How is India Logistics and Warehousing Market Positioned?
Overview: India has been ranked at 4th position in the world in railway freight traffic after China, US and Russia. Under the land freight corridors, ~% of domestic freight volume carried through road; high compared to ~% in developed countries. India Logistics Market has witnessed an average CAGR during FY14-FY19 due to favorable policy reforms from the government, continued investment in infrastructure by both the government and the private sector; influx of foreign players in the market in recent years, increasing consolidation, and investing in innovative technologies has stimulated the growth in the market.
Development strategies and infrastructure enhancements are only being done with help of Public Private Partnerships by the Companies.
Market: The logistics market has seen significant growth in the last few years, recording a CAGR of ~% during FY14-FY19 primarily due to increasing infrastructure investment, e commerce and cold chain facilities in India. The Logistic sector performance is still not very good in comparison to other South Asian countries such as Indonesia and Thailand, Vietnam but has improved in the past 5 years, currently holding a LPI Score of 3.18.
The freight forwarding sector is the leading segment towards the revenues of the logistics industry, followed by warehousing and courier & parcel activities. The other sectors include value added services, e-commerce deliveries and 3PL market.
India Logistics and Warehousing Market
By Service Mix: Freight forwarding segment has dominated the logistics industry of India and has grown at a five-year CAGR of ~% during the period FY14-FY19. This is primarily due to increased highway construction per day, increasing foreign trade with Countries such as EU, China and SEA Countries. The demand of cold storages is increasing in many states such as UP, Maharashtra, Gujarat, Madhya Pradesh, Haryana and others accounting for ~ % of total capacity available in India Primarily due to rising demand of meat, seafood and other perishable products and also due to the additional Government Subsidy Provided on Cold chain Solutions. Warehousing and CEP sector is even expected to boost by e commerce companies opening their fulfillment centers across India. VAS is being popular with all companies providing VAS as part of their service portfolio to give all possible services to their clients under one roof.
India Road Freight Market Size
Road freight market is expected to reach INR ~ Billion in 2019 from INR ~ Billion in 2014 with a CAGR of ~% during the period 2014-2019P. This has been due to the Improvements in the Road connectivity and projects such as Bhratamala Pariyojana and the Sagarmala projects and the Eastern and Western Dedicated Freight Corridors, Improving trade relations with many countries such as Europe, US, and Neighboring Countries, revision in GST, Axle norms and scrappage policy by Government. Very high Road freight movements can be seen near Mumbai and Chennai Ports with Western Coast handling ~% of total Volume.
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India Road Freight Market Segmentation
By Mode of Service: India freight forwarding market is dominated by Road freight with share of ~% in terms of revenue followed by Rail freight.
By Road Freight
The road freight is done domestically and internationally with its neighboring countries. The number of trucks is increasing at ~ rate between 2014-2019P. The average freight rate is ~ per ton per km.
By FTL/LTL: Majority of the Volume transported by road is done on FTL basis by Revenue and Volume with Average prices charged in case of LTL is higher than FTL basis.
Cost Component Analysis
Out of the total operating cost, ~ % is held by Fuel, ~% is held by salary and ~% by EMI, ~% margin by trucking companies.
Key Segments Covered:-
Freight Forwarding Market
By Mode of Transportation
Road Freight (Fleets, Volume, FTK, Price/ton/km and Revenue)
Sea Freight (Volume, Price/ton/km, Revenue and Inland Coastal Shipping Price/ton/km)
Air Freight (Volume, Price/ton/km and Revenue)
By Road transportation
Less than Truck load (Revenue)
Full truck load (Revenue)
By Type of Fleets (Number of Fleets)
Less Goods Carrier Vehicles
High Goods Carrier Vehicles
Companies Covered:-
GATI-KWE
VRL Logistics
TCI
OM Logistics
DGFC
Varuna
Express Logistics
Aggarwal Packers and Movers
NTC Logistics
FSC
Associated Road Carriers
KerryIndev Logistics
Coastal Roadways
Stellar Value Chain
Sical Logistics
VTrans
CEVA
Anand Roadlines
Southern Cargo
Andhra Bangalore Roadways
DHL
CTC Freight Carriers
Mahindra Logistics
ALL Cargo
TVS
Key Target Audience:-
Freight Forwarding Companies
E Commerce Logistics Companies
3PL Companies
Consultancy Companies
Logistics/Warehousing Companies
Time Period Captured in the Report:-
Historical Period – FY14-FY19
Forecast Period – FY20-FY24
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