0% found this document useful (0 votes)
98 views14 pages

A. B. C. D. E.: IIA Report Logistics Industry

The logistics industry provides essential services like warehousing, inventory control, material handling, and shipping. It uses advanced technologies like IoT, blockchain, AI, and cloud computing. The industry has many suppliers and consumers, including manufacturers, retailers, individuals, and transportation providers. It offers services to various industries and government departments. The competitive landscape includes major players like Aegis Logistics, Allcargo Logistics, Apollo LogiSolutions, and Blue Dart Express that provide integrated logistics solutions across India and globally using vast networks and reliable technologies.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
98 views14 pages

A. B. C. D. E.: IIA Report Logistics Industry

The logistics industry provides essential services like warehousing, inventory control, material handling, and shipping. It uses advanced technologies like IoT, blockchain, AI, and cloud computing. The industry has many suppliers and consumers, including manufacturers, retailers, individuals, and transportation providers. It offers services to various industries and government departments. The competitive landscape includes major players like Aegis Logistics, Allcargo Logistics, Apollo LogiSolutions, and Blue Dart Express that provide integrated logistics solutions across India and globally using vast networks and reliable technologies.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 14

IIA Report

LOGISTICS INDUSTRY

Section 1: Industry Introduction


We are choosing logistics and supply chain as it’ one of the most important field in today’s world and even more
so in the covid era where people are hesitant to go out of their homes and are totally dependent on logistics firms
to provide them with goods and services. Some of the benefits it’s providing to the industries are –
a. Higher efficiency – Supply chain and logistics helps in improving the decision-making capabilities and
enhancing the efficiency of firms. Higher efficiency leads to low cost and reducing wastages.
b. It helps in boosting customer service – Supply chain and logistics helps in boosting the reputation of the
company and also helps in attracting new customers
c. It helps in reducing cost -
d. Improve the financial position of company
e. Improve quality of work
Characteristics of logistics industry –
a. Visibility
b. Optimization
c. Having the lowest cost possible
d. Timeliness
e. Consistency
Primary services of logistics –
a. Warehousing
b. Inventory Control
c. Material Handling
d. Logistical Packaging
e. Shipping
f. Order Processing
g. Information Flow
The technology that is primarily used by in the industry –
a. Internet of things
b. Block chain
c. Artificial intelligence
d. Machine learning
e. Robot and automation
f. 3D printing
g. Cloud computing
h. Advanced supply chain management software (SAP, Oracle etc…)

The key suppliers to this industry –


a. Manufacturers
b. Warehouse distribution centres
c. Retailers
d. Individuals
e. Transportation providers
f. Equipment providers
The key human resources needed by this industry are –
a. Administrative
b. Planning
c. Control functions
d. Legal compliance
e. Labour force

Section 2: Consumer Profiling


Logistic industry has a wide range of consumers it touches all parts of the business. Now a days we are technology
extensive economy. Logistics play a major role almost in every business directly or indirectly. The industry has a
consumer from local vendor to big industries and governments to household.
Big industries- furniture industries, automobile industries, telecom industries and many more. They all transport
their goods and machineries through the logistic industry, also small local vendor takes logistics services to ensure
his product safely reached to the customer. Various government departments use the logistics to provide services
to the needy people in different parts of a country. For example, health care equipment’s. Government ensures the
tribal manufacturing product should reach to the customer.
Buying process
It is a highly competitive industry customer wants his product reaches to consumer safely efficiently and at
minimum cost.
Reach of the company- process start with the reach of the logistic company if the company have vast reach in that
country customer will considered as a benefit.
Safety and efficiency- safety and efficiency of goods is required because consumer wants his goods reach to the
customer safely and efficiently. If there is a damage of a goods while transporting. It also affects the company’s
reputation.
This factor consumer considered when he buys services.
Negotiations- cost play a major role for customer and it is a deciding factor in negotiations. Minimum cost and
maximum speed customer want. Considering above all factor’s negotiations happen and with decided price
services will be delivered.
End consumer-end consumer could be household, big businesses, manufacturing firms, government, hospitals,
small retailers, individuals, e commerce companies etc.
Intermediaries-mainly there are four intermediaries in this industry trader, distributor, wholesaler importer and
broker.
Needs and wants-customer wants timely delivery of product, product should be handled with care, highly updated
technology it should tracking and tracing of order and vast service reachability.
Market segmentation-we can segmentation of market in various parameters such as transportation, end user,
region, industries etc.
Transportation-railways, airways, roadways and waterways
End-users- manufacturer, aerospace, government, banking financial services, retailer, media and entertainment and
individuals.
On the basis of region-North America, Europe, Asia, Africa. It could be in country also for example North India,
South India, and northeast India etc.
On the basis of industry-automotive, pharmaceutical, FMCG, retailer, consulting.
These are the major type of segmentation of a logistic industry.
On the basis of demographic social and cultural effect on industry-in developing country like India logistic and
supply chain has been becoming more prominent as the new generation come to lead the charge.as the young
population is really handy with the new technology and there is definite culture shift as most of the young
population are shopping online compared to the traditional shopping methods

Section 3: Competitive Landscape


There are n numbers of competitors and some of the major competitors are –

a. Aegis Logistics Ltd - was established in 1956. The company is committed to provide supply chain and
logistics services too gas, chemical and oil industry. Company distributes LPG and provides logistics &
terminal ling logistics services in the gas, chemical and oil sectors. Company also manufactures and
distributes Kerosene oil and oleochemicals and provides chemical storing facilities. Company has storing
facilities in Mumbai Haldia, Pipavav, Kochi, Kandla and Mangalore. Its segment includes Gas Terminal
Division and Liquid Terminal Division. Liquid Terminal Division makes it a place to store and eliminate
oil and chemical products. Gas Terminal Division is concerned with the storage, imports and distribution of
the petroleum products like propane and LPG. The LPG market is with cylinders, used for commercial,
domestic, and industrial applications.

b. Allcargo Logistics Ltd. - Allcargo Logistics Ltd was established in 1993 and is based in Mumbai and is
one of top 10 Logistics companies in Nation. Provides multimodal transportation services. The leading
logistics company is part of the Avvashya Group. It offers a wide variety of transportation services
including less than container load, full container load and non-vessel operating common carrier. With this,
company offers third-party logistics, container freight stations all over India, inland container depots,
warehousing, ship owning and chartering. Allcargo Logistics operates in more than 160 countries from
more than 300 offices.

c. Apollo LogiSolutions - was founded in 2009 and has headquarter in Gurgaon, Haryana. The company is a
provider of Integrated Logistics solutions and 90% owned by Apollo International Ltd. Company offers
end-to-end integrated logistics services through its global network spread across the globe. Provides dry
ports, customs brokerage, freight forwarding, port clearance, customs handling, 3PL, bonded warehouses,
first mile and last-mile connectivity. Apollo LogiSolutions has a global network of more than 100 countries
and has a visible presence in the integrated logistics space with special focus of the EXIM asset movement.

d. Blue Dart Express Limited - is an Indian logistics company and has headquarter in Mumbai, Maharashtra
and founded in 1983 by Mr. Tushar Jani. Blue Dart Express has access to 35,000+ pin codes in the country
and 220+ countries worldwide. They offer multiple-payment packages that combine services together.
These services include COD delivery, automated proof of delivery, weather resistant for the orders,
fast/express delivery, and timely delivery.

e. The Container Corporation - of India was established in 1988 with its headquarters in New Delhi, India.
Container Corporation of India works to transport containers (both rail and road), and handling of the
containers. The company also operates a range of logistics facilities that include dry ports, private freight
terminals and container freight stations. Its categories are EXIM and Domestic. Both the EXIM and
domestic segments of company are involved in warehousing activities handling and transportation. Its
international services include road services, train services, air cargo services, blocking bookings and reefer
services on round trip. Its domestics services include volume discount scheme, train services, terminal
handling charges and door delivery/pickups.
Section 4: Industry Indicators
Companies within the supply chain and logistics are structuring themselves on the following basis –
a. Vast network – Companies has latest and advanced systems that offer excellent, consistent and premium
quality service connecting nationally and internationally.
b. Vast Services – There are entire range of services that are on offer from carrying a small shipment to a
large shipment.
c. Reliable Technology – Having vast range of services and networks, process has to be done with full
efficiency that should help in cost saving and adding value for the customer.
d. Committed Workforce – Companies hires the best set of teams and individuals from all over India who
believes in themselves and in the wellbeing of the company which helps in taking the company to new
heights.

1. Yes, there is consolidation in the logistics industry. Consolidation in the logistic industry basically means that
the companies shipping several different small components ships it together in a large container which helps
both the carrier and the shipper as there is a fast delivery of goods and also the cost is reduced.

2. There have been some major mergers in the industry as well one of which is Bluedart+DHL in 2002.The firms
in the industry are expanding as the supply chain and logistics is growing by a tenfold. The 3PL concept in
India is a recent past earlier manufacturing companies used to own their own their logistics and
transportations, but these services are being outsourced. These companies are providing full-fledged solution -
from transportation to tracking of the goods, etc. Prior to that companies used to for basic services outsourced-
transportation and warehousing. With time and demand, the firms started to provide integrated services.
Nowadays, the companies are providing the 4PL solutions which includes managing an entire supply chain
system.

Some of the benefits of consolidation in logistics industry are –


a. Cost Savings
b. Damaging of the product is reduced
c. Transit is improved
d. Dock congestion is reduced

3. In the today’s era, the logistics and supply chain companies are facing a huge change in the digitalization as
the technology is evolving day by day which helps in evolving the customer expectations also. Increasing
technology helps in processing the job with greater efficiency and with higher productivity. Expansion or
downsizing of the industry in the future depends on several factors such as the collaborative working which
helps in growth of the company. As new competitors and entrants enters into the market. Collaboration will
provide a platform for development for everyone. Also, the scale of the company plays a very important role in
deciding the expansion or downsizing of the company. Market leader basically competes for the dominant
leading companies and for the small companies, it’s better to consolidate with the big firms for acquiring their
goals and objectives. It is a fact that this pandemic has brought huge changes in the logistics industries due to
which almost all the corporates and companies are affected. As the pandemic is slowing down market is
coming back to its original position. As per the current reports, the Indian logistics market is at 215 billion
US$ having market leading firms such as Container Corporation of India Ltd. (CONCOR), Blue dart logistics
company, Gati Logistics, Ekart Logistics, DHL logistics, FEDEX Logistics.

Container Corporation of India Ltd. (CONCOR) is a government-based company undertaken by the Indian
Railways and is the leading logistic firm having a market capital of 40,481 crores.
Followed by CONCOR is the Blue Dart, which is the leading private logistic company in India having a 36%
market and having a market value of almost 13,313 Cores as per 2020 data.
List of top 10 Logistics Companies –

COMPANY
MARKET CAP PROFITABILIT
S.NO COMPANY NAME TURNOVER
(Crores) Y (Crores)
(FY20) Crores
Container Corporation of
1 ₹40,481 ₹366
India Ltd. ₹6,539

2 Blue Dart Express Ltd ₹13,313 ₹3,175 131.05

3 Aegis Logistics Ltd ₹11,232 ₹7,183 ₹133

4 TCI Express Ltd. ₹6,329 ₹1,036.33 ₹ 89.08

5 Mahindra Logistics Ltd. ₹4,071


3471 ₹55

6 Allcargo Logistics Ltd. ₹3,870


7,346 ₹234

7 VRL Logistics Ltd. ₹2,626


₹ 2128.85  ₹ 90.1149

8 Gateway Distriparks Ltd. ₹3,482 ₹1,292 (₹103)


Transport Corporation of
9 ₹3,119
India Ltd.  ₹ 2717 ₹118

10 Gati Ltd. ₹1,997 ₹1,711 58.08

Coming to the contribution of logistics sector in the GDP of India, logistics sector almost contributes 14.4 %
which is much higher than the developed countries.
The logistics industry in India is growing at a compound annual growth rate (CAGR) of 10% and it’s estimated to
show a growth of 10.5 % between 2021 and 2025 as the growth of the logistics and supply chain industries mostly
depends on the ecommerce companies and other sectors and ecommerce are rising and increasing their market
capital day by day.

The Government of India is aiming to promote Foreign Direct Investment in Logistics Industries. Investment can
be carried out in two ways:

Automatic Route - Approval is not required from the RBI (Reserve Bank of India) or the Government of India.
The automatic route is aimed for those sectors and levels of investment that are less
restricted.
a.

Government Route - Under the approval route or government route, the foreign investor
or the Indian company should obtain prior approval of the Government of India
agencies or bodies specified.

Proposals for foreign investment under approval route as laid down in the FDI policy
are considered by either Foreign Investment Promotion Board (FIPB) or Cabinet
Committee on Economic Affairs or Cabinet Committee on Securities.

b.

The Logistics Sector has granted infrastructure status in 2017. The infrastructure status basically permits the
Logistics Sector to avail the following benefits -

a. Infrastructure lending at easier terms with enhanced limits.


b. Access to larger amounts of funds as External Commercial Borrowings (ECB).
c. Access to longer tenor funds from insurance companies and pension funds.

The Indian logistics sector currently has a value of $160 Bn. With the sector expected to become worth $215 Bn in
the next two years. India’s rank has gone up from 54 in 2014 to 44 in 2018 issued in the World Bank’s Logistics
Performance Index (LPI) measured in the terms of overall logistics performance. The logistics industry is a
prominent player in the economic market and provides better initiatives to improve its infrastructure by further
reducing costs and increasing efficiency. This will help in contributing to help India meet global standards.

Section:5 Technological intervention in Logistics Industry

The era of technological advancement is lifting the industries off their feet. It is benefiting every industry and
transforming it at an unmatched rate. The unfolding of high-performance technology has been creating strong ups
and downs even in the logistics industry in India. Parallelly, it has reduced the drag in logistics, also it is making it
a more automated process.
The logistics industry in India is a major contributor in country’s functioning, the economy and the market would
come to a stand-still without it.
Blockchain-This technological advancement provides a single source of true information after integrating the data
from various participants in the chain. Monitoring of suppliers and carriers using blockchain provides trustworthy
information. Since every participant is the viewer there are no chances of information being removed without
detection. This eliminates the risk of data being hacked as the hacker needs to enter into thousands of computers
which is impossible.
Every company which is a part of transaction can validate data. In short, it’s an open ledger of transactions which
is distributed among hundreds and thousands pf computers which are a part of the network.
Augmented and artificial intelligence- The logistics sector has been integrating AI solutions like route planning,
intelligent transportation, and demand planning in operations, but this only marks the beginning. AI has already
made a huge difference in the logistics industry be it warehouse automated picking systems, last-mile delivery
robots and sustainability solutions and predictive optimization software. Shippers, consumers, carriers, and
suppliers can all expect to gain from these logistics technological innovations continuing in future.

Augmented intelligence integrates human intelligence with AI processes. For example, in case of logistics,
Augmented Intelligence can be used by combining inputs like human planners (responsibility, experience,
customer service, common sense, flexibility etc.) with AI technology which can be allocated to perform repetitive
tasks. Logistics companies can be expected to implement more augmented solutions, which ultimately allow
logistics professionals to do their job more quickly while reducing mistakes and creating cost savings.
Warehouse Automation- Automation of warehouse increases speed, efficiency, and productivity by minimising
human interference. Place and pick technologies like automated guided vehicles (AGVs), automated storage and
robotic picking reduce error rates and enhances warehouse productivity. To maintain the operational logistics
costs, warehouse need a mix of efficient automation technologies.

 Automated Guided Vehicles- These help in the automation of movement of goods. AGVs assists human
labour for addressing challenges relating to processing high-volume of goods. An Indian stat-up named
Adverb Technologies is working on Dynamo, an automated guided vehicle for transportation of loads in
warehouse. Dynamo can execute picking operations in warehouse with very less or no human intervention.
 Automated Storage & Retrieval System- ASRS assists in the management of product and material storage
in automated warehouses and improves floor space utilization and does not require manual labour to
operate, thus reducing the overall operational cost and increasing safety The ASRS named Sky-pod system
is currently in use which helps in optimizing storage space by implementing a vertical storage method so as
to increase the height in warehouses by nearly 10 meters.
Radio Frequency Identification- This technology stores and retrieves data through radio waves. An RFID tag has
a unique id that matches with the inventory database records. Electromagnetic waves are used to identify labels
which are attached to the items and store data for speedy operations.

It basically has two components: -

RFID Tag- includes a transmitter and a receiver which works smoothly with an antenna and a integrated circuit.
The integrated circuit helps in data processing and storage and the antenna performs the job of signal reception and
transmission.

RFID reader – includes an interrogator which transfers the encrypted signals that activates the RFID tags. The
RFID readers are equipped in warehouse at its entry and exit points which records the tag and revise the data
which is stored in warehouse’s computer system.

Section 6: Government and Legal Intervention


The logistics division within the Department of Commerce was created after the amendment to the second
schedule of the Government of India (Allocation of Business) Rules, 1961, on 7th July 2017, that allocated the
task of “Integrated development of Logistics sector” to the Department of Commerce. Headed by a Special
Secretary to the Government of India.
The vision of the logistic policy is driving the economic growth and business competitiveness of India via a
seamless, integrated, reliable efficient, sustainable, green, and cost-effective network of logistics leveraging best
technology, skilled manpower, and processes.
The aim of the policy is to bring down the logistics cost in GDP from 13-14% to 9-10 %. The global average
logistics cost is 8%.
The initiative and goals of the policy are as follows:
1. Digitization: Time efficiency, real time tracking, procedural compliances through E-tolling, electronic
documentation, digital verification
2. E-marketplace: For MSME, forming digital platform for transparent price and removing intermediaries
resulting direct access to the customers. This would help MSME in increasing the consumer base.
3. Data Analytics Centre: Creation of an online portal to collect then collate and prevent logistics data in
product value chain in the nation. This would help in making the investment decisions to be backed by the
data in line with the supply chain trend.
4. E-commerce logistics: There would be emphasis on the 3PL and E-commerce sectors for the first and the
last mile connectivity by making strong the infrastructure, transportation etc. This would help in expand in
Tier II and Tier III cities. This would be time efficient and will bring efficiency in the cargo movement.
5. Comprehensive Implementation plan: Formation of the dedicated logistics wing under the Ministry,
integrated Action plan and development plan with various ministries and governments. This would help in
consolidation of the sector and would help in increasing the efficiency of the logistics with minimizing the
transit losses.
6. Push to development of industry: The GOI has adopted best international practices and formed trade centre
facilitation leading to logistics excellence and removal of the bottlenecks from overall logistics chain.
There is a need to develop the facilities to handle the partial or full automation and robotic technology.
7. Warehousing focus: Promotion the standardised warehousing space with the latest modern facilities &
services. This will increase the opportunity to open up the storages like cold storage, agri-cargo, etc.

Regulation by government to logistics Industry


The laws which are majorly applicable to logistics industry are:

1. Multimodal Transportation of Goods Act


It says that an operator in ownership of transport system where the carriage of the goods via 2 or more
made of transportation takes place. 3PL logistics today provides many services today including
transportation, end to end delivery, warehousing, etc for national and international. The operator of
multimodal transport (Multimodal transport operator is solely responsible for the contract of transportation.
This act was formed in 1993 and later amended in 2000 was introduced to act as a uniform system
balancing interest of cargo owners and operators. Act contains provisions of registering company or owner
as Multi Modal Transport operator.

2. Carriage of Goods

A. Carriage of Goods by land


The MORTH (Ministry of Road Transport and Highways) In consultation with different Central
Departments/Ministries, Union n territory Administrations, State governments, different organisations
and individuals with the domain knowledge, policies, etc entrusts the task to formulate and
administration to increasing the efficacy of road transportation system in the nation.
 Carriage of Road Act, 2007
The Act provides regulation of common carriers of common carrier. The act says that Certificate of
the registration is mandatory for any person to engage in the common carrier business.
 The Railway Act, 1989
It contains some provisions like:
a) Every administration of railway must maintain the rate books and other required documentation
b) The consigner must write a forwarding note and administration should issue receipt.
c) The Act includes the details regarding the liability of railway administration in case of loss,
damage, etc.

B. Carriage of Goods by Sea


 Indian Bills of landing, 1856.
It emphasises negotiable and the other characteristics of the bill od landing.
 Carriage of Goods by Sea Act, 1925
It emphasises on rules of regulating the rights and the liabilities of parties to a particulate contact.
 Merchant Shipping Act
It contains the rules regarding the registration of The Ships, mortgages or transfer, etc.

C. Carriage of Goods by Air Act,1972


India currently ratified two instruments with regards to regulations concerning the international
transportation. In addition to that, by air, the Warsaw Convention 1929, and Warsaw Convention. After
that, by The Hague Protocol, 1955 and same has been into effect to by Carriage by Air Act 1972.  

3. Warehousing (Development and Regulation) Act, 2007


Warehousing (Development and Regulation) Act, 2007 for development & regulation of the warehouses,
regulations of Negotiability of Receipts of warehouse and promote the orderly growth of warehousing
business in the country.

Section 7: International Insights


This industry face technological challenge from international company. They are superior in technology, cheaper
transport, and warehousing. So, they are faster than our Indian company when it comes to delivering goods to end
customer.
Some US company are major competitor such as FedEx.
German company DHL. These two major international companies’ major competitor for Indian logistic
companies.
Advantages-Indian logistic companies’ advantage over the international companies because they know the Indian
market, Indian people and culture. Indian companies can use Indian demographic dividend which gives them
cheap labour compared to other international company.
Indian government promoting Indian companies but not international company.
India has a large population compared to international countries. It has a second largest market in the world.
Disadvantages-technological backward labour. Indian labour comparatively backward in handling technology
than international labour.
India has large unskilled labour that is one of the disadvantages we have.
India has poor infrastructure facility such as warehousing, road and railways.
India is a one of the countries which have higher fuel price. That makes transport expensive and increase cost for
industry and lower the profit.
International market importance
India exports a lot of goods through its logistic industry. Countries like USA (16%), United Arab (9%) China (5%)
and Hong Kong (4%) are some of major country who import from India.
Whenever our industry export goods earn more profit. We mostly export tea, precious, semi-precious stone. It
gives large business to industry and profit percentage is large. Also, we import technology from international
market.

Section 8: Environmental Analysis


It enables individual how microeconomics impacts the specific industry. In logistic there are number of matrices
that indicate growth contraction. Understanding the factors is important for businesses transfer couriers across the
world.
Supply demand and CPI (consumer price index) it is important indicator for logistic industry. One of the important
indicators for headline perspective is performance of manufacturing sector. After all industry focus on
international and national shipment of goods. Normally supply of the product usually correlate with the growth of
a sector. For example, UK in 2018 overall economic growth fall down during first quarter and manufacturing
inputs decline rate is alarming for the government.
Some other microeconomics factors also that affecting the sector is inflation, price level, rate of economic growth,
GDP of a country and unemployment.
These are some microeconomic factors that that affect the logistics sector most. For example, in India we have
excess manpower and that's why we have higher unemployment rate. This gives a cheap labour for logistic
industry that industry can use for his growth. Because of the cheap labour logistic industry growing fast in India.
Economic growth rate-as per the United nation in 2022 India's economic growth rate will be 10.1 per cent. It
means people have more buying power inflation at stable rate it is right situation for logistic industries to flourish.
Interest rates-Bank charging interest on loan it is important factor for industry if it is low industry will grow
faster if there is demand. But if it is high is difficult to industry to do business because loan is too expensive for the
industry. For example, Indian bank rate for businesses is 14 to 22%. it varies bank to bank. Government of India
wants their economy growth back, so they are encouraging the banks to lower their rates. Logistics industry is
comparatively new in India
So, it wants more capital and that's comes mostly from loan. In covid 19-time logistic industry achieve growth.
Exchange rate-exchange rate also measure factor for the industry it also so gives more profit to industry. For
example, China is deliberately devaluing its currency so that Chinese goods look cheaper in international market.
Devaluing currency means deliberately decrease your currency price compared to Dollar. So, you get more profit
because you are paid by dollar.
Trade agreements-lowering the trade barriers increasing the free trade it will benefit consumer and industry also.
But there are some factors it will affect domestic industry also. Trade agreement are agreement with two or more
countries which include some trade give them fast import and export. Some benefits are increasing in efficiency,
fairness of transaction and increase innovation. For example, India has free trade agreement with many countries
such as Sri Lanka, Bhutan, Nepal and Indonesia. So easier for transfer goods one to another country. So logistic
industry I have benefit there.
Commodity prices-commodity prices decided by many factors but as per logistic industry fuel price, electricity
price that influence commodity price. India having high fuel price compare two worlds so its commodity price
rise.
National development strategy of India- just after independence we follow close economic model. We want
self-sustaining economy which means we want to produce each thing on our own. But that strategy does not give
what we want. After that we face economic crisis and in Man Mohan Singh era, we adopt FDI. And this leads to
improvement in technology. Government as well as private sector player also come in a picture for providing
logistics services. Now government want ease of doing business. For that government improving infrastructure
such as rode, railway lines and airport. And this will help logistic industry in huge manner because logistics
business depends on this kind of infrastructure.
Industry contributes to S.D.G- sustainable development goals (SDG) in 2015 goals adopted by United Nations
country's part of UN agenda 2030. Because logistic involved in many businesses directly and indirectly. Change in
logistic it will help achieve SDG goal. Research suggests that the strong positive correlation between SDG goals
and logistics industry. Using sustainable resources such as electric vehicles, an advanced technology using this
logistic industry contributing in SDG goals.

Section 9: Industry Forecasts


A. The Indian logistics market is expected to grow at 10.5% between 2020-24 and different companies are doing
this by using new technologies.
B. In 2021 numerous trends will drive growth and all of this will include adoption of new technologies. Be it
tactical and operational decision making, routing, fleet optimisation, data analysis, or strategic planning,
technology will be all-pervasive. These assets could be upgraded to military standards in terms of design,
construction and equipment capacity, the commerce and industry ministry has proposed in a draft cabinet note
on the National Logistics Policy, 2020.
C. Government policies are gearing to towards helping the logistics industry as the Indian government plans to
draw up a digital inventory of logistics assets and manpower that can help in emergency situations like in the
current pandemic. This new policy can reduce the logistics cost by 5% over the next 5 years.

Section 10: Industry Analysis


SWOT ANALYSIS

Strengths –
a. Availability of resources
b. Skilled workforce
c. Contributes heavy towards customers satisfaction
d. Established facilities
e. Strong management
Weakness –
a. Weak supply chain
b. Online presence/ITS
c. Lack of funds/ High capital expenditure
d. Lack of fully organized system for control
e. Large number of unorganized players
Opportunities –
a. Rapid growth rate target
b. Online market
c. Introduction of new technologies
d. Implementation of old quadrilateral and NS-EW corridor.
e. Heavy investment in development projects.
Threats –
a. Increase in fuel cost
b. Different changes in government policies
c. Taxation
d. Traffic situation
Final 6 companies chosen by the group in the industry for further analysis in the next phase.
1) Bluedart Express Limited
2) Delhivery Private Limited
3) Allcargo Logistics Limited
4) Container Corporation of India Limited
5) Mahindra Logistics Limited
6) Gati Limited

References
6 Effective Ways To Beat Logistics Companies And Transportation Competition. (2020, August 22). Retrieved from
http://www.navata.com/cms/how-to-beat-logistics-companies/
Top 10 Logistics Industry Trends & Innovations in 2021. (2021, July 27). Retrieved from https://www.startus-
insights.com/innovators-guide/top-10-logistics-industry-trends-innovations-in-2021/
Research and Markets. (2020, April 01). India's Logistics Market, 2020 Research Report. Retrieved from
https://www.globenewswire.com/news-release/2020/04/01/2009812/0/en/India-s-Logistics-Market-2020-Research-
Report.html
Jadav, Kumar, M., Khusi, Das, O., Prabhaker, Verma, S., . . . Group, I. (2021, August 10). Top 10 Logistics Companies in India.
Retrieved from https://www.fundoodata.com/learning-center/top-10-logistic-companies-india/
Anjali. (2020, December 21). Logistics Industry In India. Retrieved from
https://vakilsearch.com/advice/logistics-industry-in-india/

Submitted by-
Abhishek Bhardwaj-PGFB2102,
Aniket Wath-PGFB2110,
Anukool Shukla-PGFB2113,
Chirag Chhabra-PGFB2119,
Mohit Aswal-PGFB2133.

You might also like