Spicejet which is one of the largest airline in the country by no. of domestic passengers, has increased their cargo business and introduced door to door delivery service for their corporate customers. Cargo and logistics is a growing business for spicejet. They used to outsource the business but they are now handling it themselves. They have tie up with courier firms and made new recruitment’s for door to door cargo delivery.

Spicejet was on the verge of closure in 2014, but they managed a comeback. They came back not only with on the back of passenger’s revenue but also on the ancillary business front. At the beginning of 2015, it was at six percent where the spicejet revenue from the ancillary business stood. It increased to 16 percent at the end of October December. The management team looked for other sources of income to maintain their growth.

Logistics and Supply Chain Management Courses

Spicejet posted consecutive profitable result with Rs 232 crore profit. The airline currently has many aircraft’s which include mix of Boeing 737, Airbus A-320 and Bombardier Q-400 aircraft. To recover the lost ground, spicejet recruited 70-80 pilots and invested in pilot training academy. They got into exclusive agreement with eCommerce to deliver products. Airlines are necessary for the eCommerce firms. They need airlines for the delivery of their goods to their customers as well as get delivery from various suppliers. The main thing they needed is the air connectivity.

Cargo operations form an intrinsic part of their business. They are confident that the technology platform will add their efficiency and will ensure that their shipment / goods are tracked well i.e. from the point of booking to point of delivery. More common user terminals are made by spicejet across various airports in country. This will enhance the movement of domestic cargo and standardize cost.  Reliant Institute of logistics provides Logistics and Supply Chain Management Courses in kochi

Amazon India’s Logistics division expands their warehousing network for Rs 207 crore

ATS-Amazon Transport Service has received Rs 207 crore worth international funding in logistics and warehousing from Singapore based Amazon Corporate Holdings and Amazon Malaysia reported by The Economic Times.  It has been reported that this is the second time where the international logistics funding was received, of Rs 67 crore in September 2016.

This new investment in the expansion helps in developing an increase in adding new fulfillment centres all across the country. They also focus in the steady expanding in grocery and household item delivery services: Amazon Pantry.

During the last few months company has doubled the storage capacity by setting up 7 new fulfillment centres by the end of current quarter. Also as part of gradual expansion they are setting up new fulfillment centres in Telangana, Haryana, Maharashtra, Madhya Pradesh, Uttar Pradesh and Andhra Pradesh, which is huge in space for storing huge appliances and furniture’s.  Last year the Amazon have opened around 6 fulfillment centres in country in Chennai, Mumbai, Delhi and Jaipur to expand its services. During that period 80% of sellers make use of the fulfillment services. Also the company is planning for increase in fulfillment capacity for sellers by 26% in this year.

Amazon India's Logistics division expands their warehousing network

Amazon has also expanded services of Pantry to seven more cities and now totally available for total 34 cities in India and in next 3 months the supply chain management network will be expanding its service to 13 more cities.  The grocery delivery service called Kirana Now (Amazon Now) has been established to Delhi NCR, Mumbai, Bangalore and Hyderabad where it was launched in Bengaluru last year, for the purpose of delivering perishable items ordered within two to four hours. Also the company has got nod form Department of Industrial Policy and Promotion (DIPP) to stock and sell local grocery products online. Also an application was filed in February to make an investment of $500 million for the online food retaining which creates its own supply chain for delivering fresh produce and retail food.


Japan planning to invest in the Chabahar Port Project

Japan’s Ambassador Kenji Hiramatsu has told that Japanese government is looking forward for the investment in Chabahar Port project with the Indian government. The port which named Chabahar is a seaport located in Southeastern Iran on the Gulf of Oman. As the India possess the rights to develop 2 berths out of total 10 berths and an investment of $85 million as equipment and $150 million as lend is allotted for 2 berths and 5 jetties by Indian Government, and in final total of $20 billion will be invested by India.

Ambassador has stated that “We are interested in connectivity projects and to make sure that this region is free and open and an important port like Chabahar is good for regional connectivity … I can’t tell when it will materialize, but we have expressed our interest” This investment helps to build trade and transit routes from the strategically located Iranian port into Afghanistan and Central Asia. This is a breakthrough for the southern ports such as Kochi, Mangalore and Gujarat, helps in the growth of logistics and shipping industry.

Why Japan gets motivated for doing investment in Chabahar Port project?

Japan is planning to invest in this project as project’s economic viability as well as the strategic value. The main reason is Japan is depending mainly on hydrocarbon importing from Persian Gulf. Japan’s 80% requirement is imported and from them since they are the prime exporters, so Tokyo’s prime agenda is to strengthen its ties with Iran which is an oil producing nation. It’s also a part which is against the ongoing China-Pakistan economic corridor (CPEC) which became a threat to sovereignty to India. Chabahar port and the CPEC’s Gwadar port has only 72km distance between them. When we look through Chabahar with other ports in Pakistan, Sri Lanka and Bangladesh makes military diplomatic area in world’s map.

Outcomes in the future

Chabahar port is considered as an alternative for logistics and shipping management services between India and Afghanistan. Since the development has started most of the logistics and supply chain business has shifted from Karachi port to Chabahar. Japan’s financial support to India is a flagship program for strengthening the bonds between two nations and for the extended support in Asia-Pacific region. In means of counter terrorism Japan’s keen interest is to provide security social and political issues. Logistics trade with Russia, Afghanistan, Iran, Europe and Central Asia is expected to increase comparing to Pakistan, when India’s trade route get established with these countries. Japan investment not only facilitates in terms of money, they may be having exchange in technology within the workforce for increasing the productivity.


Government starts multiple waterways transportation for cargo movement

Government has started integration in cargo transportation along multiple waterways, and started with cement consignment from the banks if Rupnarayan in West Bengal to Bhagalpur in Bihar with 240 tonnes.

Cochin Port Trust to finish the Outer Harbor Project by 2020

Cochin port Trust (CPT) doing the Outer harbor project worth Rs 30,50 crore will be ready by 2020 as per the plan. This helps to modernize the port and expand the coastline for the growth of the India. Funding have been given from Indian Navy of Rs 1050 crore.

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