Industry SWOT analysis

SWOT ANALYSIS Primary factors

Strengths
Containerization gains momentum: The transferring cargo through containers (less wastage, quicker delivery), combined with increasing container capacities at ports The inherent advantage has led to container penetration to rise from the current 16% to above 21% by 2012. With planned spending on infrastructure expected to rise three-fold over FY20082012Ethe logistics sector will be a key beneficiary The expansion of highways from two to foursix lanes and the construction of a dedicated freight corridor would lower the cost of transportation and shorten the transit time

Weaknesses
Small-cap risk:

Most of companies are in the small- and midcap space

Median volumes, which are more representative of mid-cap stocks, are only a quarter of what average volumes indicate.

Opportunities
Customers are demanding a single point of contact for all logistics services and are looking for one-stop logistics shopping unable to cope with complexities across their supply chains Many services in the logistics sector are untapped and offer a great opportunity New types of operations, which can force changes to logistics such as just-in-time, total quality management, flexible operations, time compression etc. Need for improved technology for identifying, locating and tracking materials

Threats
GDP slowdown Current scenario may have an adverse effect Entry of new players/overcapacity Industry is highly fragmented Liquidity risk