AN OVERVIEW OF THE LOGISTICS INDUSTRY IN INDIA AND ITS CHALLENGERS BY K.C.RAMAN

AN OVERVIEW OF THE LOGISTICS INDUSTRY IN INDIA AND ITS CHALLENGERS

BYK.C.RAMANSTRUCTURE OF PRESENTATION 1.BROAD UNDERSTANDING OF THE ROLE OF LOGISTICS IN BUSINESS 2.THE GROWTH OF THE LOGISTICS INDUSTRY IN INDIA 3.THE MAJOR LOGISTICS DRIVERS 4.THE CHALLENGES OF THE LOGISTICS INDUSTRY 5.THE WAY AHEAD

THE WORLD TODAY IS NO LONGER AN AGGREGATE OF ISOLATED LAND MASSES SURROUNDED BY LARGE OCEANS.IT IS A GLOBAL VILLAGE INTERLINKING COMPANIES,ECONOMIES AND PEOPLE FROM VARIOUS COUNTRIES.

IN THIS GLOBALIZED MULTI-CULTURAL WORLD AND BUSINESSES, THE SUCCESS OF AN ENTERPRISE DEPENDS UPON ITS ABILITY TO UNDERSTAND,ADOPT AND OPERATE IN THE GLOBALIZED MARKET PLACE. THERE ARE MORE TRANSNATIONAL AND MULTINATIONAL CORPORATIONS OPERATING TODAY THAN IN THE PAST AND CORPORATIONS ARE LEVERAGING CROSS-CULTURAL TALENT TO OPTIMISE RESOURCES.

THE CORPORATE WORLD TODAY REQUIRES ONLY SUCH HUMAN CAPITAL WHO ARE TRAINED , EQUIPPED WITH KNOWLEDGE SKILLS AND THE RIGHT ATTITUDES TO WORK IN A HIGHLY CHALLENGING GLOBAL MARKETS.

A PASSION FOR PERFORMANCE AND A THIRST FOR CHALLENGERS IS WHAT COMPANIES ARE SEEKING TODAY WHILE APPOINTING PEOPLE.

BUSINESS SCHOOLS HAVE A MAJOR ROLE TO PLAY IN TRAINING YOUNG ASPIRING MANAGERS TO DEVELOP THE REQUIRED SKILLS , ADAPTIBILITY TO THE FAST CHANGING BUSINESS AND TECHNOLOGICAL WORLD , FOSTER GOOD LISTENING AND NEGOTIATING SKILLS,BUILD AND NURTURE RELATIONSHIPS AND UNDERSTAND THE EVOLVING CHANGES IN THE MARKET PLACEBUSINESS SCHOOLS-FEW OBSERVATIONSNUMBER OF SCHOOLS HAVE INCREASED MANIFOLD

INFRASTRUCTURE IS LACKING IN MANY SCHOOLS

SHORTAGE OF FACULTY AND POOR TERMS

INTERACTION WITH INDUSTRY IS NOT ADEQUATE BOTH FOR FACULTY AND STUDENTS

MORE STUDENTS BOTH URBAN AND RURAL ASPIRING TO BECOME CORPORATE MANAGERS WITH INDIA'S ECONOMIC GROWTH

RIGHT PLACEMENTS FOR ALL STUDENTS

STEEP DROP IN EMPLOYABLE CANDIDATES

DISCIPLINE AND QUALITY WHAT OUR GREAT LEADERS HAVE TAUGHT US ..

NO INDIVIDUAL CAN REACH GREAT HEIGHTS WITHOUT THE INFLUENCE OF A GOOD TEACHER

ALL THE RICHES IN THE WORLD CANNOT MATCH THE WEALTH OF EDUCATION

THERE IS NO ELEVATOR TO SUCCESS .WE HAVE TO USE ONLY THE STAIRS

THE MORE YOU TEACH THE MORE YOU LEARN.

DREAM,DREAM,DREAM.CONVERT THE DREAMS INTO THOUGHTS AND THOUGHTS INTO ACTION DR.ABDUL KALAM

WINNERS DONT DO DIFFERENT THINGS THEY DO THINGS DIFFERENTLY

KASHTAPADAMA ETUVAM KIDAIKATHU, KASHTAPADAMA KIDAIKARATHU ENNAIKUMAE NILAIKATHU.. YOU DONT GET SOMETHING WITHOUT REAL EFFORT,EVEN IF YOU GET IT WITHOUT ANY EFFORT,IT WONT STAY WITH YOU FOR LONG

.RAJANIKANTH

THE FIRST STEP INTO LOGISTICSUNDERSTANDING THE CUSTOMERBUSINESS AND CUSTOMERANY BUSINESS EXISTS AND REVOLVES AROUND A CUSTOMER.

THE VERY PURPOSE OF A BUSINESS IS TO FULFIL THE NEEDS,WANTS,DESIRES AND ASPIRATIONS OF THE CUSTOMER.

THE CUSTOMER IS THE CENTRAL FOCUS OF ALL BUSINESS ACTIVITYTHE IMPORTANCE OF A CUSTOMERA CUSTOMER IS THE MOST IMPORTANT VISITOR ON OUR PREMISES. HE IS NOT DEPENDENT ON US. WE ARE DEPENDENT ON HIM.HE IS NOT AN INTERRUPTION IN OUR WORK. HE IS THE VERY PURPOSE OF IT.WE ARE NOT DOING A FAVOUR BY SERVING HIM. HE IS DOING A FAVOUR BY GIVING US AN OPPORTUNITY TO SERVE HIM. MAHATMA GANDHI.BUSINESS AND CUSTOMERSTHERE ARE THREE LEVELS OF CUSTOMER SATISFACTION 1.MEETING THE BASIC NEEDS OF A CUSTOMER

2.MEETING THE CUSTOMERS EXPECTATIONS SO THAT THEY RETURN TO US.

3.GOING BEYOND THE CUSTOMERS EXPECTATIONS, DOING MUCH MORE THAT WHAT THEY EXPECT.

ROLE OF THE CUSTOMERIN PRE-LIBERALIZED INDIA SELLERS MARKET-CUSTOMER WAS A SLAVE TO MARKET FORCES WITHOUT ANY CHOICE THERE WAS NO COMMITMENT ON QUALITY COST AND DELIVERY OF PRODUCTS AND SERVICES 17Customer service before liberalisation

ROLE OF CUSTOMER INPOST-LIBERALIZED INDIA

BUYERS MARKET-CUSTOMER IS THE KING,SUPER BOSS WITH MULTIPLE CHOICES

COMPANIES ARE STRUGGLING TO WIN OVER CUSTOMERS AND RETAIN THEM.

Customer is the King

Business Challengers TodayINCREASING VARIETY OF PRODUCTS

DECREASING PRODUCT LIFE CYCLES

INCREASE IN DEMANDING CUSTOMERS

GLOBALIZATION

SUPPLY CHAIN AND LOGISTICS CHALLENGERSWhat does a Customer Expect?QUALITY AND RELIABILITYPRODUCT VARIETYPRODUCT AVAILABILITYCOMPETITIVE PRICINGRESPONSE TIME AND DELIVERYCUSTOMER EXPERIENCEAFTER SALES SERVICEORDER VISIBILITYRETURNABILITY

THE ROLE OF A BUSINESS ENTERPRISE MANUFACTURING ON TIME WHAT IS REQUIRED BY CUSTOMERS

DISTRIBUTION ON TIME TO THE MARKETS/CUSTOMERS

A COMPANY HAS TO BE COST EFFECTIVE AND RESPONSIVE IF IT HAS TO REMAIN IN BUSINESS.WHAT IS LOGISTICS ? LOGISTICS IS CONCERNED WITH THE PHYSICAL DISTRIBUTION OF PRODUCTS AND SERVICES FROM THE SUPPLIERS TO MANUFACTURERS TO DISTRIBUTORS TO RETAILERS TO CUSTOMERS.

What are the Major Drivers of Logistics ?INFRASTRUCTURE

TRANSPORTATION

WAREHOUSING

LOGISTICS MANAGEMENT SKILLS

INFORMATION TECHNOLOGY

WHAT IS LOGISTICS MANAGEMENT?LOGISTICS MANAGEMENT IS CONCERNED WITH GETTING THE RIGHT PRODUCT, IN THE RIGHT QUANTITY, IN THE RIGHT CONDITION, TO THE RIGHT PLACE, AT THE RIGHT TIME, TO THE RIGHT CUSTOMER AND AT THE RIGHT COST.

The Evolution of LogisticsLOGISTICS AS A DISCIPLINE STARTED WITH THE EUROPEAN ARMED FORCES.

DURING TIMES OF WAR MAINTAINING ONES SUPPLY LINES WHILE DISRUPTING THOSE OF THE ENEMY IS A CRUCIAL ELEMENT OF MILITARY STRATEGY.

SOLDIERS MOVED FROM THEIR BASE TO A FORWARD POSITION AND ALONG WITH THEM ARMS,AMMUNITION,FOOD,EQUIPMENT HAD TO BE MOVED QUICKLY WITHOUT ANY ERRORS OR OMISSIONS.

WARS WERE WON OR LOST DEPENDING UPON THE STRENGTH OF A COUNTRYS LOGISTICS CAPABILITY OR THE LACK OF IT.

IN TODAY'S GLOBALIZED COMPETITION AND BUSINESS WARFARE, COMPANIES EITHER SURVIVE OR PERISH DEPENDING UPON THE STRENGTH OF THEIR LOGISTICS CAPABILITIES.Business LogisticsTHE TERM LOGISTICS IS EXTENSIVELY USED IN BUSINESS TODAY AND MANY COMPANIES ATTACH GREAT IMPORTANCE TO LOGISTICS .

COMPANIES ARE INCREASINGLY FOCUSSING ON PROCESSES LIKE CRM ISCM AND SRM TO IMPROVE THEIR QUALITY COST AND DELIVERY TO FULFIL THE REQUIREMENT OF THEIR CUSTOMERS AND CAPTURE A LARGER SHARE OF THE MARKET.

PERFORM OR PERISH EQUALLY APPLIES TO COMPANIES AND EMPLOYEES.THE GROWTH OF THE LOGISTICS INDUSTRY IN INDIAINCREASE IN TRADE POST LIBERALIZATION, FROM 250 MILLION TONNES TO 3000 MILLION TONNES IN 2010-11

INDIAN ECONOMY GROWING AT ABOUT 8 PERCENT EVERY FIVE YEARS WITH SERVICES CONTRIBUTING ABOUT 55 PERCENT TO GDP,MANUFACTURING 30 PERCENT AND AGRICULTURE 15 PERCENT

INDIA WITH ITS LARGE MARKET SIZE AND OTHER ADVANTAGES EMERGING AS A MANUFACTURING HUB.GLOBALIZATION-COMPANIES CAN MANUFACTURE AND SELL IN ANY PART OF THE WORLD

INDIA EMERGING AS THE WORLDS RETAIL MARKET WITH MANY LARGE WORLD RETAILERS ENTERING INDIA

RISING INCOME OF INDIA'S MIDDLE CLASS AND UPPER MIDDLE CLASS LEADING TO AN EXPLOSION OF MALLS, HYPER MARKETS, MEGA SHOPPING CENTERS,BEAUTY PARLOURS ETC

ECONOMIC GROWTH IN RURAL INDIA HAS RISEN INCOME LEVELS IN OUR RURAL POPULATION WITH INCREASED CONSUMPTION OF GOODS AND SERVICES

INCREASING FLOW OF FOREIGN INVESTMENTS IN INFRASTRUCTURE,AUTOMOBILES,RETAIL,FOOD,PHAR-MACEUTICALS,TELECOMMUNICATIONS,ELECTRONICS AND OTHER INDUSTRIES.THE GROWTH OF E-COMMERCE WARRANTS A SUBSTANTIAL INCREASE IN WAREHOUSING AND TRANSPORTATION.

The Role and importance of LogisticsWITH GLOBALIZATION OF MARKETS AND GLOBAL COMPETITION THE PERFORMANCE OF THE INDIAN ECONOMY WOULD ESSENTIALLY DEPEND UPON HER LOGISTICS CAPABILITIES.

LOGISTICS INDUSTRY GROWING AT ABOUT 15 PERCENT EVERY YEAR WITH REVENUES TOUCHING ABOUT USD 125 BILLION IN 2012

FOREIGN GLOBAL COMPANIES DOMINATING IN INDIA'S LOGISTICS INDUSTRY WITH MASSIVE INVESTMENTS

LOGISTICS BEING A SUNRISE INDUSTRY IN INDIA, KNOWLEDGE AND SKILLS ARE BEING DEVELOPED THROUGH MANY INSTITUTIONS.

WITH DOMESTIC AND FOREIGN INVESTMENTS IN LOGISTICS INFRASTRUCTURE, A SOLID FOUNDATION HAS BEEN ESTABLISHED FOR THE GROWTH OF THE LOGISTICS INDUSTRY.

WITH GLOBALIZATION AND DEVELOPING LOGISTICS SKILLS, COMPANIES ARE FOCUSSING ON THEIR CORE MANUFACTURING PROCESSES AND OUTSOURCING ALL LOGISTICS ACTIVITIES.

INDIAN COMPANIES TODAY OUTSOURCE ABOUT 52 PERCENT OF THEIR LOGISTICS REQUIREMENT TO 3 PL COMPANIES .

THE 3 PL INDUSTRY HAS ACHIEVED MASSIVE GROWTH IN THE LAST DECADE AND GROWING AT ABOUT 20 PERCENT.

THE NUMBER OF EMPLOYEES IN THE LOGISTICS SECTOR IN INDIA IS ESTIMATED AT 4.5 MILLION AND THE NUMBERS ARE GROWINGThe Major Logistics Sectors and the Challengers THE LOGISTICS SECTOR IS HEAVILY DEPENDENT ON ROADS,RAIL,SEAPORTS,AIRPORTS,WAREHOUSING ETC AND THE INFRASTRUCTURE IN THESE SECTORS REQUIRE MASSIVE IMPROVEMENTS.LOGISTICS COSTS IN INDIA ARE ESTIMATED AT ABOUT 13-14 PERCENT OF INDIA'S GDP AS AGAINST 7-8 PERCENT IN DEVELOPED COUNTRIES.AS PER WORLD BANK 2011 LOGISTICS SURVEY INDIA RANKS IN THE 46TH POSITION AMONG 155 COUNTRIES SURVEYED WHICH IS RATHER POOR AND UNSATISFACTORY.INDIA'S RATING HAS DROPPED BECAUSE OF MAJOR INEFFICIENCIES IN THE LOGISTICS SECTOR VIZ.ROADS,RAIL,PORTS,WAREHOUSING, COMPLEX TAX STRUCTURE, CONGESTION AND BOTTLE NECKS, STRIKES AND WORK STOPPAGES, LOW RATE OF TECHNOLOGY ADOPTION, POOR SKILLS OF LOGISTICS PERSONNEL ETC.

ROAD TRANSPORTINDIA HAS THE SECOND LARGEST ROAD NETWORK IN THE WORLD OF ABOUT 4.2 MILLION KMS.GOODS ARE MAINLY TRANSPORTED BY ROAD AND RAIL IN INDIA WITH ROAD TRANSPORT CARRYING ABOUT 65 PERCENT AND RAIL ABOUT 30 PERCENT.FREIGHT MOVEMENT GRADUALLY SHIFTING FROM RAIL TO ROAD AS ROAD TRANSPORT OFFERS FLEXIBILITY, DOOR TO DOOR MOVEMENTS AND SEVERAL OTHER ADVANTAGES OVER RAIL.

HOWEVER THE CHALLENGERS ARE:

NATIONAL HIGHWAYS CONSTITUTE ONLY ABOUT 2 PERCENT OF THE ROAD NETWORK OF 4.3 MILLION KMS WITH A HEAVY TRAFFIC FLOW OF 40 PERCENT.

POOR CONDITION OF ROADS LEADING TO TRAFFIC CONGESTION AND EXCESS FUEL CONSUMPTION

AVERAGE SPEED OF TRUCKS IS ONLY ABOUT 25 KMS PER HOUR. AVERAGE DISTANCE COVERED 250 KMS PER DAY COMPARED TO 800 KMS IN DEVELOPED COUNTRIES.

OVERLOADING OF TRUCKS TO INCREASE PROFITS RESULTING IN DAMAGE TO ROADS AND VEHICLES, REDUCES SPEED, CAUSES CONGESTION AND ACCIDENTS

MULTIPLE CHECK POINTS-AT STATE BORDERS, PAYMENT OF TOLLS,RTO INSPECTIONS,OCTROI,POLICE CHECK ETC ETC

TRUCKS AT STATE BORDERS HAVE TO WAIT FROM 4 HRS TO 26 HRS TO GET THE NECESSARY CLEARANCE WHILE IN CHINA IT TAKES 15 MINS AND IN EUROPE FEWER MINS.TAXATION-MULTIPLE TAXES, VARIATION OF TAXES ACROSS STATES RESULTING IN HIGH COSTS AND EXCESSIVE DOCUMENTATION.

UNATTRACTIVE WORKING CONDITIONS POOR PAY SCALES, POOR OR NON EXISTENT MANPOWER POLICIES, MALPRACTICES ,LONG HRS OF WORK ETC HAVE CAUSED SEVERE SHORTAGE OF DRIVERS AND CLEANERS.

ROAD TRANSPORT INDUSTRY IS HIGHLY UNORGANIZED WITH LARGE NO OF PLAYERS OWNING LESS THAN 5 TRUCKS.HEAVY COMPETITION WITH LOW MARGINS, POOR WAGES, MAINTENANCE etc. Road transport-Way forwardTHE NHDP PROGRAMME TO DEVELOP NATIONAL HIGHWAYS-GOLDEN QUADRILATERAL, EAST-WEST,NORTH-SOUTH AND OTHER CONNECTING EXPRESSWAYS HAVE TO BE SPEEDED UP. LIKEWISE STATES MUST UPGRADE THEIR ROADS.PPP SCHEME FOR DEVELOPMENT OF ROADS NEEDS CHANGES

REDUCE BURDEN OF MULTIPLE TAXES BY IMPLEMENTING GST

REDUCE MULTIPLE CHECK POINTS AT BORDERS

RATIONALIZE TOLL PRICING FOR FREQUENT AND HEAVY USERsSafety-govt to enforce safety regulations, driver licensing, improve working conditions of employees etc

Hinterland connectivity between ports and cargo centres to be actively developed.

Encourage investments to build world class roads to enable higher speed and greater load capacity

Introduce electronic toll collection at toll plazas RAILWAYSRAILWAYSSecond Largest in world spanning 65000kms

Operates 19000 trains daily transporting 2.6 mt of goods and 23 million passengers.

Railways carry about 30 percent of freight

Passenger traffics enjoys priority over freight

To divert cargo from road to rail Dedicated rail corridors are being developed on the west and east coast.

Second Largest in world spanning 65000kms

Operates 19000 trains daily transporting 2.6 mt of goods and 23 million passengers.

Railways carry about 30 percent of freight

Passenger traffics enjoys priority over freight

To divert cargo from road to rail Dedicated rail corridors are being developed on the west and east coast.

Eastern corridor from Ludhina to Dankuni in West Bengal and Western corridor from Dadri to Mumbai

DRCs will create additional freight capacity, establish time-tabled freight services with guaranteed transit time and better service quality

Adoption of high-end technology to track freight

Reduction in unit cost of transportation by speeding up freight train operations and increasing productivity.

Increase in the rail share of freight from the present 30 percent to 50 percent

Total Segregation of freight and Passenger lines for focussed approach.Rail Transport- ChallengersRail freight tariffs are high to subsidize passenger trafficTransit times are long and uncertain. Priority given to Passenger trainsRail terminals used for loading and unloading inadequate with poor qualityRailways are inflexible and bureaucraticPoor customer serviceContainer freights are hiked often to discourage private agencies from operating freight trains

Railways prefer customers who can provide full wagon loads

Special wagons for carrying different types of cargoes not available.

Privatization has not made much headway.WAY FORWARDCreate adequate freight carrying capacity with ability to carry different types of cargoesDevelop additional DFC North-South Delhi-Chennai, East-West- Kolkota-MumbaiImprove quality of services to world standardsImprove connectivity between ports,road networks and terminals to provide intermodal services for first and last mile deliveryDevelop warehousing and Logistics parks alongside railway lines to facilitate direct loading/unloading operationsRationalization of freight structure to encourage freight movementEncourage privatisationIncrease use of IT enabled servicesGive top priority for export cargoesOperate scheduled freight services guaranteeing transit time

INDIAPORTS AND SEA TRANSPORTIndia has along coastline of about 7500 kms with 13 major ports and 187 non-major ports95percent of India's overseas trade carried by sea transportMajor ports handled 545 mt in 2012-13 and 350 mt by non-major portsCargoes handled include petroleum products,iron ore,coal,fertilizers,containersContainer traffic is growing and indian ports currently handle about 9 million Teus.Port capacity expected to increase from 1020 mt to 3200 mt in 2020.

Govt have approved several projects involving foreign and domestic investments.

In 2012-13,32port projects have been approved incl 13 PPP,13 non PPP and 6 captive projects.

Several private ports are emerging such as Krishnapatnam,Karaikal,Mundra,Gangavaram etc.The ChallengersMajor Ports have to be modernized and become more customer orientedWaiting time for ships is still about 3/4 days compared to few hrs in international portsPorts often suffer congestion and evacuation bottle necksDraft restrictions are impeding handling of large ships. Dredging contracts take long time to get approval.Lack of proper connectivity to inland areas is slowing down the evacuation of cargoesMajor ports are overstaffed and suffer from UnionizationLabour productivity is poorHigh costs and poor productivity are diverting foreign ships to call at neighbouring ports.Major ports governed by TAMP tariffs while non-major ports are ruled by market driven forcesThe approach of TAMP has a negative impact on profitability and Returns on PPP projectsCoastal shipping accounts for only 8 percent of the total domestic movementInland waterways has not taken off due to lack of draft,infrastructure,poor connectivity etcCountries such as Bangaldesh ,Germany,US and UK transport major volumes via Inland Waterways.Management of Indian ports suffer from Bureaucracy and lack of customer orientation

Ports Way forwardNMDP programme envisages investments of USD 200 billion in developing 350 projectsThese projects hopefully would increase capacity and improve the standards of portsSpeedy implementation of PPP projects is vitalPrivate sector has to be motivated to develop cargo handling Berths,Container terminals,CFS,drydocks etc etcRestructure TAMP to Facilitate privatizationTendering procedures to be simplified.

Simplification of procedures and documentation would enhance the speed of handlingDevelop infrastructure in line with Global standards,Increase competition through private participationImprove hinterland connectivity through better roads,rail and Inland waterways.IT implementation should be faster and cover many more areas.

THE AIR CARGO INDUSTRYINDIA HAS 136 AIRPORTS BOTH DOMESTIC AND INTERNATIONALAIR-CARGO TRAFFIC HAS INCREASED FROM 0.7 MT IN 1995-96 TO 2.7 MT IN 2011-12.INTERNATIONAL 1.5MT AND DOMESTIC 0.8MTTHE PRESENT TREND INDICATES THAT AIRCARGO TRAFFIC CAN INCREASE TO ABOUT 6 MT BY 2020.AIR CARGO FORMS ONLY 1 PERCENT OF THE TOTAL TRADE BUT ACCOUNTS FOR 30 PERCENT OF VALUE. INTERNATIONAL CARGO ACCOUNTS FOR TWO-THIRD VOLUME IS HANDLED AT MUMBAI,DELHI,CHENNAI,BANGALORE AND HYDERABAD.Besides Metros, the other areas which are experiencing significant growth are Pune,Kozhicode,Cochin,Amritsar,Jaipur,Guwathi,AgartalaPassenger traffic increased from 73 million in 2005 to 205 million in 2011-12FDI has been allowed for development of airportsBesides boosting investments in existing metro airports 37 non metro airports would be developed.

Challengers Inadequate Cargo handling and Storage InfrastructureMost terminals do not offer separate facilities for different types of CargoCongestion at airports and delay in clearance is a perennial problemCold chain facilities to handle perishable ,temperature controlled and other sensitive cargoes are lackingUnlike ports, facilities have not been developed to handle air cargo in inland areas

Way ForwardForeign airlines can invest 49 percent in Indian carriersAirlines can directly import ATFExpand the airport network and provide connectivity to tier ll and tier lll citiesDevelopment of airfreight stations just like icds/cfsRound the clock operations by customsProfessional training programmes to offer programmes on policy,regulations,operations,technology etcDevelopment of IT systems for better connectivity and information flow between all agencies.

WAREHOUSINGWarehousing is a major link in Logistics and forms 20 % of the Logistics marketThis industry is growing at about 35% annuallyAbout 92 % is dominated by unorganized sector with small godowns,unskilled labour and outdated cargo handling equipmentAgri-Warehousing is dominated by govt sector such as FCI,CWC and SWCWith the growth of the manufacturing and Retail,increasing International trade,emergence of organized Retail,Increasing domestic and Foreign investments and 3 PL players ,the warehousinghas become a major business today.

Warehouses today are being modernized with better storage and layout management and fully supported by IT systems.

It has take various forms today such as Logistics parks,SEZ,CFS etc and the capacity is increasingChallengersThere is an acute shortage of good warehousing space.Warehouses owned by Govt agencies are old and Leaking.Millions of tonnes of farm produce are rotting because of lack of warehousing space.Warehouses at ports,airports and railway terminals are congested.Lack of IT systemsIndia is the second largest producer of fruits and vegetables but lot of it is wasted because of lack of cold storage.Poor infrastructureFragmented market with unorganized playersPower shortage and increasing power costsLack of expertise in planning and warehousing techniquesLack of IT penetrationWay ForwardWarehousing capacity has to be increased with construction of modern warehouses with full IT backingGovt warehouses require immediate renovation to fully protect the farm produceMore govt intervention , regulations and initiatives are required to expand and grow this activityCold storage capacity has to be increased

FCI has rolled out a PPP scheme to construct warehouses to increase capacity from 97 mt to 4.5 mtHub and Spoke model to be developed with smaller warehouses at agri- centres and larger warehouses near ports and at major mundies and consumption centres.IT systems need to be injected at all warehousesA modern technologically aided, integrated warehousing and cold chain infrastructure is the need of the hour. THANK YOU