Air Transportation and Travel
Deregulation, greater mobility, increased price consciousness, and new IT developments are just some of the challenges confronting the air and travel industry. In recent years our experts have supported clients (including several of the largest airlines worldwide) in meeting these challenges and resolving their most urgent issues.
Air transportation. With the advance of low-cost carriers and online ticketing, the price and service expectations of air travelers have changed drastically. While the major airlines can expand their global networks, they must control their costs, make their pricing more transparent, and improve their service. The opportunity to capture additional value in operations remains substantial. The successful implementation of lean management principles in maintenance, ground, and other service areas can result in sustainable productivity gains for many airlines. For example, turnaround times can be shortened by up to 25 percent. Airlines that opt for a hub-and-spoke system can adjust flight plans and thereby improve flight capacity utilization and reliability. With more international alliances and partnerships comes the need to reconfigure networks and adjust the fleet mix. Our practice has extensive expertise and experience in addressing these topics in both the air passenger and air freight industries. We have developed innovative approaches to customer segmentation as well as pricing. We leverage sophisticated tools for network modeling. We have detailed knowledge of lean process improvement and business strategy alignment.
Postal, Express, and Parcel Services
In addition to new technologies and systems, globalization, deregulation, and privatization have been the key drivers of change in the post and express world over the past two decades.
Numerous postal companies have successfully navigated the path of privatization from state monopolies to become listed companies. Others are poised to begin this journey. The challenges are huge.
A clear strategy, supported by strong management, detailed planning, and transparent processes, is vital to a corporate transformation.
We Leading Point Company at this point help our clients identify and pursue growth opportunities in all relevant market segments, both domestically and abroad. We support them as they position themselves to meet regulatory requirements and accompany them on the road to successful privatization. We support them in developing strategies to optimize value-add operations and processes and in implementing performance-management and staff-development systems.
Rail and Public Transport
The key drivers of change globalization, deregulation, and privatization in the post and express world over the past two decades. Postal companies under many different names have navigated the path of privatization from state monopolies to become listed companies effectively. Others are hovering to begin with this stream, as there are huge challenges.
Our team are detailed orientated as in planning, and transparent. Leading Point helps their clients to recognize and follow growth opportunities in all relevant market segments, both domestically and abroad. We support them as they position themselves to meet regulatory requirements and accompany them on the road to successful privatization. We support them in developing strategies to optimize value-add operations and processes and in implementing performance-management and staff-development systems.
Increasingly, logistics service providers face challenges that cannot be overcome by traditional approaches. For example, the competencies and organization required to optimize global supply chains are completely different from those needed to provide traditional transport services while minimizing direct costs.
Our work with leading logistics companies spans a range of topics, including developing growth strategies, addressing the industry's growing internationalization and demand for more comprehensive services, and supporting lean transformation and operational improvement initiatives on the shop floor.
Our practice supports clients in adapting to the ever-changing market context and in capturing new opportunities. We leverage more than 40 years of industry experience combined with outstanding functional expertise in areas such as operations, corporate finance, organization, and sales and marketing.
Shipping and Ports
Ships are vital to worldwide trade. Container ships are among the largest oceangoing vessels and considered the pack mules of the global economy. The growth of ocean freight is far stronger than the growth of any other shipping or transportation sector.
Shipping can be very profitable. However, the business is cyclical, with periodic overcapacity. Price competition is steep. Over the long term, many companies cover their cost of capital but do not earn a profit. The industry is also very fragmented, although recent signs indicate a move toward consolidation. Container shipping, on the other hand, is somewhat concentrated. Container terminals are also dominated by global players. Industry leaders are making substantial investments to expand port capacity and build the necessary connections inland.
Our practice has served companies along the entire value chain, on topics ranging from corporate strategy redesign to logistics network planning, demand-based customer segmentation, risk management, and operational-improvement programs using lean principles.
The current count of hotel rooms in India is 130,000, and the country is expected to require an additional 50,000 rooms over the next two to three years, according to World Travel and Tourism Committee (WTCC) estimates
US-based hotel chain, Marriott International, plans to expand its network in India to 100 hotels over the next five-years, stated Arnie Sorenson, Chief Operating Officer, Marriott International. At present, the group operates 11 properties across the country. Roots Corporation, a subsidiary of Indian Hotels Company (IHC), plans to open 60 to 70 budget hotels, known as Ginger Hotel, in 23 locations across the country. ITC, the Kolkata-based cigarette major, also projected its plan to open 25 new hotels under the Fortune brand over the course of next 12-18 months (or by 2011).
The Road Ahead
The Indian hospitality sector is certainly the most apt replication of the belief 'Atithi devo bhava'- touch of tenderness, a helping hand and a welcoming visage. According to the Tourism Satellite Accounting (TSA) research, released by World Travel and Tourism Council (WTTC) and its strategic partner Oxford Economics in March 2010:
The contribution of travel and tourism to Gross Domestic Product (GDP) is expected to increase from 8.6 per cent (US$ 117.9 billion) in 2010 to 9.0 per cent (US$ 330.1 billion) by 2020. Export earnings from international visitors and tourism goods are expected to increase from US$ 11.1 billion in 2010 to US$ 33.6 billion in 2020. Travel and tourism investment is estimated at US$ 34.7 billion or 7.2 per cent of total investment in 2010. By 2020, this should reach US$ 109.3 billion or 7.7 per cent of total investment. Ministry of Tourism aims to create a comprehensive and coordinated framework for promoting golf tourism in India, capitalizing on the existing work that is being carried out, and building upon the strength of India’s position as the fastest growing free market economy.
Resturant Market Emerges as Hot Investment Target (Article)
New Delhi: As more Indians with higher disposable income take to dining out, the hitherto-fragmented restaurant market, estimated at over Rs 1 lakh crore, is emerging as a hot investment target. Moods Hospitality-owned Chinese fast food chain Yo! China plans to raise around Rs 50 crore over the next few months.
Also, New York-based India Equity Partners is in talks to buy out the food services company, Sagar Ratna , an ethnic food retailer which runs a chain of outlets specialising in south Indian cuisine. The food company has been on the block for over a year now. "With growing middle-class incomes and urbanization, we see increasing trend of people dining out. This is why mass market food chains and restaurants are seeking to expand," said Gaurav Mathur, MD at Indian Equity Partners .
The private equity firm has earmarked funds up to $100 million for acquisitions in the in the fast growing food sector. As per the Food Franchising Report, 2009, prepared jointly by Ficci-CIFTI and Franchise India Holdings, almost one-third of the working class eat out at least once a month and a majority of them spend Rs 101-150 per meal.
Private equity firms are increasingly queuing up to invest in restaurant chains as they seek capital to meet growing demand. "The level of penetration of food services and restaurants category in India when compared to some of the more developed markets is much lower and is bound to go up," said Mayank Rastogi, partner (private equity) at Ernst & Young.
"The financial backing helped us develop our back-end operations and build our supply chain," said Ashish Kapur, co-founder and MD at Yo! China. He, however, declined to comment on his plans to raise additional money for the company. Moods Hospitality received its first round of funding of Rs 25 crore from private equity investor Matrix Partners India in 2006. Chennai-headquartered TVS Capital recently invested $11 million in Om Pizzas & Eats. Other prominent investments in the sector include Darby Overseas Investments' funding of $25 million in Cafe Coffee Day, Chess Capital's $38 million in US Pizza and SAIF Partners' Rs 90-crore investment in Speciality Restaurants.