EXPRESS DELIVERY INDUSTRY IN INDIA

An Analysis on Future Prospects and Challenges

By: Saras Pokhriyal

A BACKGROUND

The past decade witnessed a sea changes in the way our economy behaves and consumes. The fuel of liberalization has propelled may new sectors into existence and has provided the impetus that many others required. Consumerism as always paved the way for competition and with it the belief that ´Consumer is the KINGµ. . The past decade has seen India transforming into a consumer based economy.

Health and Wellness. FMCG. Customer First or the ´Customer is the Kingµ the idea was to keep the end user happy by customizing solutions for him. BFSI to name a few understood that to have a ´share of voiceµ in the consumers mind they needed to be as close as possible to the consumer. Hospitality & Travel. . Sectors such as Retail. whether it was QSCV. Automobile.So.

Hence there was a need for some one who could bridge this gap and bring the two closer. .

.A need for someone who could reduce the time of communication and help manufacturers/marketeers be present at the right place at the right time.

Hence. Logistics and supply chain became an integral part of each and every business and thus giving rise to the need for specialized players who could take care of the logistical requirements of the organizations .

COURIER INDUSTRY: THE STORY SO FAR .

The Indian domestic courier industry stands at around INR 22 bn. in revenues and is still at a very nascent stage. The organized sector governs nearly 90% of the overall market. . It is a very disintegrated industry with around 2300 players of which 20 are major players with national presence 2000 are in the semi-organized sector and the rest in the unorganized sector.

SALIENT FEATURES The industry has exhibited a growth of about 30% over the past four years and is expected to grow at 25% for the next 2 to 3 years. but is forecasted to reach 40% by 2017. International express cargo holds 6% of the express cargo industry. .

EXPRESS DELIVERY INDUSTRY: THE NEXT BIG THING .

Expected to grow at the 20% CAGR over the next 5 years The bulk business is dominated by 24 hrs delivery guarantee and next day delivery. Of this approximately INR 26 bn was generated by the unorganized sector. .definite delivery services Valued at around INR 40 bn. The Express Industry Council of India projects the industry to grow at 20% every year. Expresses business offer time.

3PL MARKET: THE CASH REGISTERS .

The 3PL market in India is at a very nascent stage. The market is estimated at about USD 890. FMCG.9% to touch USD 3556.3 mn The growth is driven mainly by the growth in the Retail. BFSI sectors. Expected to grow at a CAGR of 21.7 mn by 2012. .

COURIER INDUSTRY ² KEY DRIVERS OF GROWTH Economic growth driving demand for logistical solutions. Increased Outsourcing ² key driver for logistics solutions VAT implementations to drive further growth in the industry .

manpower. money and material Consultative + Compliance Bonded: Express. Trucking Dynamic engagement between stock and fulfillment Procurement & Movement .COURIER INDUSTRY: CHANGING INDUSTRY DYNAMICS Services Consignment Tracking Logistics Regulatory Transportation Warehousing Material Movement Today Track & Trace Transportation Compliance Trucking Space Provider Pick up & Drop off Future GPS/GIS ² dynamic routing of industry Movement Solution.

The average speed of on the Indian roadways is about 35 kmph which is much below global average. National highways constitute only 1.THE CHALLENGES Dominance of large number of unorganized companies Infrastructure changes essential to improve efficiencies. Cost of operations .9% of the road network of the country.

Put Industry SWOT that we discussed here. .

KEY PLAYERS Road Express Gati Safeexpress TNT (Speedage) TCI Air Express Gati Safeexpress Bluedart Courier Warehousing Trucking Industry Industry Industry Bluedart Firstflight AFL DTDC Overnite Professional Courier Excel Logistics AFL Om Logistics CWC Safex DHL Delhi Assam Roadway Patel Roadways 3PL Services Excel Bax Global Sem Corp Panalpina Geo Logistics .

BLUE DART .

Blue Dart is the only express .Blue Dart Express Ltd is the market leader with 36% market share in the domestic market.

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