Industry Overview:

The transportation is greatly affected by large-scale political, social, environmental, and

economic changes — the major global trends that shape the business environment. The trends
across the globe are similar but affect different geographies in different ways. Exponential
growth in urbanization and the associated increase in transport volumes dictates that the
concept of distribution networks with integrated logistics necessary.

Multimodality will increasingly be needed to transport goods via multiple channels and to
move them rapidly from rail to road to ship to air freight. To spread the movement of goods
more evenly over time, particularly where infrastructure is already under strain today, trucks
also need to be optimized for night time goods distribution. For the global truck industry, in
short, the challenge is to transport a significantly higher volume of goods and to develop new
transport concepts.

India’s Logistic Business is expected $215 Billion by 2020-21 as per CARE ratings which
makes it one of the lucrative industries for expansion. Currently the size of the market is $160
Billion and a 10% growth(CAGR) is expected in 2020-21. Transportation has almost 85% of
the logistics industry and is said to be dominant in the coming years as well. While this is
seems promising a major problem in this industry is that it is highly fragmented and
unorganized; there are many unorganized players in this industry and the organized players
only constitute for only 10% of the market share.

Road logistics industry accounts in India accounts for $100 billion USD with over seven
million goods vehicles moving around the country, the freight volumes have reached 1325
billion ton-km, a figure that is supposed to double by 2025. It is estimated that 14% of our
GDP is spent on transportation and logistics as compared to 6-8% in developed countries.

The spot market or mandi plays a pivotal role in this industry especially within the Indian
context. All players in this sector need to reach out to the spot market to fulfill their daily
transportation requirements.