According to a Frost & Sullivan report, a spurt in manufacturing activities has helped the Indian logistics sector to expand its activities with the sector expected to touch US$120.42 billion in 2014 According to a report titled ‘Strategic Analysis of Indian Logistics Market’ by global consulting firm Frost & Sullivan, the Indian logistics sector is expected to touch US$120.42 billion in 2014. The report said that a spur in the manufacturing sector has created several opportunities for the logistics segment, with the latter notching up revenues worth US$75.19 billion in 2009.
In this context D Ramanathan, director of Sunlight Logistics Private Limited, a mid-sized logistics firm in Chennai says, “Robust growth in the manufacturing sector has resulted in more consignments coming to logistics operators. Transportation business that was lying dormant for several months has witnessed a revival in the past few months. We expect that a surge in manufacturing activities in the coming months will further aid the growth of the logistics sector.” It is to be noted that transportation accounts for nearly 62% of the logistics business in India.
 Contribution of agriculture in logistics business
The report also highlighted the contribution of the agricultural sector towards the logistics business of the country. It said that owing to widespread transportation and storing activities related to agro products, agriculture accounts for a little over half of the total logistics market in India.
“The Indian logistics market has also benefited with the entry of foreign companies in the country that carry out their activities with the help of domestic logistics firms since they are unaware about the government policies and the distribution pattern in the country,” says R Kumar, general manager of PL Shipping and Logistics, a mid-sized logistics service provider (LSP) in New Delhi.
The report also focussed on setting up logistics parks for sectors such as Fast Moving Consumer Goods (FMCG) and pharma considering their need for high quality warehousing facilities. However, poor infrastructure is still the major bottleneck for the sector with the report expecting it to improve with the development of inland waterways, railway freight corridors and road network. Arup Choudhury |
