The report titled “India Logistics Market Outlook to FY24–Driven
by Government Infrastructure Push, New Age Logistics Startups and Technology
Innovation” provides
a comprehensive analysis on the status of the logistics sector in India. The
report covers various aspects including the current logistics scenario in
India, its components viz, freight transportation, warehousing, CEP, VAS, and
cold chain industries, the issues and challenges, major growth drivers,
investment in infrastructure, tech disruptions and innovations, and competition
benchmarking. The report concludes with market projections for the future of
the industry including forecasted industry size by revenue.
India Logistics Market
Overview and Size:
India has been ranked at 4th position
in the world in railway freight traffic after China, US, and Russia. Under the
land freight corridors, 65% of domestic freight volume carried through the
road; high compared to ~50% in developed countries. India Logistics Market has
witnessed an average CAGR during FY14-FY19 due to favorable policy reforms from
the government continued investment in infrastructure by both the government
and the private sector; the influx of foreign players in the market in recent
years, increasing consolidation, and investing in innovative technologies has
stimulated growth in the market.
India Logistics Market
Segmentation:
Freight Transportation
India’s transportation market forms the
largest chunk of the logistics sector with over 50% share in terms of revenues
during FY’2019, due to relatively higher traffic congestion & lack of
flexibility in other modes, and comparatively low barriers of entry in road
freight. Small fleet owners dominated industry (70% of all fleet) operating at
a margin of 8-12% and average transaction days of 12-15 per month. These SFOs
primarily operate on Spot bookings while MFOs and LFOs working on LHAs. A
slowdown in the economy, especially the core sectors is adversely affecting
demand. Excluding November, IIP has fallen during Aug-Dec 2019, (largest fall
of 4.6% in Sep) Capital Goods and Consumer Durables’ production declined by
18.2% and 6.7% respectively.
In the future, IR and GoI are actively making
efforts to make rail freight competitive with road freight. Eastern
and Western DFCs are expected to be fully operational by 2020, and 4 more
corridors are in the pipeline. IR is also looking to rationalize rail freight
rates.
Warehousing
Warehousing Industry in India is home to 200+
organized players and numerous unorganized players. India’s warehousing market
has shown steady growth over the last few years on the back of continued
institutional investment, ever-increasing demand, and consolidation in the
industry, especially after the passing of the GST Act. It has been estimated
that around 90% of overall warehousing space controlled by the unorganized
sector. Unorganized players offer prices ~50% below the market rates as
compared to organized players but offer only storage. More than 20% of
warehouse space is concentrated in 8 major cities: Mumbai, NCR, Pune,
Hyderabad, Bengaluru, Kolkata, Chennai, Ahmedabad. Industrial Warehouses form
the largest share of the warehousing space in the country, with a Grade-A
warehouse becoming the new benchmark for quality. Investment has been rising in
the sector owing to 100% FDI allowance, higher cap rates around 150-200 bps1
greater as compared to commercial assets and approval and funding risk for
greenfield investments
Cold Chain
It has been estimated that about 40% of the
food produced in the country (67 million tones) valued at ₹92 billion is wasted in
2018 at all levels from harvesting to the end stage of consumption. Of this,
4.6-15.9% of food wastage happens in fruits and vegetables, 5.2% in inland
fish, 10.5% in marine fish, 2.7% in meat, and 6.7% in poultry meat. Owing to
this, the cold chain market in India has shown a robust growth with a CAGR
of 10.1% during the period 2014-2019 in terms of revenues. The growth was
primarily due to the growing production and storage of frozen products. It has
been observed that more than 60% of the total cold warehouse capacity only
suitable only for storing potato. The cold chain industry is highly fragmented
with 3,500+ cold storage and transportation players.
Competitive Landscape of
Major Players Operating in the India Logistics Market
Road Transportation Market:
The road transport market is extremely
fragmented with more than 70% of India’s overall fleet being held by Small
Fleet Operators (SFOs), accounting for a majority of the volume of goods
transported. Major companies operating in the road freight market include TCI
Freight, Agarwal Packers and Movers, Varuna Group, Gati, VRL Logistics,
Safexpress, NTC Logistics, KerryIndev Logistics, V Trans, Om Logistics, Sical
Logistics, Bluedart, and DTDC. The road transport industry is highly
competitive on the basis of price, type of fleet, delivery/transit time, and
value-added services.
Warehousing Market:
The warehousing industry in India is
fragmented with the presence of both organized and unorganized players in the
market. Location and price are the key parameters for the selection of a
warehousing partner in the country, with the quality of services, increasingly
becoming important as the industry undergoes a shift from unorganized to
organized players. Major companies include Safexpress, Stellar Value Chain,
KerryIndev Logistics, Shree Shubham Logistics, Central Warehousing Corporation,
Avvashya CCI, TCI Supply Chain Solutions, Rhenus Logistics, Avanthi Warehousing
Services, ATR Warehousing, and North West Carrying Company.
Cold Chain Market:
The cold chain industry consists of companies
offering cold storage and cold transportation services in the country. Under
the cold transport, Organised players are few in number and operate on a pan
India basis, using a hub-and-spoke model for operations. Major companies
provide cold chain services include Snowman Logistics, Coldman Logistics, Gubba
Cold Storage, GatiKausar, Crystal Group, ColdStar Logistics, and ColdEx.
Co-Packing Market:
Major players in the co-packing industry
include CLR Services, ORganico Beverages, Gossip Flavored Milk, Jam Jam Group,
Packmasters, Jain Packaging, and Solutions, Fibro Foods, Usha Foods, Jayanti,
and Bharat Vikas Group.
India Logistics Market
Future Outlook & Projections
The logistics market in India is expected to
experience medium level of growth owing to improving infrastructure, increasing
industrial output, significant consolidation of the market, and booming
e-commerce. The logistics industry is expected to witness the entry of new
players and new mergers and acquisitions between the players. Improvement in
port infrastructure: Dwell times have reduced in JNPT, the largest container
port in the country, as well as all the major ports from 82 hours in
2016-17 to 59 hours in 2018-19 and, are expected to reduce further.
Moreover, phase I of the BharatmalaPariyojana
set to be completed by 2021-223, which includes 34,800 km of roads. Focus on
road infrastructure and dependence on roads for freight transport is expected
to continue. Container truck's proportion in the market is expected to rise in
the future due to its versatility and resistance to adverse weather.
Key Segments Covered: -
Freight
Forwarding Market
By Revenue by Mode of Transportation
Road
Freight (Volume and Revenue)
Rail
Freight (Revenue)
Sea
Freight (Revenue)
Air
Freight (Revenue)
Warehousing Market
Space by Business Model
Industrial/Retail
CFS/ICD
Cold
Storage
Agriculture
Warehousing Space by Region
NCR
Mumbai
Bangalore
Pune
Chennai
Kolkata
Hyderabad
Ahmedabad
Others
Space by End User
3PL
E-Commerce
Retail
Engineering
& Manufacturing
Electronics
Others
Cold
Chain Market
Revenue by Service
Cold
Transportation
Cold
Storage
Revenue by Temperature Range
Freezers
Chillers
Ambient
Snapshot
on Co-Packing Market in India
Companies Covered
TCI
Agarwal
Packers and Movers
Varuna
Group
Gati
VRL
Logistics
Blue
Dart
DTDC
Safexpress
NTC
Logistics India
KerryIndev
Logistics
Stellar
Value Chain
Shree
Shubham Logistics
Central
Warehousing Corporation
Avvashya
CCI
Rhenus
Logistics
Avanthi
Warehousing Services
ATR
Warehousing
Snowman
Logistics
Coldman
Logistics
ColdStar
Logistics
ColdEx
Gubba
Cold Storage
Crystal
Group
Key
Target Audience
Freight
Forwarding Companies
E
Commerce Logistics Companies
3PL
Companies
Consultancy
Companies
Logistics/Warehousing
Companies
Real
Estate Companies/ Industrial Developers
Time
Period Captured in the Report:-
Historical
Period –
2014-2019
Forecast Period – 2020-2024F
Key Topics Covered in the Report: -
India
Logistics and Warehousing Market Introduction
Logistics
Infrastructure
India
Logistics and Warehousing Market Size
India
Logistics and Warehousing Market Segmentation
India
Logistics and Warehousing Market Future Outlook
India
Logistics and Warehousing Market Future Segmentation
India
Freight Transportation Market Size
India
Freight Transportation Market Segmentation
India
Freight Transportation Market Future Outlook
India
Freight Transportation Market Future Segmentation
India
Warehousing Market Size
India
Warehousing Market Segmentation
India
Warehousing Market Future Outlook
India
Warehousing Market Future Segmentation
India
Cold Chain Market Size
India
Cold Chain Market Segmentation
India
Cold Chain Market Future Outlook
India
Cold Chain Market Future Segmentation
Regulatory
Environment
Issues
and Challenges
For More
Information on the research report, refer to below link: -
Related Reports by Ken Research: -
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