from a single location.

I. Channel Creation: Web Store, Mobile Store, In-Store Kiosks, Social Media Selling.

II. Order Management: Distributed Order Management, Global Inventory

Operations

Omni-Channel

Channel Creation

Order Management

Customer Engagement

Commerce Services

Channel Analytics

Demand Analytics

Fulfillment and Logistics

Fulfillment

Shipping

Special Services

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III. Customer Engagement: Campaign Management, SEO, Email Marketing, Advertising,

Social Media Management.

2. Commerce Services:

Delhivery provide a unified view of your customer data from engagement to order management,

fulfillment and shipping. Use Delhivery Data Services to design marketing campaigns,

recommendations engines and plan and manage merchandizing, transportation and customer

service.

I. Channel Analytics: Channel Productivity, Inventory Allocation, Vendor Selection.

II. Demand Analytics: Demand Forecasting, Returns Management, Fraud Detection,

Recommendations Engine.

3. Fulfillment and Logistics:

Delhivery are capable of fulfilling orders in a time-span of less than three hours with zero mis-

shipments or losses. Pan-India express delivery network backed by our in-house fulfillment and

transportation management systems, customer analytics, geo-coding and route optimization helps

you get your products to consumers within 12-48 hours.

I. Fulfillment: Order Fulfillment, Just-In-Time Fulfillment, Special Packaging, Courier

Management and Selection.

II. Shipping: Labeling, Express Shipping, Offline Payments, Drop Shipping, BOPS.

III. Special Services: Reverse Logistics, After-Sales Support, Replacements, Call-Center

Services

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1.2.4 Delhivery Portfolio Companies:

1.

QikPod offers a logistics platform that helps people to receive their orders through a network

of fully-automated, self-serve lockers.

2.

Parcelled is an online logistics firm that provides on-demand shipping, courier and delivery

services.

3.

Opinio is an online portal that provides hyper local logistics services for restaurants, grocery

stores, bakeries and laundry stores.

4.

Qyk is a web and mobile based platform that enables users to find and book for home service

providers in India.

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1.2.5 Financial model:

Fund Raising:

Fund raising is the process of gathering voluntary contributions of money or other resources by

requesting donations from individuals, businesses, charitable foundations and governmental

agencies.

Figure- 02: Fund raising

• Delhivery has started its fundraising process. The firm expects toraised $150 million i.e., Rs. 1000 crore at $700 million (Rs. 4500crore) valuation. This is twice its previous valuation

• Delhivery is backed by Tiger Global and is now in talks with theRussian billionaire Yuri Milner’s DST Global, Hillhouse Capital of Chinaand GIC of Singapore. DST Global also backs Ola and Flipkart. Apartfrom these heavy investors, the company is also in talks with otherfunds, one of which is International Finance Corporation.

• The latest round of fundraising by e-commerce logisticsstartup Delhivery is expected to triple its valuation to about Rs 1,800crore, as it looks to raise $100 million (Rs 620 crore) from privateequity firms to keep up with the exponential growth seen in onlineshopping, people familiar with the matter told ET.

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Funding Rounds - $127.5M

Date Amount / Round Lead Investor Investors

May, 2015 $85M / Series D Tiger Global Management 3

Sep, 2014 $35M / Series C Multiples Alternate Asset Management

Private Limited

3

Sep, 2013 $6M / Series B Nexus Venture Partners 2

Aug, 2012 $1.5M / Series A Times Internet 1

Figure-03: Funding rounds

According to previous ET reports, Delhivery's current investors include Nexus Venture Partners,

Multiples Alternate Asset Management and Times Internet, part of The Times Group which

publishes The Economic Times.

Investors

Investor Round(s)

Multiples Alternate Asset Management Private Limited Series C (Lead)

Series D

Nexus Venture Partners Series B

Series C

Series D

Tiger Global Management Series D (Lead)

Times Internet Series A

Series B

Series C

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Figure-04: fund Investors

This round of (Series C) financing will be used to invest extensively in growing portfolio

of commerce technologies and towards expanding their logistics infrastructure,

fulfillment and transportation services.

Delhivery had raised Series A round from Times Internet Ltd in April 2012 and Series B

from Times Internet and Nexus Venture Partners in September 2013. The firm did not

reveal the amount raised in these two rounds. The company also plans to expand its

network to over 250 cities by the end of this calendar year from the present more than

180 cities. The company expects to double volumes by the end of the financial year.

Delhivery provides a range of products and services for e-Commerce firms including

online channel integration services, strategic sourcing, catalogue management, inventory

management and analytics along with multi-city fulfillment, express transportation and

reverse logistics.

Starting as a transportation services provider in 2011, Delhivery has grown into a team of

over three million monthly transactions for 70,000 merchants, 1,500 e-commerce

companies, and 200 offline retailers.

In a prepared statement, Delhivery said it will use its series D on infrastructure to serve

different kinds of e-commerce companies and verticals, including hyper local commerce,

furniture, and e-commerce, as well as extend its reach in rural areas of India.

Delhivery had made a significant investment in Parcelled at the start of the year.

Delhivery has also recently backed Opinio, a hyper local delivery company from

Bangalore. These strategic investments are giving Delhivery a competitive advantage

over new players who are entering the lucrative market, which

include Shipsy, DaakNinja, and Pigen to name a few.

Parcelled received around $5 million from Delhivery & Tracxn Labs

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Opinio recently picked up $7 million in funding from Delhivery, Sands Capital

and Accel Partners

Investments :

Date Invested In Round

Nov, 2015 Qikpod $9M / Series A

Oct, 2015 Parcelled.in $5M / Series A (Lead)

Oct, 2015 Rocketbox undisclosed amount / Seed

Oct, 2015 Opinio $7M / Series A (Lead)

Jul, 2015 Parcelled.in undisclosed amount /Venture (Lead)

Figure- 05: Investments

Fund Allocation and Utilization:

The company will use capital to build infrastructure and design services for e-commerce,

hyper local commerce, C2C commerce and other verticals with specialized requirements

such as reverse logistics, furniture and grocery.

Delhivery started as a transportation services provider in 2011, now provides a range of

products and services for business looking to go online, including online channel

integration services, strategic sourcing, catalogue management, inventory management

and analytics along with multi-city fulfillment, express transportation and reverse

logistics.

Currently, Delhivery has over 10,000 employees in more than 200 cities along with

nearly one million square feet of warehousing space in 11 fulfillment centers. By the end

of the calendar year, the company plans to tap into India’s rural market as well with a

four-fold increase in its current reach along with investment in over 2.5 million square

feet of fulfillment centers.

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Delhivery has built its market-leading position by innovating extensively in its growing

portfolio of commerce technologies while expanding its logistics infrastructure,

fulfillment and transportation services.

Financial Report:

Logistics startup Delhivery has reported an over three-fold rise in losses to R71.08 crore for the

year ended March 2015, according to a filing with the registrar of companies. The company is

valued at $350-400 million after its fund-raising in May as per reports. The e-commerce focused

third party courier reported a 269% jump in total revenues to R228.49 crore from R61.87 crore in

FY14. Transportation services for parcels fetched the company R222.83 crore worth of operating

revenues for FY15. Expenses surged on back of a spike in employee benefit expenses which rose

to R48.55 crore from R13. 66 crore in FY14. Total expenses for the company were recorded at

R299.56 crore against R81.36 crore in the previous year. Volumes at Delhivery rose 3-4X in the

twelve months to June, 201

Figure-06: Financial Report

61.1461.87

13.66

81.36

19.47

222.83

228.49

48.55

229.56

71.08

0

0.5

1

1.5

2

2.5

3

3.5

4

Operating Revenues Total revenuesEmployee Benefit ExpensesTotal Expenses Loss

FY14

FY15

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1.2.6 Technological insights of Delhivery:

Delhivery seller toolkit:

Management of sales channels: online, mobile store-fronts and in-store sales

management of global inventory

distributed order management

channel integration

Delhivery inventory management toolkit:

Optimize inventory allocation across the country

Lower total logistic costs

Maintaining same day/next day service levels.

Delhivery commerce technology toolkit:

manage store-fronts

market-place integration

distributed orders

catalogues

Payments and analytics.

Delhivery track and trace system:

Track the current status of the consignment

Need not to visit the courier location or call the CS center.

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1.2.7 Payment & Tracking procedure:

Generally Delhivery payment system is based on Cash on Delivery and EDI.

Cash on Delivery charge vary with the volume of shipment you commit to the courier

company. The courier rates provided to the customer vary as well. The higher the volume

is, the lower the charges are.

However, given the current market scenario, it makes sense to have multiple courier

partners on board. This is where courier aggregators come in play. Customers don’t have

to commit a minimum number of shipments and the rates they get are pre-negotiated with

the courier companies. Since the aggregator has a parent account with the courier

company, the volume they provide to the courier companies is usually high. Delhivery

provides additional support service for the courier service during the operational phase.

Since there is-

Preliminary statements that define the parties and their intentions, and provide for the

freight bill payment firm's engagement by the outsourcer to perform certain services.

A clearly defined list of services, including, for example, pre-audit, bill payment, data

capture, and reports. Delhivery confirms that it has EDI capability. This section of the

contract describes the Internet services the freight bill payment firm will provide, and

clearly define confidentiality requirements for the software and materials.

The term of the contract, along with any termination privileges.

A clearly outlined fee schedule, based on a profile provided by the outsourcing company.

That profile should be incorporated into the contract so all parties can understand the

assumptions on which pricing was based.

Finally, the agreement among Delhivery and customers contain a confidentiality clause,

as well as provisions for severability, governing law, insolvency, force majeure, and the

relationship of parties.

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Tracking procedure:

Customer can also track their product by simply using official website of Delhivery easily. Just

simply enter the tracking / AWB number associated with the package or courier above and click

on the 'Track button. If that method fails to work, follow the instructions below.

1. First, go to the official website delhivery.com.

2. In the navigation menu, click on 'Track Order' and enter your Waybill or Order number

in the given field and click Enter (Refer to the image below).

3. The courier location and other details including From address, To address, name of the

recipient, estimated time of delivery, history of all locations, etc. will be displayed.

4. Customer can find their Delhivery Express order no. on the printed receipt.

5. Contact the official support on Delhivery portal, if any customer faces any problems or

discrepancies.

When any potential customer visits the Website or send emails to Delhivery, they are

communicating electronically. Customer consents to receive communications from Delhivery

electronically. They will communicate with the customer by email or by posting notices on the

Website. Thus Delhivery keep tab on their customers and notify their offer.

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1.2.8 Marketing Model of Delhivery:

Marketing Model:

Traditional Marketing:

There some traditional marketing ways Delhivery rarely follows and applies for their promotions

in offline:

Branding

Services need to have a focus, a target market, and a recognizable name, or "brand," to become

successful. Branding is a form of marketing that helps to make the product or service both

attractive and well-known. So in case of branding Delhivery includes distinctive names, slogans,

and graphics, such as a logo.

Ways of Marketing

Traditional Marketing

Branding Direct

Digital Marketing

Social Media Web Store Mobile Store

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Direct marketing

When Delhivery deal directly with consumers or clients, they participate in direct marketing.

There are no third-party intermediaries. Direct marketing takes place through the mail, telephone

and Internet as companies sell their services directly to customers or clients.

Digital Marketing:

Digital Marketing can be done in a huge array of formats, from websites to social media and

mobile applications, and can allow for customization, content-based ads, and interaction from the

audience.

There some online presence ways are followed by Delhivery for reaching online clients:

Social Media Marketing

Web Store

Mobile Store

Social Media Marketing:

Facebook Marketing:

Facebook is big as the largest social network in the world; it has more than 1.23 billion active

users, 62% of whom log in on a daily basis. We can target customers in facebook by location,

demographics, and interests.Facebook has three tools (pages, ads, and groups) that can be used

by anyone. Each of these options has its own purpose, and they can be combined for greater

reach. Delhivery uses these all ways for Facebook marketing.

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Linkedin Marketing:

Linkedin is commonly known as a professional site becoming very popular for different

companies to reach their online & professional clients. Delhivery offers theirs executives,

internships & jobs facilities to reach interested people and also ensures the engagement to build

& capture the market.

Twitter Marketing:

Twitter marketing is all forms of Twitter encompassing free and paid uses of Twitter's services

and applications by a brand but also all encouragements and incentives addressed to consumers

to relay and amplify brand contents, messages and campaigns. For different campaigns

Delhivery rarely uses the Twitter Marketing.

Web& Mobile Store:

Delhivery most commonly uses this web store& mobile store & app system to reach their target

clients via web based system. It ensures the quick response & engagement with the final clients

& customers. Web store also helps to get authentic information & quick feedback target market.

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1.3. Business Timeline :

Business growth is not easy to define. Some descriptions are too broad. Others set parameters

so narrow that the ultimate definition seems too focused in scope. Often, we end up with

definitions that seem plausible in an academic sense, such as:

Being world class

Being the best globally

Excellence in everything we do

1.3.1 Business, Employee &Operational growth:

Delhivery, as of now, seems to be chugging along well on the funding front.

The start-up raised its second round, a funding of Rs 35 crore, in August 2013 from

Nexus Venture Partners and Times Internet.

It may now close a third round in three months. The investors are betting on its huge

growth potential the company has already demonstrated some scale.

Today, it delivers 200000 to 300000 orders a day and has customers such as Flipkart,

Snapdeal, eBay, Amazon, Myntra, Jabong and Healthkart.

Year by year Growth:

May 2011:

Delhivery is founded in and they launched express logistics service in the month of June

in Delhi NCR.

In December 2011 they had Deliver 500+ shipments per day for 5 e-commerce clients in

Delhi NCR.

In April 2012:

Delhivery is raised Series-A round of funding from Times Internet Limited.

Launched fulfillment services in Delhi and Chennai with 10,000+ sq ft of fulfillment

space.

It’s processed up to 50,000 shipments a month delivering up to 9,000 shipments a day.

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Figure-07: Business, Employee & Operational growth

In 2013:

Express logistics services expanded to 130+ cities.

Fulfillment services expanded to 3 cities with 40,000+ sq ft of fulfillment space.

In September: Raised Series-B round of funding from Times Internet Limited and Nexus

Venture Partners. They Launched suite of commerce technology including Vendor Panel,

Godam, FALCON.

In 2014:

Express logistics services expanded to 175+ cities in India

6 fulfillment centers with 250000 sqft of space to offer Delhivery Fulfillment Services

across India. Made Expansion of processing capacity to over 250000 shipments per day.

In September: Series C funding by Renuka Ramnath led private equity firm Multiples

Alternate Asset Management with participation from existing investors Nexus Venture

Partners and Times Internet Limited.

In 2015:

Express logistics services expanded to 350+ cities. 16 fulfillment centers with 1 million

sqft of warehousing including first FC in Dubai for cross border fulfillment.

Made Expansion of processing capacity to over 1.2 million shipments per day.

In April: Series D funding led by Tiger Global Management with participation from

existing investors.

Key Investments: Parcelled, Opinio, RocketBox, and QikPod.

Year Team size Cities Clients Sellers Products/day

2011

150+ 02 06 20 500

2012 1,000+

31 75 53 9000

2013 2,500+ 130 600 10,000 40,000

2014 5,000+ 175 800

25000 90000

2015 15,000+ 325 2000 100000 200000

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1.3.2 Customer Acquisition:

Putting simply, customer acquisition refers to gaining new consumers. Acquiring new customers

involves persuading consumers to purchase a company’s products and/or services. Acquiring

new customers means understanding what makes your customers tick and investing heavily in

inbound marketing strategies such as content, building an email newsletter and search engine

optimization (SEO).

Delhivery Customer Acquisition

Delhivery offers real-time status of orders to consumers.

Customer service is vital for Delhivery as it directly deals with customers and over

25,000 sellers operating in over 175 cities in India, entrusted with shipments to be

delivered on time

Delhivery Selects Ameyo to Drive Customer Engagement Across the Nation.

Ameyo came across as the most flexible technology that could customize and design a

Contact Center Solution by aligning themselves with our vision and objective. This

solution has enabled Delhivery in consistently increasing its customer satisfaction score.

At a glance Delhivery Customer Acquisition year by year:

Figure- 08: Customer Acquisition year by year.

Year Clients

2011 06

2012 75

2013 600

2014 800

2015 2000

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Delhivery’s Customer Experience Strategy is to build a world class voice of customer program

by delivering supreme Customer Experience through various touch points. The objective is to

improve customer satisfaction and loyalty thereby increasing customer lifetime value by making

the most out of every customer engagement whether in person, online via email or chat or over

the phone. To achieve this Delhivery researched, engaged and weighed multiple Contact Center

Solution providers in the industry.

The company is breaking even on a month-on-month basis and SahilBarua, founder of

Delhivery, expects it to be completely profitable next year. Delhivery is now getting into the

overseas ecommerce space. It has already developed fulfillment centre in Dubai. “Our vision

is to fulfill all demands in 48 hours,” says CEO of Delhivery. And Delhivery is now wanted

to enlarge their business in Bangladesh. So it’s a huge opportunity for Bangladeshi investors

to be the part of such type of fast growing company.

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(Part- 02: For Foreign Direct Investment)

2.1 Executive Summary:

Bangladesh is considered one of the 45 major emerging markets of the world. It has a population

of 164 million making it one of the most densely populated countries in the world with a

relatively large, young labor force. Bangladesh Government has taken many initiatives to make

the young labor force into human resource.

Bangladesh has proper investment and company formation guidelines with proper registration

and legal documentation process. For logistics and IT industry it has proper industry specific law

with proper rules and regulations. It has also proper capital market and money market to finance

your business with structured share Market. To facilitate your business it has a strong banking

and financial institution facilities.

Bangladesh has favorable political, Economical, Social, Technological, Environmental, legal

(PESTEL) situation right now.

On a ranking of major logistics markets for the future by Agility Emerging Market Logistics

Index (AEMLI) Bangladesh is currently placed at 27. According to the Agility Emerging Market

Logistics Index (AEMLI) Bangladesh is considered as one of the 45 major emerging markets of

the world.

The government has brought about many constructive and timely reforms in the running of

businesses, and liberalized trade so that private entrepreneurs can seize opportunities of

establishing and running industrial enterprises profitably and freely.

Strengths Opportunities

Low competition Supportive regulatory changes from government

Comparatively cheap labors Large potential domestic and international market

Skilled human resources Exciting ecommerce growth in the coming years.

Structured Money & capital Market. Ongoing infrastructure development

Variety of transportation modes

Strengths and opportunities of logistics industry in Bangladesh

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2.2 Business Opportunities in Bangladesh

2.2.1 Investment Guideline (FDI):

Investment in Bangladesh:

Implementing a private sector industrial project in Bangladesh either local, joint venture or 100%

foreign follows a rather simplified process. Once an investor to do business in Bangladesh, the

first thing is have relevant, sufficient and reliable information on the investment. Also have

business climate, opportunities and competitive strengths.

ROAD MAP TO INVEST IN BANGLADESH

Arrival in Bangladesh

Help Desk of Board of Investment

Opening a Bank

Account

Trade License

from Local Govt.

Bodies

TIN Certificate

from Income Tax

Office

Company

Formation &

RJSCF

Registration

Private Ltd Company

(Capital shall not

exceed Tk 10 crore)

Public Ltd Company

(Min paid up capital

shall be Tk 40 crore)

Application for

BOI Registration

BOI Prescribed Form Project Profile MoA & AoA

TIN & VAT Registration Trade License

Pay Orders

Machinery Details

Plant Set-up

Fire License

DOE Clearance

VAT Registration

from NBR

Industrial Adhoc IRC

from CCI & E

Import of Machinery

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2.2.2 Company Formation Guideline:

This guide will provide you a detailed overview of company registration requirements,

procedure, and timeline for registering a private limited company in Bangladesh. Like most other

jurisdictions, Bangladesh has a set of initial and ongoing regulatory compliance requirements for

starting and operating a company.

Most Bangladeshi companies are registered as private limited liability companies (commonly

known as private limited companies). A private limited company in Bangladesh is a separate

legal entity and shareholders are not liable for the company’s debts beyond the amount of share

capital they have contributed. According to the Companies Act 1994, any person (foreign or

local) above the age of 18 can register a company in Bangladesh.

If you are a foreign investor, our article will help you to understand the legal regime about

foreign investment in Bangladesh.

PRE-REGISTRATION – WHAT YOU NEED TO KNOW

KEY FACTS ABOUT COMPANY FORMATION

Company Name. The name must be approved (cleared) before incorporation of the

company in Bangladesh.

Directors. Minimum two directors are mandatory. Directors can be either local or

foreign. Directors must be at least 18 years of age and must not be bankrupt or convicted

for any malpractice in the past. The law requires that a director must own qualification

shares stated in the Articles of Association. A shareholder which is not a natural person

(i.e. a company) can select nominee director.

Shareholders. A private limited company in Bangladesh can have a minimum of 2 and

maximum of 50 shareholders. A director and shareholder can be the same or a different

person. The shareholder can be a person or another legal entity such as another company

or trust. 100% local or foreign shareholding is allowed. New shares can be issued or

existing shares can be transferred to another person anytime after the Bangladeshi

company has gone through the incorporation process.

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Authorized Capital. You must state the authorized capital in the Memorandum of

Association and Articles of Association. It is the maximum amount of share capital that

the company is authorized to issue (allocate) to shareholders. Part of the authorized

capital can remain unissued. There is no minimum or maximum limit for authorized

capital in Bangladesh.

Paid-up Capital. Minimum paid-up capital for registration of a Bangladeshi company is

Taka 1. Paid-up capital (also known as share capital) can be increased anytime after the

incorporation of the company.

Registered Address. In order to register a company in Bangladesh, you must provide a

local address as the registered address of the company. The registered address must be a

physical address (can be either a residential or commercial address) and cannot be a P.O.

Box.

Memorandum and Articles of Association. The company to be incorporated must

prepare a memorandum of association (MoA) and articles of association (AoA).

CONSIDERATIONS FOR FOREIGNERS

Foreigners wishing to open a Bangladesh company, must take into consideration the following

points:

You must open a bank account in the name of the proposed company with the name

clearance obtained from the Registrar of Joint Stock Companies and Firms (RJSC) i.e.

the registrar of companies and bring in the initial paid up capital. This is a mandatory for

company incorporation in Bangladesh.

All company incorporation formalities can be handled without you having to visit

Bangladesh. The only exception may be opening a bank account, depending upon the

bank you choose.

All the director and shareholders can be foreigner.

There is no requirement for you to obtain any special Bangladesh visa if you merely want

to incorporate a private limited company but have no plans to relocate to Bangladesh.

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You are free to operate your company from overseas as well as free to visit Bangladesh

on a business visa whenever required to attend to company matters on a short-term basis.

If you plan to relocate to Bangladesh to operate your company, you are required to obtain

a work permit.

REQUIRED DOCUMENTS

For the purpose of company incorporation in Bangladesh, the following information is required

by the company registrar:

Company Name. A name clearance must be obtained.

Memorandum of Association and Articles of Association. RJSC requires that the

object clause in the MoA to be within 400 words and 7 clauses.

Shareholders Particulars (National ID if the shareholder is a Bangladeshi)

Directors Particulars (including Tax Identification Number)

Registered Address

Singed Form IX and Subscriber Page . Scanned copy in pdf will be required.

For foreigners: Copy of passport of shareholder and director.

REGISTRATION PROCEDURE

Company registration procedure in Bangladesh is partially computerized.

There are three distinct steps involved in the Bangladeshi company setup procedure: a) Name

Clearance; ii) Bank account opening and bringing in the paid up capital; and finally b) Company

Registration. Step ii is only applicable if there is any foreign shareholder in the proposed

company.

STEP 1: (NAME CLEARANCE)

To set up a Bangladesh company, your first step would be to obtain a name clearance for the

proposed company name. You will have to visit www.roc.gov.bd and create a username first.

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Then you will be able to apply for name clearance. After you made the application for name

clearance, you will receive a bank payment slip and you will have to pay Taka 600 to the

designated bank. After making the payment, you will have to log in to your account on the RJSC

website and then you will get the name clearance.

You may read this guide prepared by RJSC for name clearance.

Tip: use Internet Explorer and Mozilla Firefox while using the RJSC website. Other browser

might not work properly.

To improve your chances of quick name approval, make sure the name:

is not identical or too similar to any existing local company names

does not infringe with any trademarks

is not obscene or vulgar

is not already reserved

An approved name will be reserved for 6 months from the date of clearance. You can extend the

name by filing an extension request just before the expiry date.

STEP 2: BANK ACCOUNT OPENING AND BRINGING IN THE PAID UP CAPITAL

This step is only applicable if the proposed company has foreign shareholding.

Next, you will have to open a bank account in the proposed company name with any scheduled

bank in Bangladesh. After opening the account, you will have to remit money equal to the shares

to be owned by the foreign shareholder from outside Bangladesh in the account. The Bank will

issue an Encashment Certificate which will be required by RJSC for incorporation.

STEP 3: REGISTER COMPANY

The last step is to submit all the required information in the RJSC’s website. Also you will be

required to upload Form IX and Subscriber Page. After you finish all the process, you will

receive a bank payment slip for paying the registration fees along with stamp duty.

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You may read this guide prepared by RJSC for submitting all the information in the RJSC’s

website.

After making the payment in the bank, you are done. Now you will have to follow up with the

RJSC for obtaining the incorporation certificate. RJSC officials will check the documents and

information. If they are satisfied, they will issue the digitally signed i) Certificate of

Incorporation; ii) MoA and AoA; and iii) Form XII. These documents will be mailed to your

email address associated with your RJSC account.

There are cases when the incorporation procedure can get delayed if the shareholders or directors

are of certain nationalities, although this happens in rare cases only. In such cases, the authorities

might ask for additional information.

POST-REGISTRATION FORMALITIES

DOCUMENTS ISSUED BY RJSC:

Certificate of Incorporation: RJSC will issue a Certificate of Incorporation of the

company. The certificate will have the registration number, name of the company and the

date of incorporation.

Form XII: Form XII contains the list of directors of the incorporated company.

Certified copies of MoA and AoA

Some of the other items you will almost certainly need upon registration of your

Bangladeshi company include:

Share certificates for each of the shareholders.

Register for shareholders, shares, directors etc.

Company seal for the company

A rubber stamp for the company

30

APPLYING FOR TRADE LICENSE, TAX IDENTIFICATION NUMBER AND OTHER

LICENSES

After the incorporation, you should buy a commercial space or rent some space in any

commercial area. Then you need to apply for Trade License and Tax Identification Number.

Depending on your company’s business activities, you may need to obtain more business

licenses.

RETURN FILING REQUIREMENTS

Annual Return: Each calendar year, an Annual General Meeting must be held. The

AGM must be conducted within 18 months of company incorporation, after which no

more than 15 months can elapse between one AGM and the next.

Regular Return: In case of any change in the board of directors or in the

shareholding structure or any other change, a relevant return must be filed with the

RJSC within a certain period of time.

2.2.3 Government Support:

On a ranking of major logistics markets for the future by Agility Emerging Market Logistics

Index (AEMLI) Bangladesh is currently placed at 27. According to the Agility Emerging Market

Logistics Index (AEMLI) Bangladesh is considered as one of the 45 major emerging markets of

the world.

The government has brought about many constructive and timely reforms in the running of

businesses, and liberalized trade so that private entrepreneurs can seize opportunities of

establishing and running industrial enterprises profitably and freely.

The government of Bangladesh is endorsing the development of logistics sector in

Bangladesh by generating more modern policies for logistics and intermodal

transportation.

The government is gradually promoting the reduction of prohibitions and restrictions on

imports and exports and export diversification.

31

The government has already done a significant amount of investment in transport sector

and IT sector to facilitate trade and business.

Trade facilitation mechanisms and the reform of custom clearance procedures enhancing

the logistics industry.

The government is giving preference to the foreign direct investments which facilitates

infrastructural development including ports, power, transport and communications, and

human resources development.

The Government also promoting foreign direct investments in order to bring about

technology transfer, efficiency and management development and enhance marketing

skills.

2.2.4 Industry Specific Law:

Investment Related Laws:

The Foreign Private Investment (Promotion and Protection) Act, 1980

Foreign investments in Bangladesh vary in both expenses and duration. Although different

businesses have different procedures, the typical requirements to set up a business include a trade

license, VAT registration, import/export registration certificate (if applicable), licence from

authorities, bank account, taxpayer’s identification number (TIN) and membership of the trade

body

The Investment Board Act, 1989

ICT laws

The Bangladesh High-Tech Park Authority Act, 2010

The Information and Communication Technology Act, 2006

1. The Government and the private sector will promote business in electronic form and create an

environment in which it will be well secured. Government will take initiative to introduce and

promote Government-to-Government (G2G) transaction under the purview of e-commerce.

Gradually this initiative will also be extended from G2G to Government to Business (G2B)

transaction in the same line.

32

2. Authentication of the identities of both buyer and seller or the involved parties in an electronic

transaction is crucial to promote inter-bank transaction, encryption e-commerce. Security of

electronic transaction should be ensured through appropriate measures.

3. Establish immediately inter-banking payment system in electronic form.

4. Legal framework to provide the guiding principles, rules and legislation for e-Commerce shall

be put in place.\

Legal Issues

Software copyright provisions embodied in the Copyright Act 2000 will be implemented

by promptly setting up appropriate enforcing bodies as mentioned in the Act.

ICT Act should be enacted immediately to protect against computer crimes such as

computer fraud, hacking and damage to programs and data and introducing/spreading

computer viruses.

Data security and interoperability should be ensured through actions such as setting of

encryption standards and international agreements on interoperability.

With the increase in the use of Internet and Information Technology in every sphere of

human activities, formulation of new laws or amendment to the existing ones should be

done as deemed necessary, to ensure security of data, freedom of information.

ICT will be used by the law enforcing agencies to ensure safety and security of life and

property of the citizen.

Agencies like Police, NBR and BAC shall use ICT for quick disposal and monitoring of

investigation of cases.

Bangladesh Armed forces should use ICT to the fullest extent to increase their efficiency

and effectiveness.

33

2.3 Scope of Business:

2.3.1 Scenario of Logistic Sector in Bangladesh:

According to the Agility Emerging Market Logistics Index (AEMLI) Bangladesh is considered

as one of the 45 major emerging markets of the world. Generally, Bangladeshi logistic

companies are export based. Bangladeshi export related logistics especially that of food and

textile operate at an advanced state in comparison with the rest of the country’s logistics sector.

The development of export related logistics is stimulated by foreign freight forwarders and third

party logistics (3PL), i.e. foreign parties that offer logistics services, integrating, among others,

warehousing, transportation and other logistic services. These foreign parties mostly create joint

venture agreements with local Bangladeshi parties. These collaborations build a foundation for

creating further domestic logistical expertise.

The primary needs for rest of the logistics sector are the development of a transport

infrastructure and modern transport systems. The GoB(Govt. of Bangladesh) invests in projects

that assist the development of the Bangladeshi logistics sector. Investments have been mainly

made in water transport services of freight, road transport services of freight, air transport

services of freight and postal services. The evolution of trade policies, trade facilitation

mechanisms and, particularly, the reform of customs clearance procedures play a crucial role in

the development of the logistics sector in Bangladesh. Trade policies in Bangladesh have been

progressively liberalized and simplified during the last 10 years.

The GoB is gradually promoting the reduction of prohibitions and restrictions on imports and

exports, export diversification, and the restructuring of export and import policies in order to

better fit globalized supply chains. Public Private Partnerships (PPPs) have been acknowledged

by the GoB as the strategic vehicles for financing the development of transport infrastructure in

Bangladesh.

Parties that contribute to the development of the Bangladeshi logistics sector are donors, Non-

Governmental Organizations (NGOs), and Business Support Organizations (BSOs). Although

the GoB indeed is endorsing the development of the logistics sector in Bangladesh by generating

more modern policies for logistics and intermodal freight transportation, it can be observed from

the overview of applicable laws in the logistics sector that the legal framework in the sector is

relatively outdated with laws that were enacted in the previous century. Though the B2B logistic

service in Bangladesh is yet to bloom, there is a promising market for Delhivery Company as a

logistic service provider.

34

2.3.2 SWOT Analysis:

Strengths Weaknesses

End-user sales control and direction.

Right products, quality and reliability.

Superior product performance vs competitors.

Better product life and durability.

Have customer lists.

Direct delivery capability.

Product innovations ongoing.

Products have required accreditations.

Processes and IT should cope.

Management is committed and confident.

Delivery-staff need training.

Customer service staffs need training.

Processes and systems

Management cover insufficient.

The fragmented nature

limited access to affordable credit

Lack of use of state of art technologies

Inadequate controls & cost consciousness

Paper work

Delivery staff need training

Opportunities Threats

Support core business economies.

Could seek better supplier deals.

Supportive regulatory changes from

government

Ongoing Infrastructure rollout/buildup

Large potential domestic and international

market

New specialist applications

introduction of single Goods and Service Tax

(GST)

Exciting growth in the coming years.

Legislation could impact.

Environmental effects would favour larger

competitors.

Existing core business distribution risk.

Market demand very seasonal.

Possible negative publicity.

Vulnerable to reactive attack by major

competitors.

Competition from large foreign players

Liquidity risk

The price sensitive nature of the markets

The impact of global market conditions

Higher operating expenses leading to margin

contraction

Figure -: SWOT Analysis

35

2.3.3 PESTEL Analysis:

PESTEL analysis is a tool which determines the external marketing factors (commonly known as

macro environment factors) that have an effect on the organization. The outcome of a PESTEL

analysis pinpoints certain threats and weaknesses that a business might be unknowingly exposed

to. PESTLE analysis defines the way any business is shaped.

Figure: PESTEL Analysis for Bangladesh.

36

• Strikes

• Poltical Violence

• Misuse of Administrative Power

• Tax Policy

• Trade Policy

Political

• Business Growth

• Rate of Inflation

• Income Level

• Level of Employment

• Level of Unemployment

Economic

• Smart Phone

• Internet Availability

• Internet Speed

• GPS Applications

• Data Price Structure

Technological

• Environmental Law

• Scarcity of Raw Materials

• Sustainability of the Company

• Green ConceptEnvironmental

• Consumer's Rights

• Consumer's Law

• Labor Code

• Product Safety

Legal

• Population Growth

• Education

• Safety & Health

• Social Classes

• Social Awareness

Social

37

.2.3.4 Similar Companies Operate in Bangladesh:

Sundarban Courier Service (Pvt.) Ltd:

Sundarban Courier Service (Pvt.) Ltd. a wide selection of services provides safe and

sound delivery. They have successfully launched in the Courier field in Bangladesh since

1983.

Their head office is located at 24-25, Dilkusha C/A, Dhaka.They have about 600

Branches and Agencies of business service stations all over Bangladesh and Malaysia.

They manage the delivery and distribution for a rapidly expanding list of their active

clients consisting of Individuals, Government offices, foreign organizations, National &

Multinational Mobile Companies, Corporations, Banks, and Insurance & leasing

companies, Industries, Pharmaceuticals etc.

They have information system that allows us to obtain customer data & delivery status.

Their fleet-Their vehicle resources range from vans to trucks.

Services:

General Booking Services: General Service General Service division is one of the most

crucial divisions in comparative to other division. General Service division mainly

consisted with-A) Document B) Non Documents like light parcel.

Special Services: Special Service is mainly deals with corporate customers. This service

is under automation system.

Express Services: This is a special type of booking & delivery done with special care &

we charge very reasonable rate.

Super Express Services: This Service is extended for delivery within 8-24 hours in all

District/Pourashova area.

38

Value Declared Services: Their value declaration section is the most influential division

of Sundarban Courier Service (Pvt.) Ltd. They maintain money transfer from one

individual to another, one family to another family within Bangladesh. They don’t allow

any commercial transaction regarding money transfer from one company to the other and

one office to another. This department mainly provides two ways of service-A) Normal

Service (Within 24 hours) B) Message Transfer (MTCN through Network).

Foreign Services: This Service is extended for the Bangladeshi expatriates. This Section

receives & delivers Bank drafts, Cheques, Documents, packages through our foreign

agent. It is very easy to trace out any items by our Tracking system with our combination

of “front and back” end expertise, integration capabilities and follow-on foreign services

after deployment.

Trade Marketing Section: This section consists of collecting & delivering the goods for

many different Trading Companies under special terms & conditions.

Mobile Service: Their Mobile Service is extended for booking from our branches &

agents all over Bangladesh and we deliver delicate Mobile packages very safely.

Parcel Division: Parcel division is one of the valuable divisions of Sundarban Express

Transportation System Ltd. a sister concern of Sundarban Courier Service (Pvt.)

Ltd. Their customers range from a lot of Business documents, Electronic goods, Life

style products, Healthcare, Household materials and Food stuffs etc.

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DHL :

Air Express Services of DHL was established in Bangladesh on 10th May. DHL Express

in Bangladesh started its office through its Agent Homebound Packers & Shippers

Limited in only one room in Gulshan, Dhaka within Homebound office premises. DHL

started its operation with only 5 staffs, only one baby taxi and one delivery van.

Since it’s starting DHL expanded its operation in Bangladesh to help local business grow

globally. The timely launch of different product and services has helped to fulfill the

needs of local enterprises. DHL is the first company to have Air Side Express Handling

Unit at Airport in 1994

DHL and The Daily Star jointly launched "Bangladesh Business Award" on 6th

November, which was the first award of its kind in Bangladesh to recognize the business

laurels of the country. This award has recognized 50 business persons and institutions in

last 13 years.

DHL creates a unique bridge between Bangladesh and the world. Currently DHL Express

Bangladesh connects Bangladesh to more than 220 countries and territories worldwide

with its average weekly 120 commercial flights. There are 49 vehicles running from 5

stations to serve our customers need timely. A team of 450+ dedicated employees are

ensuring world class service in Bangladesh. DHL Express-Excellence. Simply Delivered.

40

Continental Courier Services Ltd:

Continental Courier Services Ltd. has created its market by providing door-to-door

documents and parcels delivery within the shortest possible time. As a result, the market

grew rapidly and many other companies followed Continental. But Continental Courier

Services Ltd. is always ahead of everyone, both in terms of market share and quality of

services. Continental rapidly expanded its network all over Bangladesh and till now it has

the largest network in the country. Continental Courier Services Ltd. gives its service and

•Moved to a custom built shipment processing facility of more than 30000 sq ft in Tejgaon industrial area from only a 5000 sq ft residential building.

Change of ownership- DHL International GmbH acquired 90% share of DHL Worldwide Express Bangladesh Pvt. Limited (DHLB).

2007

•DHL Worldwide Express Bangladesh Pvt. Limited took over the Agency business from Homebound under Joint Venture Arrangement from January 01. DHL International GmbH have made a direct investment of Euro 2.4 Million to acquire Agency Business.

2008

•DHLE launched Certified International Specialist (CIS); a globally award winning training program for the employees of DP DHL. CIS foundation training was launched on 10th April. 100% employees gradually attended the training.

2011

•12th DHL-Daily Star Bangladesh Business Award has been arranged. A total of 50 awards have been given as a recognition of the best of business in Bangladesh.

2012

41

sustains its leadership in the courier business through 15,000 sub agencies and service

points with over 50,000 educated and well trained directly related workforces.

Continental group and its structure:

Continental Courier Services Ltd:Continental Courier Service Ltd. is the pioneer and

the largest Courier Service in Bangladesh, having its branches throughout Bangladesh.

Continental Worldwide Express: Providing fastest worldwide door to door express

delivery & pick up services using gateways of Dubai, Singapore, Hong Kong and India.

Continental Transportation Service: Continental Transportation Service' is engaged in

handling and distributing of any sized cargo via surface to and from any location within

Bangladesh.

Air Continental (Travel Agent) : Air Continental is involved in overseas travel services

including airline ticket sales, visa processing, tour operation and hotel reservation etc.

Continental Filling Station: Continental Filling Station is located at the outskirt of

Dhaka City (on the way to Chittagong) having facilities of CNG, Diesel and Petrol.

Distribution Business: Nationwide distributor of bKash (A BRAC Bank Company),

engaged in transferring money from mobile phone account to mobile phone account.

Nationwide distributor of Pacific Bangladesh Telecom Ltd. (CITYCELL),the first

mobile phone operator in Bangladesh.

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2.3.5 Strategic Implementation:

Strategic Implementation is one of the critical activities of any business and forms the crux of

entire dealings. In the highly competitive world of today, a quality Logistics management service

keeps your company ahead of your competitors and gives you the extra edge needed to stay

ahead. It is important to understand the requirement of clients first and then act accordingly. No

two clients are the same and thus the entire procedure of planning, execution and processing

completely differs from one customer to another. Premium Logistics management service

providers take every step after great research and planning, keeping in mind the core of business

of clients and their respective needs. One needs to constantly update the procedures and

functioning of Logistics management services to be on a par with the changing business

scenario. Continuous growth, competitive prices and planned execution are some of the features

of a good Logistics management service. It also includes superior warehousing, transportation,

and Logistics solutions tailor-made to meet customers unique supply chain needs.

2.3.5.1 Development:

At Development stage, Delhivery have to develop their long term strategic plan related to

warehouse & distribution center location, Transportation modes selection, Transportation

network design, Vehicles arrangement, Sourcing strategy, sub-divide the whole region on the

basis of needs.

I. Warehouse & Distribution center Location:

Bangladesh is a densely populated country. Its divided into seven divisions. The people of the

city area are more educated & technology aware than rural area. Customers who buy products

from E-commerce site are mostly live in urban area. So, warehouse and distribution center

location have to select close to urban areas. Doing intensive analysis, strategic & cost effective

location will be –

Dhaka

Chittagong

Sylhet

Rajshahi

Khulna

43

II. Transportation modes selection:

Available transportation facilities in Bangladesh -------

Road Transportation

Rail Transportation

Inland water Transportation

Air Transportation.

Multimodal Transportation.

Road Transportation:

Road is the main transportation mode in Bangladesh. It’s fixed and variable cost is low. It’s Suit

for transportation between manufacturing facilities and warehouses and warehouses to

customers.

44

Rail Transportation:

In rail fixed cost of transportation is relatively very high but variable cost is comparatively low.

Rail is suited for large, heavy, or high density products over long distance. It’s ideal for very

heavy, low value shipments that are not very time sensitive.

Inland water Transportation:

Water transportation is limited to certain geographic areas. Bangladesh is a riverine country. So

inland water is a important mode of transportation. It’s carried down very large loads at very low

cost.

45

Air Transportation:

In Air fixed cost is large but variable cost is relatively low. It’s ideal for high- value items or

time sensitive emergency shipments, normally less than 500 lbs.

46

Multimodal Transportation:

Use of more than one mode of transportation to move a shipment to its destination is called

multimodal transportation. Its more convenient for shippers.

III. Transportation network design:

Figure: Transportation network design

System level objective

Define an objective that represent system level goal

Vehicle design

Define the variable design variables such

that the physical relationship are satisfied

Design Network

Determine the allocation of package and

vehicle to routes such that feasibility and

demand constrains

Operations

Define the vehicle operations for each route such that the capability constraints are satisfied

Ensure that the package distribution satisfies the capacity constrains

47

2.3.5.2 Operations:

In Operational level day to day & weekly work plans have accomplished. The following strategic

decision we take in operational level.

Capacity: Dhaka & Chittagong are the big ecommerce market in Bangladesh. So high

capacity facilities should install to this area.

Process technology: The technology of the equipment used in operations processes. For

example, the degree of automation used, the configuration of equipment, and so on.

Supply network: The extent to which operations are conducted in-house or are

outsourced. Decisions about vertical integration are also concerned with the choice of

suppliers, their location, the extent of dependence on particular suppliers, and how

relationships with suppliers are managed.

Planning and Control: The systems used for planning and controlling operations.

Quality: Quality management policies and practices should develop properly.

Work Organization: Organizational structures, responsibilities and accountabilities in

operations have to ensured.

Human Resources: Bangladesh Government has taken many initiatives to make the

young labor force into human resource. So many skilled human resources are now

available in competitive pay scale. It’s a major advantage for any foreign company to

make investment in Bangladesh.

New Service Development: The systems and procedures have to use to develop and

design new products and services.

Performance Measurement: In periodic basis, financial and non-financial performance

management have to measure. And also its linkage to recognition and reward systems.

48

2.3.5.3 Marketing:

Delhivery is B2B business platform. So for clients its need not to do structured marketing. But

for clients customers its provide service to optimize clients customers engagement. So, For

optimizing clients customers engagement following strategic digital marketing approach we

follow:

1. REACH:

Acquisition strategy to build awareness of off-site and in offline media to drive web presences.

Tools---

Search Engine optimization.

Pay per click Advertising.

Online Advertising.

Online PR

Social Media Marketing.

2. ACT & CONVERT

Persuade visitors to inter Act and Convert through connecting them with relevant content &

offers.

Tools---

Conversion rate optimization.

Home page optimization

Landing page optimization

A/B Testing

Lead generation Techniques

3. ENGAGE:

Retention and growth strategy to build customer and fan relationships to encourage repeat visits

and sales.

Tools---

Content marketing

Email Marketing.

Mobile marketing.

Social CRM

E- Contact strategy.

49

2.3.6 Competitor Analysis:

In Bangladesh there are a lot of local logistics and delivery companies. Many of those

Companies cannot survive for a long time due to their weaknesses and lack of expertise. The

major players in the field of logistics and delivery industries are as follows:

Company: S.A. Paribahan

Type: Courier Operation: All over the country

Branches: 38

Services:

Courier service

Transportation service

Strengths:

Market leader in courier service

Most reliable and efficient

Fair price

Own vehicle resources

Oldest and the biggest courier service

Weaknesses:

Lack of tracking facility

Lack of online activities

Relatively slow in performance

Cannot deliver On-demand

Old payment method.

Company: Sundarban Courier Service Ltd

Type: Courier Operation: All over the country

Head Office: 24/25 Dilkusha C/A, Dhaka-1000,

Bangladesh.

Phone: 9564218, 9551984, 9551656, 9556952.

Website: www.sundarbancourier.com

Number of Branches: 85

Services:

General booking service

Express booking service

Value declared service

Parcel service

Strengths:

Fair price

Consistently fast

Reliable and efficient

Wide range of services

Own vehicle resources

Weaknesses:

Only offline activities

Only delivery service provider

Lack of tracking facility

Weak customer service

50

Company: DHL

Type: Logistic and E-commerce Operation: Major cities

Head Office: Molly Capita Centre 4th & 5th

Floor 76,Gulshan Avenue, Gulshan, Rd No 127

Dhaka – 1212, Bangladesh

Phone: 01929997026

Website: http://www.dhl.com.bd

Number of Branches: 18

Services:

Shipping services

Export and Import services

Customs services and support

Green logistic solutions

Supply chain solutions

Industry sector solutions

E-commerce solutions

Strengths:

Excessive online activities

Tracking and monitoring consignments

Security and insurance

Intermodal and multimodal transport

Corporate social responsibility

Very responsive customer service.

Weaknesses:

Operating in only big cities

Very few number of Branches

Majorly involved in international

Deliveries.

Company: eCourier

Type: Courier Operation: Only Dhaka

Head Office: Roetech Centre 88/1, Progoti

Shoroni,North Badda Gulshan, DHAKA-1206,

Bangladesh.

Phone: 01819182157.

Website: www.ecourier.com.bd

Number of Branches: 03

Services:

Delivery Service

Specialized and premium postal

service

Strengths:

Local company

Low cost

Tracking delivery

Environment friendly

Weaknesses:

New and small company

Low reliability

Slow delivery

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Company: Pathao

Type: Logistic Operation: Only Dhaka

Head Office: Floor 3, House 12, Road 2/3,

Block F, Banani, Dhaka

Phone: 01733 406331

Website: www.pathao.com

Number of Branches: 02

Services:

Delivery Services

On demand delivery service

Cash on delivery service

Strengths:

Very fast and reliable

Easy tracking with Mobile app

Customer and environment friendly

Weaknesses:

Small size

Low capability

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2.3.7 Marketing Forecast based on:

A. Quantitative Study

Sample Size – 10 (B2B).

53

54

B. Qualitative Analysis :

Delhivery provides accumulated one stop ecommerce logistics supports. In Bangladesh

Delhivery have no close competitors. None of the company in Bangladesh has provides such

type of accumulated service. So we get huge advantage to install such type of company in

Bangladesh.

Key advantages:

Comparatively low pay scale employees.

Low infrastructure installation cost.

Almost all types of transportation modes.

Proper specific law and company formation guidelines.

Low competition.

Qualitative Strategy:

To accelerate overall growth:

Besides existing value creation process Delhivery should develop following things to

accelerate overall growth ----

More integrated Digital Marketing service for clients.

Develop more distribution center at strategic location.

Ensure more responsiveness.

To make adaptability in Bangladesh:

To break the probable barrier and do the business smoothly in Bangladesh Delhivery should

adapt the following strategy ----

Open a Bangla language base call center to overcome language barrier.

Make strategic alliance with local authority.

Facilitate intensive training to make workforce responsive.

Ensure proper privacy and security to build trust on online shopping.

In case of adding clients make proper analysis on the clients and ensure same

quality products for the consumers that they see in online at the time of purchase.

55

Ecommerce is one of the emerging business in Bangladesh right now. Within next 5 years most

of the products are buy and sale through online. So enabling ecommerce base logistics support

business will get huge success in Bangladesh.

So through qualitative analysis we conclude that Delhivery has great business prospect in

Bangladesh.

2.3.9 Final Recommendation :

Bangladesh has climbed to 130th of 189 economies in the World Bank’s ‘Ease of doing

Business’ in 2014 ranking. Bangladesh is also considered one of the ‘Next Eleven’ countries

having the potential to join the BRICs in becoming one of the world's largest economies in the

21st century.

Bangladesh could offer great opportunities and prospects to those who carefully select a reliable

local partner in Bangladesh after performing due diligence and feasibility studies prior to making

any investment.

A prerequisite for any investment initiative is to have thorough knowledge of the coverage scope

and goals and objectives of the company within the parameter of the organization’s strengths and

skills. Future investors should have sound knowledge of governmental laws and regulations

related to the start-up of any venture especially due to complexities in remittances and taxation.

Also investors should be prepared to encounter adverse situations such as natural disaster and

catastrophes.

Bangladesh has one of the most liberal investment regimes in South Asia. Bilateral Investment

Treaties (BITs) for the promotion and protection of foreign investment give Bangladesh tariff-

free access to the EU and its Generalized System of Preferences as well as to Canada, Australia

and Japan.

The assurance of on-time quality and quantity in the provision of competitive logistics services is

very important in Bangladesh. In this respect, the familiarity with the logistics technical know-

how and innovative technology is a competitive advantage while investing in the logistics sector

in Bangladesh. The creation of healthy working environments with world class trained

employees is also important.

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Appendix- 01: Survey questionnaire:

Part 1 – Company Profile

Company Name:

Address:

Website:

Industry:

Contact no:

Email:

Part 2 – Survey

1. How do you manage your logistics Service? (Tick all that may apply).

Close partnership with Carrier

Outsourcing

Own logistics facilities

57

2. What areas are most important to improve? Please rank these items from 1 to 7 in order of importance to you. (1 being the most important):

Reliability

Availability

Transit

On-time

Expense

Customer service

Supply Chain Visibility

3. How many carriers do you currently manage? 1 – 3

4 - 6 7–10

11 or More

4. What is your approximate annual freight spending?

5. What percentage of your gross sales revenue are approximately freight expenses annually?

Tk.

1 2 3 4 5 6 7

58

6. What types of Digital Marketing tools is your company using at this moment? (Tick all that

may apply).

Email marketing. Mobile marketing

Search Engine Marketing Social media marketing Content marketing

7. What type of supply chain strategy your company follows??

Very responsive.

Responsive. Efficient. Very efficient.

8. Please tick the following services your organization uses: (Tick all that may apply).

Port and/or terminal operator

Logistics Service Provider (warehousing and/or added value activities). Multimodal transport operator

Port and/or terminal authority Single mode transport operator

9. Please tick the modes that your organization currently uses: (Tick all that may apply).

Inland waterway Sea

Road Rail

Air Intermodal

10. Logistics quality standard requirement should be set by the market.

Agree Disagree

No comment. 11. Free and fair competition is the only way to improve logistics service quality.

Agree

Disagree No comment

12. We can only trust transport logistics systems through quality contracts.

Agree Disagree

59

No comment

13. Which transportation and logistics challenges are most critical to your customers? (Please check all that may apply.)

Cost Reduction

Corporate Social Responsibility

Customer Service

Data Management (Big Data, Quality, Synchronization)

Demand Forecasting

Global Expansion

Integration (Business Process, Technology, etc.)

Inventory Management

Labor

Omni-channel Management

Risk Management

Security

Sustainability

Transport Optimization

Visibility

Responsiveness

14. How successful do you think is your company in managing its logistics & Digital marketing in

general?

Not successful at all

Not successful

Somewhat successful

Successful

Very successful

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15. Does your company have a separate logistics department?

YES

NO

16. Does your company have a clear logistics strategic plan?

Yes No

17. How satisfied are you with the current public policy regarding logistics and IT?

Not at all

Somewhat

Satisfied

Quite satisfied

Very satisfied