CONTENT SERIAL NO.
1. 2. INTRODUCTION INDUSTRY COMPOSITION 2.1 ROAD TRANSPORT 2.1.1 LOGISTIC COMPANIES ENGAGED IN ROAD TRANSPORT 2.2 RAIL TRANSPORT 2.2.1 LOGISTIC COMPANIES ENGAGED IN RAIL TRANSPORT 2.3 SHIPPING 2.3.1 LOGISTIC COMPANIES ENGAGED IN SHIPPING 2.4 AIR CARGO 2.5 WAREHOUSING 2.5.1 LOGISTIC COMPANIES ENGAGED IN WAREHOUSING 2.6 CONTAINER FREIGHT STATIONS/ INLAND CONTAIN DEPOTS(CFS/ICD) 2.6.1 LOGISTIC COMPANIES ENGAGED IN CFS/ICD 2.7 PORTS 2.8 COLD CHAINS 2.8.1 LOGISTIC COMPANIES ENGAGED IN COLD CHAINS 2.9 AIR CARGO HUBS 2.10 3PL 2.10.1 LOGISTIC COMPANIES ENGAGED IN 3PL 2.11 EXPRESS COURIER 2.11.1 LOGISTIC COMPANIES ENGAGED IN EXPRESS COURIER 3. 4. 5. PE & MERGER AND ACQUISITIONS REASON FOR FOCUSING ON LOGISTICS CONCLUSION
3-10 11-116 13-15 16-27 28-31 32-42 43-48 54 55-60 61-66 67-70 71-73 74-77 78-80 81-85 86-90 91-93 94-100 101-104 105-110 111-116 117-118 119-120 121-122
Logistic Industry Overview
LOGISTICS has always been a central and essential feature of all economic activity. Despite this importance, there is a long history of organizations paying little attention to their logistics. They traditionally concentrated their efforts into manufacturing products and considered the movement and storage of materials as an uninteresting errand that formed part of the overheads of doing business. However, over the years, the status of logistics has continued to improve, primarily due to recognition by the organizations of the following critical factors: Appreciation of high logistics cost and opportunities for major savings. Increasing competition for both users and providers of logistics, who have to continually improve operations to remain competitive New types of operations, which can force changes to logistics – such as just-in-time, total quality management, flexible operations, time compression etc. Need for improved technology for identifying, locating and tracking materials
Indian Logistic Scenario
The Indian logistics structure is witnessing a paradigm shift. The industry is expected to grow at 16% up to 2010. Being driven by rising export and import, government investment on infrastructure and the entry of private players, the industry is undoubtedly on a high growth path. With the market becoming more competitive especially for the manufacturing sector, outsourcing of logistics activities is the preferred option. The Indian logistics industry is currently much disorganized. The major players can be broadly categorized as pure transport providers, transporters providing certain value added services such as warehousing, and completely integrated players providing 3PL services. The major elements of logistics costs for Indian Industries include transportation, warehousing, inventory management and other value added services such as packaging. The figure on the right shows that transportation and inventories account for 35 % and 25 % of logistics cost respectively, indicating their importance in logistics. India's spending on the logistics industry is much higher than the developed economies. The reason for high spending on logistics in India is attributed to poor infrastructure facilities, lack of implementation of IT in logistics and unnecessary check points at the National highways which wastefully increases the transportation costs. The table below shows that India can save up to US $ 7.13 billion each year in the event of a reduction in logistics cost by 1%
Elements of Logistics cost(India)
9% 11% 14% 25% Losses 6% 35% Tranportation Inventories
Fig.1 Source: Cygnus Research (2007) Indian logistics industry is 3% of the global logistics The industry is highly fragmented even though the share of organized players is expected to double by FY15E to 12% India ranks 47 amongst 155 countries on a Logistics Performance Index (LPI) of World Bank. The logistics industry is expected to grow at 15-20% a year to...