creating a new era of logistics in india · sri mahankali temple, sri dattatreya temple, sri vyasa...

© All rights reserved. ‘Point of View’ is a bi-monthly from HITEX. www.hitex.co.in

September 2019 ISSUE | Vol. 37

UPCOMING EVENTS: INDIA LAB EXPO & ANALYTICA ANACON INDIA |

EXPRESS FOOD & HOSPITALITY INDIA | KITCHEN INDIA EXPO |

HYDERABAD COMIC CON | TREDA PROPERTY SHOW | PETEX INDIA’19

Creating a New Era of Logistics

in India

Gnana Saraswati Temple and Kuntala WaterfallsGnana Saraswati TempleGnana Saraswati Temple in Basara is a popular pilgrimage site in Adilabad district of Telangana. Gnana Saraswati Temple is a unique temple of the Hindu goddess of knowledge, music, art, wisdom and learning. Children are brought here for Akshara Abyasam, the ceremony to initiate learning. This must-visit attraction in Telangana is located at 35 km from Nizamabad, 158 km from Adilabad and 212 km from Hyderabad.

Gnana Saraswati Temple in Basara is one of the two oldest temples of Saraswathi in India, the other being located in Kashmir. This ancient temple is one among the three temples created near the confluence of the Manjira and Godavari rivers by the Rashtrakutas. It is believed that King Bijialudu of Karnataka built the Gnana Saraswati Temple.

Sri Mahankali Temple, Sri Dattatreya Temple, Sri Vyasa Maharshi Guha, Sri Vedavathi Shila (Sri Vedavathi stone),

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Distance from HITEX: 202 Kms

Reaching Basara

Travel time: 4 hrs

Kuntala WaterfallsKuntala Waterfalls is situated in the middle of the Sahyadri mountain range near Neredikonda village in Adilabad District, about 50 km away from Basara. Kuntala Waterfalls is the highest waterfall in Telangana at 200 ft high.

Formed by Kadam River, Kuntala falls cascades down through two steps from a rocky platform. The waterfall is situated in a serene location with fantastic views of the nature surrounding thick forest. The road between Neredikonda and Kuntala is filled with thick vegetation and the drive offers wonderful experience.

It is a popular one-day outing and good weekend getaway from Hyderabad. You can drive till the entry point of waterfalls from where you will have to trek down about 400 steps to reach the bottom of the waterfalls.

Monsoons and post-monsoons are the best time to visit Kuntala Waterfalls. The flow of the waterfall depends on the release of water from the Kadam Reservoir.

Distance from HITEX: 260 Kms

Reaching Kuntala Waterfalls

Travel time from HITEX: 5 hrsTravel time from Basara: 1 hr

Godavari River and Lord Shiva temple at river Godavari bank are the other attractions in Basara.

The best time to visit Basara is between September and March. Accommodation is available in several temple guest houses and hotels.

02 Point of View bi-monthly | September 2019 Issue | VOL. 37 www.hitex.co.in 03

important developmental phase and holds the burgeoning opportunity to serve India to become an important part of the global supply chain. A renewed Indian logistics industry will have huge implication on exports and augment programmes like Make in India.

During the last two months, HITEX hosted events and exhibitions of bakery and confectionery, real estate, steel and houseware, furniture, pharma, fashion, cable and broadband, sports, aquaculture, agriculture and industrial engineering sectors.

We have events and exhibitions of biotechnology and medical diagnostics, food & hospitality, pet care, kitchen technology, comic media and real estate sectors to be held in the upcoming months.

We have more updates on these and what’s happening at HITEX in the pages inside.

K. V. Nagendra PrasadCOO, HITEX

Message from cOOLogistics is central to the economic growth and competitiveness of a country. It is especially more important for an emerging economy like India, which also has one of the highest transactional costs of doing business.

Logistics industry runs the world’s supply chains which bring resources, seeds, fertilizers, materials, machinery and equipment to farms and factories, as well as finished products to warehouses, supermarkets and households.

When logistics functions at their full potential they are the basis upon which local, regional and national economies are built. Logistics strengthen connectivity between inter-dependent primary, secondary and tertiary sectors of the economy. In short, efficient logistics builds efficient trade, which in turn builds efficient economy.

How efficiently goods move to their final destinations is a crucial factor for a country’s opportunities for trade and economic growth.

Indian logistics industry is going through an


A healthy and efficient logistics industry is essential for the economic growth of a country. For India in particular, which is seeing substantial growth in the demand and supply of goods, there is a need for a new wave of specialized logistics systems and processes.

India’s US$160bn logistics industry is in the middle of a much-needed transformation driven by structural reforms (GST, e-way bill) and the government’s infrastruc-ture thrust (Dedicated Freight corridor, Sagarmala), the surge of the service-ori-ented businesses versus the traditional asset-heavy business models and growing formalization of the industry to motivate organized players.

There are gaps in the industry but the measures to fill them are being put in place. The industry has enormous growth potential that can be accomplished when the needs and challenges are dealt with.

GROWTh DRIVERS

Increasing consumption

India’s per capita income passed over $1,700 in FY18 and is swerving close to the Wealth S-curve ‘tipping point’ of $2,300. FMcG S-curve also suggests that as India’s GDP/capita can grow from $6,800 in FY18 to $11,800 in FY23. The FMcG spending per capita is expected to increase from $250 in 2016 to close to $800 in 2023, recording a threefold growth. Given this imminent structural shift, the next decade should offer disproportionate consump-tion and opportunity. There is growing demand for faster service times, pushed partially by the high customer experience bar set by e-commerce companies.

Rising Tier 2 and Tier 3 Cities

It is estimated that 45-50% of the con-sumer spends by 2025 would be led by tier 2 and tier 3 cities. In e-commerce, for instance, metros and tier 1 cities account

for 85% of the 2 million shipments a day currently. The total number of shipments is expected to rise to 15 million a day by 2021, of which 5 million (~33%) are expect-ed to come from tier 2 and tier 3 cities. According to cRISIL, 30-40% of current FMcG sales come from rural centers, and rural demand is exceeding urban demand. E-commerce businesses, FMcG compa-nies looking for entry into tier 2 and tier 3 cities and pharma and food manufacturers that need specialized channels, are all put-ting the spotlight on logistics companies.

Boost from Manufacturing

Manufacturing is expected to contribute a large share of growth in consumption. Domestic manufacturing is estimated to grow at 14% cAGR to $1 trillion by 2025. A good deal of this growth can be attribut-ed to the Make In India initiative.

Government Spending

Increased government spending on in-frastructure development like building

ports, roads, multi-modal logistics parks and dedicated freight corridor will help increase the efficiency of the logistics in-dustry in a large way. The Indian govern-ment has plans to spend close to $90bn in FY19 on various infrastructure projects. The government is working to improve the road network with over 700 Public Private Partnership (PPP) projects and has planned to invest $108 billion for building new roads and highways by 2024. Initia-tives like the Sagarmala program, Inland Waterways program and coastal shipping can the increase modes of transport.

Infrastructure Status & Policy Support

Grant of infrastructure status to logistics in 2017 gave it a much needed boost and now facilitates infrastructure lending on easier terms with enhanced limits, reduce costs, access larger amounts of funds from External commercial Borrowings (EcB). In addition, GST and the E-way bill gave mo-mentum to structural shifts in the industry.

ChallENGES

Disruption in the industry will stem from the needs of the logistics ecosystem to respond creatively to existing structures as well as new avenues of demand, policy changes, and technology.

Unorganised Market

With 80% of the trucking market and 74% of the warehousing market being unorga-nized, Indian logistics market is highly un-organized. More than 85% of the trucks are owned by fleet owners who own less than 5 vehicles. Lack of best practices, technology adaption and skilled workforce in operating these fleets leads to large in-efficiencies in terms of capacity utilization, tracking, pricing visibility and on-time de-livery.

Creating a New Era of Logistics

in India


Underutilization

Average utilization of trucks in India is at 40% compared to ~ 65% in developed countries. Demand-supply mismatch, no load return journeys, low load factors and Informal workforce are some of the rea-sons causing low utilization. Demand-sup-ply mismatch leads to 30%-50% of trucks being underutilized in the return journey.

Turn Around Time and Reverse Supply Chain Implementation

Average speed of trucks in India is 300-325 km/day compared to 700 km/day in developed countries. Agricultural supply chains, especially with perishable prod-ucts, incur higher losses. The industry is also facing the higher product returns due

to the increase in online business and lib-eral policies offered to the consumers. Ef-fective and efficient reverse supply chain implementation may help in managing these returns along with the end of life product returns. High dependence on road logistics leads to relatively longer turn-around times and more challenges in on time delivery.

Road Ahead for Logistics CompaniesAnchored on these transformational de-velopments and the measures to take on the challenges, logistics companies in In-dia have the opportunity to create a new era of logistics and build integrated ser-vice delivery through renewed efficiency.

08 Point of View bi-monthly | September 2019 Issue | VOL. 37

Bakery Business Trade Show

10th – 12th July, 2019 Organizer: hospitality First India

Bakery Business is the national trade fair for bakery businesses & professionals. Exhibitors from the bakery industry showcased their wide-ranging products, processes and equipment. The event stands tall for its international styling, comprehensiveness and vastness of the industry.

cONcLUDED EVENTS Gruhapravesham

13th & 14th July, 2019

Organizer: India Property Online

Gruhapravesham is India’s longest running series of virtual and offline property shows. Real estate companies showcased wide-ranging properties from Telangana and Andhra Pradesh. The event created a market place for builders and allied service providers to meet and interact with property seekers.

Deep Mela

19th – 21st July, 2019 Organizer: Deepshika Mahila Club

Deep Mela 2019 showcased a wide range of artefacts, jewelry, accessories, cosmetics & beauty products, home decors products, knitted wear, crocheted items, embroidered things, gifts and souvenirs, food and beverages sourced primarily from women-lead businesses.


Indian Stainless Steel houseware Show

20th – 22nd July, 2019 Organizer: Steel Market Info

Indian Stainless Steel Houseware Show brought India’s leading housewares manufacturers, raw material providers, traders, retailers, wholesalers, distributors, buyers and decision makers under one roof. The event facilitated exhibitors to connect with new distributors, wholesalers, retailers, buying-decision makers of institutional purchaseing, buying agents and trade buyers in existing and new areas.

Furniture & home Products Expo

2nd – 5th August, 2019 Organizer: Prompt Trade Fairs

Furniture & Home Products Expo showcased extensive choices in home furniture, interior design, furnishing, framed artworks, wooden artifacts, handicrafts, upholstery, metal sculptures, lamps, decorative lighting, paintings, wall art, patio furniture and modular kitchen equipment.


Pharma B2B Expo

9th & 10th August, 2019 Organizer: Welldone Media

Pharma B2B Expo drew together pharmaceutical companies, franchisees and distributors and provided them opportunities to explore new business opportunities in pharmaceutical and the allied sectors and strengthen the existing ones. The two-day event was an interface between various domains of pharmaceutical and the allied sectors in India.

StyleTatva

10th & 11th August, 2019 Organizer: FICCI ladies Organisation, hyderabad

Women entrepreneurs from across India came together and showcased over 100 brands and related products at StyleTatva. The event is a home décor and fashion spectrum curated by experts in their respective fields and offered a perfect platform to shop for the best, capture enormous business opportunities, interact with like-minded entrepreneurs and showcase skills and products.

India International Optical & Ophthalmology Expo (IIOO EXPO)

3rd – 5th August, 2019 Organizer: SD Promo Media

IIOO Expo provided a B2B platform for national and international optical, eye-care and allied products companies to showcase their products, interact with wholesalers, distributors and retailers, create relationships with peers, build new connections in the sector and expand their business network.


CableNet Expo Vision

16th – 18th August, 2019 Organizer: Cablenet Communications

Digital communication and networking companies, internet service providers, cable television and multiple system operators showcased new technology trends in the cable television, internet and content streaming sectors. The event also featured seminars on latest trends in industry, future of industry, awareness on Govt. policies, new tariff orders and skill development sessions.

SportExpo India 2019

23rd -25th August, 2019 Organizer: hITEX

Sport Expo is India’s premier exhibition on sports, fitness and wellness products. The event offered an ideal platform for brands, manufactures, distributors and retailers to showcase their products and services to a large audience. Leading international sports & fitness brands participated in the event and interacted with consumers and sports enthusiasts.


aqua aquaria India

30th August -1st September, 2019 Organizer: The Marine Products Export Development authority (MPEDa)

Aqua Aquaria India 2019 showcased the latest strides in aquaculture and ornamental fish breeding/rearing technology to encourage diversification and promote intensification in a sustainable manner. The event provided an interactive platform to various stakeholders to deliberate on measures that would fuel the growth of the industry.

aGRITEX 2019

5th – 7th September, 2019 Organizer: Kenes Exhibitions

AGRITEX 2019 provided a unique platform encompassing contemporary agriculture, dairy farming, food processing, aquaculture and horticulture. The event showcased latest technologies, equipment and best-practices in agriculture and food production sectors. Experts and scientists from across the globe shared their expertise and discussed the latest innovations.


IndExpo

6th – 8th September, 2019 Organizer: Indore Infoline

IndExpo connected businesses pertaining to industrial engineering, machine tools, infrastructure development, electrical equipment, construction equipment, industrial supplies and industrial automation. Leading industrial supplies companies showcased their latest machine tools, hand tools, power tools and various other industrial products.

20 Point of View bi-monthly | September 2019 Issue | VOL. 37

TREDa PROPERTY ShOW

18th - 20th October 2019 Organizer: Telangana Real Estate Developers association

TREDA Property Show will provide a platform for real estate developers, builders, promoters and financial institutions to showcase realty properties, building material, construction technology & equipment and financial services. The event will help people aspiring to purchase properties or seeking other solutions related to the real estate industry in Telangana.

PETEX INDIa’19

1st – 3rd November, 2019 Organizer: hITEX

PETEX INDIA is the largest pet care event in India. As a gateway to the Indian pet care market, the event helps global pet care brands to showcase their products, understand market trends, generate highly targeted business leads and build brand recognition value.

B2B and B2C segments of PETEX INDIA’19, held on two exclusive days, will have special focus on their respective target audience and help exhibitors to maximize their reach.

hYDERaBaD COMIC CON

12th & 13th October 2019 Organizer: Comic Con India

Hyderabad Comic Con will feature the best of comics, movies, television, gaming and cosplay. The one-of-its-kind event will demonstrate India’s ultimate pop-culture attracting thousands of enthusiasts and provides exhibitors, fans and partners a platform to celebrate their love and passion for comics and pop culture.

UPcOMING EVENTS

INDIa laB EXPO & aNalYTICa aNaCON INDIa

19th – 21st September, 2019 Organizer: Messe Muenchen India

India Lab Expo & Analytica Anacon India focus on laboratory technology, analysis, biotechnology and diagnostics. The three-day events bring together national and international exhibitors, consultants, business experts and key government officials under one roof to discuss the best practices and seek solutions to some of the most imperative challenges related to the industry.

KITChEN INDIa EXPO

4th to 6th October 2019 Organiser: Traditions

Kitchen India Expo will feature ‘Anything and Everything of Kitchen’. Exhibitors will showcase extensive products from modular kitchen to kitchen appliances, groceries to kitchen equipment, confectionaries to spices and organic produce to utensils and many more. Live cookery shows by celebrity chefs, cooking contests, kitchen design discussions and several other engaging activities will attract cooking and kitchen technology enthusiasts.

EXPRESS FOOD & hOSPITalITY INDIa

24th – 26th September, 2019 Organizer: Global Fairs & Media Pvt. ltd

Express Food & Hospitality India is a focused B2B trade show for the fast growing food & hospitality industry with the main objective of creating bigger opportunities and successful businesses for companies and trade professionals in India. The event brings together sellers and buyers from across India, offering Indian and international brands a wide spectrum of opportunities for business networking and partnerships in the Indian market.


creating a new era of logistics in india · sri mahankali temple, sri dattatreya temple, sri vyasa...

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