Scope
For Logistics companies in
the indian Market

Despite problems, The Indian logistics industry is growing at 30-40% vis-à-vis the average world logistics industry growth of 10%. Since the organized sector accounts for merely 1% of the annual logistics cost, there is immense potential for growth of the sector.

1. Many large Indian corporate such as Tata, Reliance Industries, Mahindra & Mahindra, Future Group, TVS Sundram, Kingfisher and Deccan 360 Logistics Co have been attracted by the potential of this sector and have established 3PL divisions.
   
2. Large express cargo and courier companies such as Transport Corporation of India (TCI), Gati and Blue Dart have also started logistics operations. These companies enjoy the advantage of already having a large asset base and an all-India distribution network.
   
3. Indian shippers are gradually becoming more aware of the benefits of logistics outsourcing. They are now realizing that customer service and delivery performance are equally important as cost to remain competitive in this global economy.
   
4. The Indian economy is growing at over 9% for the last couple of years (compared to the world GDP growth rate of 3%), which implies more outputs and more demand for specialized logistics services.
   
5. The Indian government has focused on infrastructure development. Examples include the golden quadrilateral project, East-West & North-South corridors connecting four major metros.
   
6. In India, 100% FDI is allowed in logistics whereas in China foreign investment not allowed in domestic logistics. Almost all large Global Logistics & Shipping companies have their presence in India, mainly involved in freight forwarding. For domestic transportation and warehousing, they have tie-ups with Indian companies. As the Indian logistics scenario looks promising, these MNCs are expected to play a bigger role, probably forming wholly-owned subsidiaries or taking the acquisition route.