A. B. C. D. E.: IIA Report Logistics Industry
A. B. C. D. E.: IIA Report Logistics Industry
LOGISTICS INDUSTRY
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.
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
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 -
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.
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.
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.
2. Carriage of Goods
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.