2. •Lack of sustained investment in planned infrastructure like
warehouses, transport centres, ICDs etc
• Cold Chain infrastructure is very sporadic. The concept of
“Integrated Cold Chain” is non existent
• Major investments on these infrastructures have come from
Government agencies like CWC, SWC, CONCOR etc
• Current private sector initiatives are small and sporadic.
• Private sector warehousing are of poor quality , small, fragmented
and does not meet infrastructure standards
• No quality standards or benchmarks are followed in infrastructure
creation
Current Status of Logistics Infrastructure
3. Key Demand Drivers of Logistics
• Need for Exim based logistics infrastructure
– Number of ICDs needed would be doubled in next 5 to 10 years
– Critical need for Free Trade Warehousing Zones (FTWZ)
• Urgent need for air cargo processing space, in light of cargo capacity enhancement
at airports and arrival of wide bodied jets capable of carrying substantial cargo at an
economical costs. Current capacity is 50000 sq.m. and the total processing space
required is 200000 sq.m.
• Urgent need to create modern agro warehouses. This would be critical for sustaining
for sustaining agriculture. As per Planning Commission, agro warehousing needed is
35 mn MT in next 5 to 10 years
• At present organized retail accounts for 10 percent of the total; by 2015 this share
reach 20 percent. This would require creation of huge backend infrastructure for this
sector
5. WAREHOUSING
• As per planning commission & industry estimates:
• Total existing warehousing capacity-80 Mn MT
• Required additional warehousing capacity-35 Mn MT (in next 5-10 years)
• Business opportunity: Creating warehouse infrastructure with
warehousing partners of commodity exchange
• Strategy:
– Identification of locations
– Land verification
– Formation of an SPV with a warehousing company of exchange
– Creation of infrastructure
Business Opportunity In Logistics Sector
7. Land of Opportunities
Currently India ranks only 17th
in terms of importing world
products and consuming just
over 2% of globally produced
merchandise but it is growing
at 35%.
It has enormous potential;
consumption is expected to grow
four-fold in real terms from the
present US $378 billion
to US $1.56 trillion by 2025.
Growing Indian economy, increase in outsourcing of logistics services and major
investment by public and private sector in transport and other infrastructures make
logistics a very attractive sector for large companies to expand business.
India is projected to have an additional 47 million working population, with an average
age of 29 which will enable India to become a manufacturing hub of the world.
9. Ground Zero…
a) To carry out Demand Assessment studies
for assessing likely demand in the
proposed ‘Logistics Park’;
b) To firm up project scooping and
components
c) To prepare a Techno-Economic Feasibility
Report including the conceptual
Master Plan, Cost Estimation and Financial
Viability for the ‘Logistics Park’ that can be
used by the potential developers of the Park
for submitting their bids.
10. Course Ahead…
The proposed warehousing and logistic proposal are split under two sub head
a. Pre-commencement.
b. Post commencement
Work under pre-commencement activities shall include :-
1. Preparation of the project report .
2. Preparation of the legal framework in which the proposed activity will work.
3. Liason with the bankers if bank finance is sought.
4. Statutory certification
5. Consulting on any other issues.
6. Maintainance of the project account.
Work under post commencement activities shall include :-
1. Generation of the documents for subsidy if exists.
2. Manitainance of books of accounts.
3. Any other issue which have direct finance relevance.
11. In case of any query pls revert to
Mr Kamlesh Kumar – 8889122522
Mr Mayank Bajpai - 8889122422
THANK-YOU
