TSRTC Logistics Franchise Registration: Steps, Requirements, and Benefits

Author: Tata nexarc | Published on: 15 November 2024 | 5 min read

Table of contents:

The Telangana State Road Transport Corporation (TSRTC) has expanded its services beyond passenger transport to include logistics, offering a unique franchise opportunity for entrepreneurs. This initiative leverages TSRTC Logistics extensive network and infrastructure, providing a platform for individuals to enter the logistics sector with the backing of a reputable organization.

TSRTC and Its Logistics Services

Established in 2015, TSRTC operates a fleet of approximately 9,700 buses, serving both urban and rural areas across Telangana. In June 2020, TSRTC launched its Cargo and Parcel Services, utilizing its existing bus network to transport goods efficiently. This venture has proven successful, with TSRTC generating ₹70 crores in revenue from logistics services in the fiscal year 2022-23 and aiming for ₹120 crores in 2023-24.

Importance of Choosing the Right Logistics Partner

Selecting a logistics partner with a robust network and reliable services is crucial in today's fast-paced market. TSRTC's extensive reach within Telangana and neighbouring states ensures timely and secure delivery of goods, making it a dependable choice for businesses and individuals alike.

Why opt for a TSRTC Logistics Franchise?

Partnering with TSRTC offers several advantages:

• Established Network: Access to TSRTC's comprehensive transportation network facilitates efficient goods movement across the region.
• Brand Recognition: Association with a trusted public sector entity enhances credibility and customer trust.
• Support Infrastructure: Franchisees benefit from TSRTC's existing infrastructure, including bus stations and cargo handling facilities.

High Demand Locations : Delhi , Mumbai , Pune , Bangalore , Coimbatore , Chennai , Hyderabad , Ahmedabad , Kolkata

TSRTC Logistics Franchise Business Model

The TSRTC logistics franchise model allows individuals to operate cargo and parcel services under the TSRTC brand. Franchisees manage operations such as booking, handling, and delivery of goods, with support from TSRTC in terms of training and operational guidelines.

Key Features of the TSRTC Logistics Franchise

• Comprehensive Support: TSRTC provides training and operational support to ensure franchisees adhere to service standards.
• Access to Infrastructure: Franchisees can utilize TSRTC's bus stations and cargo facilities for operations.
• Marketing Assistance: Support in marketing and promotional activities to attract customers.

Target Market for TSRTC Logistics Franchise

The franchise model caters to both urban and rural markets within Telangana and neighbouring states. The extensive reach of TSRTC's network allows franchisees to serve a diverse customer base, including businesses and individuals requiring reliable logistics services.

Eligibility Criteria for Franchise Registration

To qualify for a TSRTC logistics franchise, applicants should meet the following criteria:

1. Capital Investment:

• Initial Investment: Approximately ₹5-10 lakhs, covering franchise fees, infrastructure setup, and initial operational costs.
• Working Capital: Sufficient funds to manage daily operations for at least the first 3-6 months.

2. Infrastructure Requirements:

• Storage Space: A minimum of 300-500 sq. ft. dedicated area for sorting and storing parcels.
• Delivery Vehicles: Ownership or lease of vehicles suitable for local deliveries, such as bikes or small trucks.

Location Criteria: The franchise location should be easily accessible to major markets and residential areas to ensure efficient deliveries.

3. Experience and Skills:

• Management Experience: Prior experience in logistics or business management is advantageous.
• Basic IT Skills: Familiarity with using logistics software and handling basic computer operations is necessary.

4. Legal and Documentation:

• Business Registration: Ensure your business is registered as a legal entity (e.g., sole proprietorship, partnership, or private limited).
• GST Registration: Mandatory for all franchisees to handle financial transactions.
• Police Verification: Clean background check required for franchise approval.

5. Manpower and Staffing:

• Minimum Staff: 3-5 employees, including delivery personnel and administrative staff.
• Training Commitment: Ensure that all staff are trained according to TSRTC's standards for operations and customer service.

Compliance with Company Policies: Follow TSRTC's operational guidelines, including delivery timelines, customer service protocols, and branding requirements.

Steps for Franchise Registration

1. Conduct Initial Research: Assess local demand for logistics services, evaluate TSRTC's offerings compared to competitors, and ensure financial readiness and relevant business experience.
2. Submit Your Application: Visit TSRTC's official website or contact the Cargo & Parcel department, complete the application form with accurate details, and prepare digital copies of essential documents.
3. Prepare Required Documents: Gather identity proof, financial statements, property documents, and business registration certificates, ensuring all documents are up to date.
4. Undergo Evaluation and Interviews: Be prepared for interviews to assess suitability and highlight strengths and relevant experience.
5. Finalize the Franchise Agreement: Review the legal agreement thoroughly and consult a legal professional if necessary.
6. Attend Training and Onboarding Sessions: Participate in comprehensive training on logistics management and familiarize yourself with TSRTC's operational procedures.
7. Launch Your Franchise: Promote your franchise using TSRTC's marketing resources and offer initial promotions to attract customers.

Required Documents for TSRTC Logistics Franchise Registration

• Proof of Identity and Address: Aadhaar Card, PAN Card, Passport, or Voter ID.
• Financial Statements and Bank Details: Last 6 months of bank statements and Income Tax Returns (ITR) for the past 2-3 years.
• Property Ownership or Lease Agreement: Property ownership deed or a valid lease agreement with a minimum tenure as required by TSRTC.
• Business Registration Certificate: Company registration documents such as GST registration or a Shop and Establishment license.
• NOC (No Objection Certificate): NOC from property owner if leasing, ensuring that the property can be used for business purposes.
• Proof of Experience (if applicable): Certificates or letters from previous employers or any logistics-related experience documentation.
• Photographs: Recent passport-sized photographs of the applicant and key partners (if applicable). These photographs will be used for official records and identity verification.

• Letter of Intent (LOI): A formal Letter of Intent that expresses your interest in becoming a TSRTC franchisee and commitment to abide by the franchise guidelines.

Investment and Cost Breakdown for TSRTC Logistics Franchise

Understanding the financial implications is critical when considering a TSRTC logistics franchise. Below is a detailed breakdown of the investment and associated costs:

1. Initial Franchise Fee: ₹1 lakh to ₹2 lakhs (varies by location and market demand).
2. Infrastructure and Setup Costs:

• Storage Facility: ₹3 lakhs to ₹5 lakhs. Covers the cost of setting up a warehouse or storage area for parcel sorting.
• Delivery Vehicles: ₹5 lakhs to ₹8 lakhs. Costs depend on the number and type of vehicles required, such as two-wheelers, small vans, or trucks.

1. Operational Costs:

• Staff Salaries: ₹1 lakh to ₹2.5 lakhs annually. Includes payment for delivery personnel and administrative staff.
• Maintenance: ₹50,000 to ₹1 lakh annually. For vehicle and equipment upkeep to ensure smooth operations.

1. Ongoing Royalty Fees and Revenue Sharing: Royalty Fee of 5% to 7% of gross revenue. Paid to TSRTC for brand use, marketing, and operational support.
2. Marketing and Advertising Budget: ₹25,000 to ₹50,000 annually. Primarily for local promotional activities. TSRTC may provide additional support through regional campaigns.
3. Miscellaneous Costs:

• Technology Integration: ₹50,000 to ₹1 lakh annually. Includes expenses for using TSRTC's parcel tracking system and other logistics software.
• Insurance: ₹20,000 to ₹50,000 annually. Covers risks related to goods transportation and delivery.

Total Initial Investment Estimate: ₹10 lakhs to ₹15 lakhs for setting up and operating a TSRTC logistics franchise.

Benefits of Owning a TSRTC Logistics Franchise

1. Established Brand: TSRTC is a trusted name in Telangana, offering built-in credibility to franchisees.
2. Extensive Network: Franchisees gain access to TSRTC's robust network, which includes thousands of buses and multiple depots.
3. Affordable Investment: Compared to private logistics franchises, TSRTC's initial investment requirements are more accessible.
4. Regional Focus: TSRTC's strong presence in Telangana ensures a solid customer base in urban and rural areas alike.
5. Sustainability: Leveraging public infrastructure ensures cost efficiency and reduces the environmental footprint.

Growth Opportunities and Expansion 

1. Diversification of Services: Introduce value-added services such as express delivery and same-day shipping.
2. Expansion to Neighbouring States: Extend TSRTC's logistics franchise model to regions like Andhra Pradesh, leveraging existing demand.
3. Technology Integration: Adopt advanced tools like AI-based routing for optimized deliveries and cost savings.
4. E-Commerce Partnerships: Collaborate with local e-commerce businesses to secure steady cargo volume.

Conclusion

Partnering with TSRTC Logistics Franchise offers a gateway to the thriving logistics industry, leveraging a trusted network and robust infrastructure. With affordable investment, comprehensive support, and access to Telangana's urban and rural markets, franchisees can deliver reliable services and grow sustainably. TSRTC ensures operational efficiency through training, technology, and marketing assistance, making it ideal for entrepreneurs seeking stability and growth. Elevate your business further with Tata nexarc, a platform designed to empower MSMEs with financial tools, operational insights, and growth opportunities. Together, TSRTC and Tata nexarc provide the perfect foundation for a successful logistics enterprise. Start today!