EXPRESS LOGISTICS MARKET
Objective of Research
This report attempts to understand the express logistics industry from the perspective of both, India and Globe. The broad objective of the study is to understand the Players involved in the business of express logistics, the factors which helped the industry grow and other factors affecting the industry.
Methodology used for the study
Secondary data is used for the study. Various websites and portals on the internet were observed and information is extracted for the study.
The objective of the study was to get an in-depth understanding of the express logistics market. The report covers various aspects about the express logistics market like various companies involved in the business of express logistics, organized and unorganized companies, market share, growth rate and also the future trends in the express logistics industry. The findings helped me to understand the various drives which helped the logistics industry to attain success and earn handsome profits.
An Overview : The Logistics Industry
Logistics is the function responsible for all aspects of the movement and storage of materials on their journey from original suppliers through to final customers. Logistics is the time-related positioning of resources, or the strategic management of the total supply-chain. A rule of thumb says that logistics accounts for 10–20% of gross domestic product (GDP) Indian Logistics Industry – Overview
The current size of the Indian Logistics Industry is estimated around $225bn and is expected to reach around $350bn by 2015
Generated employment for 45 million people
The industry is expected to grow annually at the rate of 15- 20 per cent, reaching revenues of approximately $ 385bn by 2015. Highly Unorganized with organized sector responsible only for 6% Market share of organised logistics players is also expected to double to approximately 12 per cent by 2015 As per industry estimates as provided by the Fitch Rating Agency, there is a positive future outlook for the Indian Logistics Industry and it is estimated that the industry will grow at 15-20% over the next few years.
The Logistics industry includes five broad segments – ocean freight, rail freight, air freight, trucking and third party Logistics (3PL) services 70% of the total domestic product is transported through the road network and
15% through the rail network
As per industry estimates as provided by the Fitch Rating Agency, there is a positive future outlook for the Indian Logistics Industry and it is estimated that the industry will grow at 15-20% over the next few years
Several factors helped the growth of logistics industry in India over the last decade that include changing tax system as well as a rapid growth in industries such as automobile, pharmaceuticals, FMCG and retail
Major Organized Players in the Logistics Segment in India
Blue Dart Express Limited
First Flight Couriers
Trends in the Indian Logistics Industry
Third Party Logistics (3PL): 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. Future is no doubt lying in outsourcing. 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, Allcargo, V Trans, Total, VRL and Reliance etc.
Private Participation: The industry is becoming more competent with the entry of global giants like Gazeley Broekmen (Wal-Mart's logistics partner), CH Robinson and Kerry logistics and large...
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