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Logistics

Industry Summary

  • The Indian logistics sector is estimated to be US$ 215 billion in 2020.
  • Logistics cost in India is ~14% of GDP, which is higher compared to 8-10% in developed nations. Govt aims to reduce this to 10% by 2022.
  • The sector employs more than 22 million people.
  • Key segments include Road Transport (dominant), Rail, Water, and Air.
  • E-commerce boom has significantly boosted the express delivery and warehousing segments.
  • Implementation of GST and E-way bill has improved efficiency and turnaround times.

Value Chain

Step 1

Order Processing

Order receipt, verification, documentation

Step 2

Warehousing

Storage, Inventory management, Picking & Packing

Step 3

Transportation

Line haul, First mile, Mid mile

Step 4

Last Mile Delivery

Delivery to end customer

Step 5

Reverse Logistics

Returns management (if applicable)

Cost Drivers

  • Fuel Costs
  • Vehicle Maintenance & Asset depreciation
  • Manpower (Drivers, Delivery personnel)
  • Tolls & Taxes
  • Warehousing rentals

Revenue Drivers

  • Freight rates
  • Volume of goods moved
  • Value-added services (packaging, tracking)
  • Warehousing fees

Growth Drivers

  • E-commerce growth
  • GST implementation (Tax simplification)
  • Infrastructure status to Logistics sector
  • Dedicated Freight Corridors (DFC)
  • National Logistics Policy

Key Customers

  • Manufacturing & Auto
  • E-commerce & Retail
  • FMCG
  • Pharma
  • Export-Import trade

Key Players

  • Container Corporation of India (CONCOR)
  • Blue Dart Express
  • Delhivery
  • Allcargo Logistics
  • Mahindra Logistics
  • TCI (Transport Corporation of India)

Channels

  • 3PL (Third Party Logistics)
  • Transporters/Fleet Owners
  • Courier/Express Services
  • Digital Logistics Platforms