BLUE DART EXPRESS LIMITED Blue DartCenter, Sahar AirportRoad, Andheri!East), Mumbai - 400 099, India T11I; 2839 6444 Fax: 2824 4131 CIN: L61074MH1991PLC061074 www.blu11dart.com [email protected] July 05, 2019 To, To, BSE Limited National Stock Exchange of India Ltd Phiroze Jeejeebhoy Towers, Exchange Plaza, C-1, Block G Dalal Street, Fort Sandra Kurla Complex, Sandra East, Mumbai - 400 001 Mumbai - 400 051 Scrip Code - 526612 NSE Symbol - BLUEDART Sub: Annual Report 2018-19 & Annual General Meeting Notice Dear Sir/ Madam, Please find enclosed herewith Annual Reportof the Company along with Notice dated May 16, 2019 convening Twenty Eighth Annual General Meeting of the members of the Company scheduled to be held on Wednesday, July 31, 2019 at 4.30 p.m. at Chancellor I, Hotel Hilton Mumbai International Airport, Sahar Airport Road, Andheri (E), Mumbai 400 099 to transact the business as set out in the aforesaid Notice. We request you to kindly take the same on record. Thanking you, Yours faithfully,� For Blue Dart1EXl�s'· C.td. /ir:' .. vu'� 0. rJl..J Gunil8\:�- \\Jf" �)J� Company Se�)�� Head-Legal & Compliance 28th ANNUAL REPORT INNOVATION 2018-2019 INDIA’S MOST INNOVATIVE & AWARDED EXPRESS LOGISTICS COMPANY BLUE DART EXPRESS LIMITED | CONTENTS | ANNUAL REPORT 2018-2019 1 2 BLUE DART EXPRESS LIMITED | VISION | ANNUAL REPORT 2018-2019 BLUE DART EXPRESS LIMITED | VISION | ANNUAL REPORT 2018-2019 3 4 BLUE DART EXPRESS LIMITED | GUIDING PRINCIPLES | ANNUAL REPORT 2018-2019 BLUE DART EXPRESS LIMITED | GUIDING PRINCIPLES | ANNUAL REPORT 2018-2019 5 6 BLUE DART EXPRESS LIMITED | BOARD OF DIRECTORS & KEY MANAGERIAL PERSONNEL | ANNUAL REPORT 2018-2019 BLUE DART EXPRESS LIMITED | EXECUTIVE MANAGEMENT | ANNUAL REPORT 2018-2019 7 CHAIRMAN'S STATEMENT Sagarmala which aim at strengthening the countrywide road network and improving connectivity. Dedicated Freight Corridors will aim to decongest a heavily saturated road network and reduce freight transit times across industrial heartlands in landlocked India to ports on the eastern and western coast of the country. The government must speed and scale the execution of rail, road, sea and air projects. Sufficient budgetary provisions and fund allocations should be made for the seamless development and implementation of infrastructure projects. Besides this, the country has also witnessed a regulatory boost with key reform measures and policy interventions like the Goods and Services Tax (GST), e-way bill, relaxed FDI regulations and granting of infrastructure status to the logistics industry which boosted its core Dear Stakeholders, competencies. The industry hopes that the government will revisit the existing tax rates under GST to simplify the structure that will benefit India has emerged as the fastest growing major economy in the world various industries including logistics. with a GDP that is growing at 7% and is expected to reach US$ 6 1 trillion by Financial Year 2027 making it the third largest economy in The future is more complex than ever before. The express logistics the world overtaking Japan. business is experiencing change led by a heightened competitive environment, new entrants and in-house logistics (captive) business Inspite of a favourable long term outlook, in the short term, the models of some of Blue Dart’s major e-commerce customers. business environment has been challenging. It has remained volatile, uncertain, challenging and ambiguous – VUCA, this is becoming the Amidst this scenario, your Company performed well this year and ‘new normal’. The GDP growth slowed to a five-year low of 5.8% in the continues to offer a wide range of innovative and simplified solutions 2 January – March quarter this year. According to the global ranking across industry sectors, coupled with a dedicated air and ground of the World Bank’s Logistics Performance Index, India moved to network, high-standard technology architecture, value pricing, th th 44 rank in 2018 from 35 rank in 2016 in terms of overall logistics customer centricity, excellent service quality and operation delivery par performance. excellence. Your company is certified to the ISO 9001 standards and has re-certified to the new global ISO 9001-2015 standards. India’s logistics network is USD 160 billion market for the Financial Year 2018 and is estimated to touch USD 215 billion by Financial Year The Company’s market leading services and expertise is highly 3 2020, growing at a CAGR of 10.5% . The express logistics industry regarded, and is a global benchmark operating to international that your Company operates in, is fast changing with competitors standards. A reflection of the true blue characteristic and ‘The Blue that are hyper active and customers are extremely demanding. The Dart Way’ – a way where excellence is always a habit. industry is growing strongly with higher levels of investment. It is also undergoing continuous change in its security infrastructure and Your Company also remains one of the best managed organisations upgrades in automation and technology, these factors are turning to be in India, established by a strong brand built by a team of committed the most important aspects in differentiating business. and passionate people. Blue Dart has been certified as one of India's best Companies to Work For 2019 by Great Place to Work Institute, The re-election of the government for the second term, confirms India, ranked No. 1 amongst the Best Multinational Workplaces in stability at the centre. We hope to continue to witness renewed energy, Asia by Great Place to Work - Asia’s Best Workplaces – 2019 and has focus and earnestness. Amidst the rising uncertainties and economic been recognised as a Company with Great People Managers by Great challenges on both domestic and global front, there is an urgent need Manager Institute and Forbes. to re-energise the engines of growth and refuel the economy. The Union Budget which is due to be presented shortly in July 2019, is an In the year gone by, 99% of Blue Darters participated in the Annual opportunity for the government to boost consumption and investments Employee Satisfaction Survey (ESS). Pride in working for Blue Dart through appropriate fiscal stimulus and policies. The budget is also clearly emerges as the highest score at 97.2%. Your Company’s expected to set in motion the direction that the government will take in employee engagement and motivation are at the zenith and Blue Dart the next five years. today is truly at an inflection point. The government has reiterated its steadfast commitment to Your Company posted ` 8,760 Lakhs profit after tax for the year modernizing the enablers of Indian logistics with a key focus on ended March 31, 2019. Income from operations for the year ended infrastructure development with initiatives such as Bharatmala and March 31, 2019 was ` 3,16,546 Lakhs. Your Company carried over 1 IBEF 2 Mint 3 IBEF 8 BLUE DART EXPRESS LIMITED | CHAIRMAN’S STATEMENT | ANNUAL REPORT 2018-2019 2,332.71 Lakhs domestic shipments and over 9.16 Lakhs international auto-route applications, deployment of parcel lockers, electrical shipments weighing over 754,981 tonnes during the same period. vehicles and investments in high-standard technology architecture including a contemporary website. The Board of Directors of your Company has recommended a Dividend of ` 12.50/- (Rupees Twelve and Paisa Fifty only) per equity share for In addition, Your Company continues to tap into social media and the year ended March 31, 2019, subject to necessary approval by the address customer requirements through its official Facebook, Twitter, members in the ensuing Annual General Meeting. YouTube and LinkedIn pages to reach an extensive audience base and rapidly growing followers. As India’s most innovative and awarded express logistics company, your Company is acknowledged for its international standards, Strong Corporate Governance has always been an integral part innovation, technology, value, quality, efficiency and responsiveness of the Company’s business philosophy. Building community trust and strong Corporate Social Responsibility. through responsible and sustainable management of its business is an indispensable part of Blue Dart. The Company is committed to Over the years, Blue Dart has always been the first to identify its Living Responsibility motto. Living Responsibility or in common opportunities through exhaustive market research, business parlance, ‘Corporate Responsibility’ is a core element of Blue Dart’s intelligence, customer feedback and regular market scanning and corporate strategy. Your Company (along with DPDHL group) focuses analysis. its corporate responsibility on environmental protection (GoGreen), In 2018, Blue Dart rolled out a strategic plan to counter the challenging disaster management (GoHelp) and championing education business environment, intensify its focus and strategically maintain & (GoTeach). Blue Dart is also part of Green Freight Asia (GFA), a strengthen its leadership in the market. network of Asian road freight companies working together to improve fuel efficiency, reduce CO2 emissions, and lower logistics costs across As part of the strategy, your Company embarked on two key initiatives the entire supply chain. Your Company continues to be aligned to the aimed at bringing long term benefits to customers and win in every group’s Mission 2050: Zero Emissions goals. geography. The first one being DAWN - Deliver Any Where Now successfully enabled the company to aggressively expand its reach Overall, it was