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Logistics and Transportation Industry in India

Logistics and Transportation Industry in India

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Published by shailesh Maurya
Hi, all aspiring MBA's

this is project on Logistics and Transportation Industry in India. With reference to
Marketing Management of BLR India Private Ltd.

Project done by my friend Bankim. hope you guys find it useful.
Hi, all aspiring MBA's

this is project on Logistics and Transportation Industry in India. With reference to
Marketing Management of BLR India Private Ltd.

Project done by my friend Bankim. hope you guys find it useful.

More info:

Published by: shailesh Maurya on Aug 03, 2009
Copyright:Attribution Non-commercial

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10/10/2015

India's logistics market is all set to experience a period of explosive organic
growth, judging by independent market analyst Datamonitor's latest research. The
Datamonitor report, "India Logistics Outlook 2007-2008" predicts high double-digit
growth rates for both outsourced and contract logistics in India.

With India's gross domestic profit (GDP) growing at over 9% per year and the
manufacturing sector enjoying double digit growth rates, the Indian logistics industry
is at an inflection point, and is expected to reach a market size of over $125 billion in
year 2010.

Strong growth enablers exist in India today in the form of over $300 billion
worth of infrastructure investments, phased introduction of value-added-tax (VAT),
and development of organized retail and agri-processing industries. In addition, strong
foreign direct investment inflows (FDI) in automotive, capital goods, electronics,
retail, and telecom will lead to increased market opportunities for providers of
logistics services in India.

However, as a result of the under-developed trade and logistics infrastructure,
the logistics cost of the Indian economy is over 13% of GDP, compared to less than
10% of GDP in almost the entire Western Europe and North America.

As leading manufacturers realign their global portfolios of manufacturing
locations, India will have to work on such systemic inefficiencies, in order to attract
and retain long-term real investments.

3PL/outsourced logistics is the outsourcing of a company's logistics operations
to a specialized firm, which provides multiple tactical logistics services for use by
customers as opposed to the respective company having a business unit in-house to
oversee its supply chain and transportation of goods.

With increased geographical distribution of incomes in India, the consumer
markets are extending beyond the five metros of Mumbai, Delhi, Bangalore, Chennai

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and Hyderabad. However, rather than being pre-emptive, the companies are only
following with new distribution outlets. As such, the increased competition across
industry verticals is forcing firms to focus on product distribution, and logistics
outsourcing is gaining further momentum with this.

At just above one-quarter of the entire $90 billion Indian logistics market, is
slated to grow at a compound annual growth rate (CAGR) of over 16% from 2007-10.

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