Studied the dynamics of Indian Logistics Industry.

1. INDIAN LOGISTICS
By: Anshuman Singh
Salman Shiras
Sayeka Mehjabin
Asha Chauhan

2. INTRODUCTION
 Logistics took way in 1980 with door to door
activities.
 Need of products and services across the globe.
 In 2014, US $ 98.10 Bn with 4.9% growth from last
year.
 It grows around 2 times of GDP.

3. Logistics Industry Structure
Logistics Industry Structure
Indian Logistics
Market
Container
Logistics
Liquid
Logistics
Express
logistics
Road
Freight
Inland Container
Depot(ICD) and
Container
Freight Station
Container
Haulage
Multimodal
Transport
Operator(MTO)
 3PL (Third Party Logistics) services can be a combination of all
these activities provided by the logistics supplier

4. NATURE OF INDUSTRY
 Cyclical
 Dependent upon spending from different business.
 Grows as economy grows.

6. MARKET SHARE
Source: Frost & Sullivan Research

7. Key Players in Logistic Industry

8. END USERS
 Business
 Government
 E-commerce Companies
 Individual Customers
 Farmers

9. INDIAN LOGISTICS INDUSTRY
PORTER’S FIVE FORCES MODEL
Forces
Impacting
Logistics
Industry
threat
of Substitutes
The industry is highly
customer oriented with
multiple vendor options
available to customers
bargaining
power of Suppliers
Government influence on
fuel prices makes it
difficult for players to
predict, control and pass
through fuel costs to
customers
rivalry
among competitors
Lack of differentiationin
services leads to
commoditization and
further priceerosion
bargaining
power of consumers
A few large users of the industry and
companies (e.g. the automobile
industry ) are able tosignificantly
squeeze transporters
threat
of new entrants
No entry barrier in terms of
requirement for licensing
needs and industry is
vulnerable to easy scale –up
and intensecompetition

10. PEST ANALYSIS
Political
SEZ
National Highways
Infrastructure Spending
Economic
VAT
GST
GDP Growth
Import and Exports
Technological
Inventory
Management
Bar Code System
Radio Frequency
Web Enabled System
Social
E-Waste Solution
Innovation

12. IMPACT OF GST
 Good and Service Tax (GST) simplified and uniform
tax system.
 Easy Inter-State Movement.
 Optimization of cost.
Challenges:
 High Investment.
 Realignment of Routes and Volumes.

13. LAND ACQUISITION IMPACT
 Investment in Rural areas.
 Highways, Corridor and etc.
 New Projects can take place.
 No Delay.

14. INDIAN LOGISTICS INDUSTRY
GROWTH DRIVERS
Growth
Drivers
Streamliningof
Indirect Tax
Structure
Investment in
Transportation
Infrastructure
Infusion of
Qualified Work
Force
Globalization of
Manufacturing
Sectors
Recognition of
logistics
management as a
strategic tool
Increased
Demand of 3 PL
services

15. CHALLENGES
Source: KPMG, McKinsey, MOSL

16. SUPPLIERS
 Fuel
 Containers
 Warehouses
 Package
 Trucks
 Ports
Apm Maersk, Mediterranean Shg Co, Cma cgm
group, Evergreen Line, Hapag Lloyd, etc.

17. EXPECTED GROWTH FACTORS
 CAGR of 6-7% till 2020 reaching revenues US
$150-$160 Bn.
 E-tailing expected to grow at 60% for next few
years which logistics contribution is around 10%.
 Infrastructure spending.
 GST and Land Acquisition.
 100% FDI.

18. REVENUE FORECAST
Source: Frost & Sullivan Research

19. BROKERAGE REPORTS
1. Changing demographics
• 60 % of Indian population to be in 20-25 clusters by 2030.
2. Evolving trade requirements
• Growth in domestic manufacturing and retail sector
• Make in India
• Booming e-commerce sector
• Growth of niche industries – cold chain warehousing
• Integration of IT and technology
3. Increasingly skewed modal mix
• Lack of infrastructure
• Misuse of modes of transportation
• Overutilization of roadways
• Underutilization of waterways and railways
• Need for world class facilities like Logistics parks, Free trade and
warehousing zones, Containerization, Multi modal freight corridors,
Hub-and-spoke model of freight movement etc.

20. 4. Developments in each mode of transports
 Air
 Emergence of new cargo centers – tier I and tier II cities
 Air freight stations
 Ports
 Mega ports
 Development of non major ports
 Containerization
 Rail
 Direct freight corridors
 Container train operators
 Assembly and light manufacturing services
 Rail side warehousing
 Warehousing
 GST

21. THE FUTURE
 Logistics Market in India is expected to be worth US$ 301.89 billion by 2020
 India spends around 14.4% of its GDP on logistics and transportation as compared
to less than 8% spent by the other developing countries.
 Indian logistics market is expected to grow at a CAGR of 12.17% by 2020 driven
by the growth in the manufacturing, retail, FMCG and e-commerce sectors.
 3PL logistics market in India is expected to be worth US$ 301.89 billion by 2020.
 Indian freight transport market is expected to grow at a CAGR of 13.35% by 2020.
 The road freight movement is expected to increase at a CAGR of 15%.
 The rail freight movement will grow at a rate of around 10% CAGR over the next 5
years.
 Indian sea freight market will grow at a CAGR of 12% in the next 5 years.

22.  Warehouse market in India is expected to grow at a CAGR of 10%.
 Indian cold storage market is expected to grow at a CAGR of 16.09% by
2020 driven by the growth in the organized retail, Indian fast food market,
food processing industry and e-commerce sectors.
 Cold storage market in India is expected to be worth US$ 8.57 billion by
2020.
 Goods and services Act
 Increasing trade with South east Asia & Asia.

23. REFERENCE LIST
 Mehatha, A et al (n.d.) “A Macro-environment
analysis of reverse logistics practices in India”.
 Frost & Sullivan (2015) “Mega Trend in Indian
Logistics Sector for 2015-16”, CII.
 Borawake, H (2015) “Transformational Times”,
Motilal Oswal.
 Dinodia Capital Advisors (2012) “Indian Logistics
Industry”.
 KPMG (2013) “Logistics Game Changer-
Transforming Logistics”, CII.
 Religare (2012) “Indian Logistics”.