This website uses cookies to ensure you have the best experience. Learn more

Logistics Sector In India Essay

2671 words - 11 pages

T. B. S. Anil krishna,
The Emerging Market Survey, 2011 conducted by Transport Intelligence highlights India’s attractiveness as a strong growth area for logistics in the future. The survey found that nearly half of its respondents agreed that India would merge as a major logistics hub in the future. Furthermore, FMCG majors, White Goods and Consumer Electronics firms are also on an expansion spree and are steadily increasing their footprint across the country. Built – to- suit options have been the preferred mode of expansion for most occupiers, with large sized transactions of around 10,000 – ...view middle of the document...

Sources also estimate that the industry employs over 45 million people and is growing at the rate of 15% with sub-sector growing at even 30-40% per annum. The Emerging Market Survey, 2011 conducted by Transport Intelligence highlights India’s attractiveness as a strong growth area for logistics in the future. The survey found that nearly half of its respondents agreed that India would merge as a major logistics hub in the future. The warehousing and logistics industry continued to witness an increase in market activity during the first half of year 2012. The demand for logistic and warehousing spaces was not only limited to leading cities such as NCR (National Capital Region), Mumbai and Bangalore, but was also spread across leading tier II cities as well. E-tailers have invested heavily into strategically located assets, and have been taking up quality warehousing space across India. The major footprint has been in NCR, Mumbai and Bangalore with smaller redistribution points in other metros.
The Logistics industry includes five broad segments -
(i) ocean freight,
(ii) air freight,
(iii) rail freight,
(iv) trucking and
(v) third party logistics (3PL) services
Indian Logistics industry is valued at around US$30bn. The industry is projected to see a growth at a 12 - 15% CAGR to US$54bn by 2012. Growth of logistics industry largely depends on infrastructure availability. Government spending and involvement of private players will catalyze the growth of the industry. Government programs and measures such as establishment of logistics parks and investment-linked tax deduction will support the industry to speed up its growth. In India road has become the predominant mode of transportation of freight cargo. Estimate of the modal movement of cargo highlights that In India nearly 61% of the cargo is moved by road, 30% by rail and rest by airway, pipelines and inland waterways. This is as compared to a 37% share of road in the USA and 22% in China.

Outsourcing is everywhere. Logistics industry is no exception. Logistics services like transportation, warehousing, cross docking, Inventory management, packaging and freight forwarding all are part of third party logistic services. Companies in India currently outsource an estimated of 52% of logistics. And 3PL industry is estimated to be US$ 1.5bn in FY11. 3PL represents only 1% of logistics cost emphasis its significance in the industry. Future is no doubt lying in outsourcing. As the growth in the 3PL market is expected to be in the range of 25-30% CAGR over FY11-13E. As of now, the 3PL activity is limited to only few industries like automotive, IT hardware, telecom and infrastructure equipment.
The organised 3PL market in India can be categorised into three major segments – public sector, private sector and foreign entrants. Some of the major players in each category are: TVS logistics, DIESL (TATA), Panalpina, TCI, Gati,...

Other Essays Like Logistics Sector in India

Doccument Essay

969 words - 4 pages , capabilities, and technology of its own organization and other organizations to design, build and run comprehensive supply chain solutions." The transport sector in India: Manufacturers do not seem to pay much attention to their transportation needs, relying on the conventional way of calling up truck operators and getting the best rate. Thus, the firms end up paying a lot of money on transportation simply because of poor planning on distribution

Ecommerce Effect on Steel Logistics Essay

3620 words - 15 pages practical to be completely adopted into steel sector as a whole. Customization in the existing logistics process need to be done and it must undergo trail runs before their acceptance into the steel sector logistics process. Reference 1. 2. 3. http

Indian retail industry

566 words - 3 pages be bad for the "kirana dukaans". 3) The Organized retailing sector in India is only 2% and is expected to rise to 40% by the year 2010: There is a huge margin for growth. Companies the organized retail sector can grow immensely, with the people of India also ready for a change. 4) Coming up with developed retail formats and organized retailers in non metropolitan states: Thou the buying power of rural areas may be low at the moment, with the

Jsb Market Research : India Oil Markets, 2013

2491 words - 10 pages . It also provides information relating to the crude oil assets (oil fields, refineries, pipelines and storage terminals) in India. The report compares the investment environment in India with other countries in the region. The profiles of the major companies operating in the crude oil sector in India together with the latest news and deals are also included in the report. Scope Historic and forecast data relating to production, consumption

Classifications of Automobile

4362 words - 18 pages advantage of its huge resources. India with its large young population and abundant skilled labour force can become a major player in the automobile sector across the world. Role of SCM in Automotive Industry According to the Council of Logistics Management Supply Chain Management, “the process of planning, implementing and controlling efficient and cost effective flow of materials, in-process inventory, finished goods and related

E-Commerce in India

5037 words - 21 pages logistics. 3. E-Commerce is expanding into nonmetropolitan India- E-Commerce retailers in India are expanding their offerings to the online population outside metropolitan India and are investing heavily in the infrastructure to support these cities. Online apparel retailer is already seeing demand for its products outside metropolitan India: 50% of its sales are outside India’s 10 biggest cities. To widen their reach, multiple retailers

Solar Energy India

798 words - 4 pages vendor network provides an edge to Mahindra EPC for optimizing costs in structure fabrication.OBJECTIVES OF THE PROJECT: | | | * To study the business landscape in the solar energy sector in India * To study the strategies followed by MAHINDRA EPC in this sector to provide cost effective solutions under existing conditions i.e. high competition and the high capital investment requirements of the projects. * To study the effectiveness of the business model adopted by MAHINDRA EPC to meet the growing energy demand in the country.

Sme Industry

1372 words - 6 pages (Author Speak: Search Magazine) The growing case for group collaboration for SMEs in India R. Narayan, Founder & Chief Executive Officer, Power2sme, examines how group procurement of supplies for manufacturing can jumpstart growth for the SME sector in India. Imagine a scenario where you can easily procure the best price for the raw material you need to manufacture automotive OEM parts or for construction needs or for manufacturing or raw

Retail: Road Ahead

1116 words - 5 pages . Policy Initiatives • 100 per cent FDI is allowed in cash-and-carry wholesale formats • FDI up to 51 per cent under the Government route is allowed in retail trade of 'Single Brand' products Road Ahead According to industry experts, the next phase of growth is expected to come from rural markets. According to a market research report published in June 2008 by RNCOS titled, 'Booming Retail Sector in India', organised retail market in India is

Syllabus of Sales Distribution Management with Detail Explanation About the Theories

776 words - 4 pages Retailing & e-Retailing Market Logistics: Meaning and Scope – Outbound Logistics – Transportation including multi-model system – Warehousing – freights – CFAs – 3 PL and 4 PL providers – reverse logistics – Technology in logistics – recent trends Cases Introduction of New cases in necessary Faculty will be handling eight or more cases Baskin Robbins - Sales Strategy for India Eureka Forbes – The Direct Marketing Pioneer Mary Kay Inc. - The Saleswomen

Logistics in China

3706 words - 15 pages behind more developed nations.  Key problems include inferior equipment and poorly trained workers.  China’s history of state ownership in this sector has left a legacy of poor management and an infrastructure geared toward the movement of bulk commodities.  As a result, the system is poorly equipped to handle perishable or sensitive goods, track shipments or handle containerized shipments over land.   In short, China’s logistics industry faces

Related Papers

Express Logistics Market In India Essay

547 words - 3 pages 04thOctober 2016 – Navi Mumbai, India: Market Report on India present the latest report on “Express Logistics Market in India”, express industry is a premium segment of the logistics industry, providing logistics services for movement of time perceptive shipments. Logistics is about moving materials, information and funds from one business to another business or from a business to the end user. The transportation division accounts for 37% of

It Sector Trends In India Essay

1583 words - 7 pages IT Sector Trends in India The Indian information technology sector has been instrumental in driving the nation's economy onto the rapid growth curve. According to the Nasscom-Deloitte study, the IT/ITES industry's contribution to the country's GDP has increased to a share of 5.2 per cent in 2007, as against 1.2 per cent in 1998. Further, the IT and BPO industries are poised to clock revenues worth US$ 64 billion by the end of

Mnc's Effect On Local Businesses In Retailing Sector (India)

2774 words - 12 pages MNC's Effect on Local Businesses in Retailing Sector (India) Contents Abstract 1 Introduction 2 Literature Review 2 Effect of MNC’s into Indian Retail Market 5 Advantages 5 Disadvantages 7 Hypothesis 8 Conceptual Model 8 Conclusion 10 References 10 Abstract Globalization paved the way for entrepreneurs to expand their wings beyond their respective counties. MNCs exploit the business opportunities in other countries

India Switchgear Market Outlook To 2018 Sustained Demand For Low Voltage Switchgears In Residential And Commercial Sector

1257 words - 6 pages India Switchgear Market Outlook to 2018 - Sustained Demand for Low Voltage Switchgears in Residential and Commercial Sector The report titled ‘India Switchgear Market Outlook to 2018 - Sustained Demand for Low Voltage Switchgears in Residential and Commercial Sector’ presents a comprehensive analysis of the industry aspects including market size by value of switchgears. The report also entails the market share analysis and company