The Indian logistics industry is expected to worth US$ 125 Billion by 2010 on account of development of logistics parks and 3PL services.
The Associated Chambers of Commerce and Industry of India (Assocham) has recently said that the Indian logistics industry is set to touch a mark of US$ 125 Billion by 2010, up nearly 17% from the present level, as reported by
Business Standard. The industry is projected to generate annual revenue of Rs 5,96,114 Crore by 2013-14.
Industry pundits strongly believe that logistic sector will be benefited from the introduction and development of logistic parks across the country. In fact, the Indian Railway Ministry has taken a step forward in this direction by announcing that it will negotiate with state governments for building up of Multi-modal Logistics Parks (MMLPs) together with freight corridors. These MMLPs will contain facilities like container depots, warehouses, rail sidings with sheds and building for logistics operations.
With rising popularity of outsourcing logistics to third party service providers (also known as 3PL) in business as well as household segments, the Indian logistics industry seems to take rapid strides forward and register robust growth in coming years. Now, an increasing number of domestic companies are adopting 3PL services in view of advantages they offer such as better management of supply chain processes. 3PL providers have proven their virtue over the conventional systems by significantly reducing logistics costs and better handling of complicated tasks.
RNCOS, a leading marketing research firm, has stated in its research report “
3rd Party Logistics Market in India” that the trend of 3PL services is gradually becoming popular in India and several industries have shown great confidence on them. For instance – the Indian retail sector spent around US$ 109 Million on 3PL services in 2008 and is projected to cross US$ 400 Million by the end 2012. At present, automobile (including auto components) and IT hardware industries primarily use 3PL services in India.
Moreover, the automobile and auto components industry is looking for more innovative supply chain and logistics practices to offset cost, improve service levels and product diversity amidst growing global competition. The Indian IT hardware industry is primarily dominated by foreign players who extensively use 3PL services.
According to a Research Analyst at
RNCOS, “The Indian logistics industry is poised to grow robustly in coming year on the back of third party logistics services providers and the development of logistics parks. To make industry more competitive, logistics will have to shift their focus on reducing cycle times and add more value to customers.”
