From the pages of CargoTalk: It’s difficult for asset heavy companies to survive the rising diesel price: Chander Agarwal

Sharing his views on continuous hike in diesel price, Chander Agarwal, Managing Director, TCI Express, informs, “Most of the logistics companies in India are asset heavy. These companies cannot survive due to the increasing diesel price. They can have growth of 60-70 per cent but their bottom line will be 40 per cent. And, imagine 95 per cent of the unorganised economy is having heavy losses; how they are going to continue providing services? The government has to get a hold on this.”
Suggesting the solution, he continued, “One important way of doing that could be if there is a change in diesel price, the manufacturing companies which are using the transportation services should be made liable to pay for that change. If the government imposes this on manufacturing companies, a large chunk of the unorganised segment will not face a massive cash crunch and they will be able to survive longer.”