INDIAN LOGISTICS INDUSTRY

EVOLUTION

• Indian economy has witnessed a fast paced growth

• India ranks 39 among 150 countries in logistics

WAREHOUSING

• Is an important characteristic of Indian Logistics

• Dominated by small players with poor facilities

• Growth of many sectors was restrained

OPPORTUNITIES

• Logistics cost in India is very high • Lead times are also high as compared

to other countries

POSITIVES

• Various projects of infrastructure development are undertaken

• More than 37 airports are going to be modernized

CONCURRENT GROWTH

GROWING DOMESTIC DEMAND

Emergence of organized retail

Increase in foreign trade

India becoming a manufacturing hub

REDUCING LOGISTICS COSTS

IMPROVEMENT OF INFRASTRUCTURE

PREFERED MODES OF CARGO MOVEMENTS

ROADS

• Road network of 3.3 million km• 55% of total freight movement is via

roadways• Offer wide reach and easy accessibility

ADVANTAGES

• High cost of transportation• National highways are only 2 % of the

total network

DISADVANTAGES

• National Highway Development Project to upgrade and modernize highways

• Connectivity to ports is also being improved

KEY DEVELOPMENTS

RAILWAYS

• Spread over 81,500 km• Low transportation costADVANTAGES

• Only used for bulk commodities• Limitation in network

DISADVANTAGES

• Golden quadrilateral to be initiated in 2008-09

KEY DEVELOPMEN

TS

WATER/PORTS

• Cheapest mode of transportationADVANTAGES

• Poor state of inland waterways• High turnover time

DISADVANTAGES

• Handling capacity of ports to be increased from 600 mnt in 2007 to 1500 mnt by 2015

KEY DEVELOPMEN

TS

AIRPORTS

• Fastest mode of transportationADVANTAGES

• Low freight movement• Concentration on metro cities

DISADVANTAGES

• Modernization of 37 airports

KEY DEVELOPMEN

TS

EMERGING TRENDS IN LOGISTICS INDUSTRY

CONTD:

Players are planning to increase their operations

Foreign players entering the Indian market

Big domestic companies also coming in the business

EMERGING CONCEPT OF 3PL

Single player manages the entire logistics function of the company

Global sourcing and fierce competition

Value added services have witnessed huge demand for 3PL

CATEGORIES OF 3PL

LOGISTICS PARKS- ONE STOP SHOP FOR ALL LOGISTICS NEEDS

Facilitates domestic and foreign trade

Place built for company’s convenience

Logistics parks are located around SEZs

INDIAN LOGISTICS INDUSTRY- A REGIONAL PERSPECTIVE

LOCATION ATTRACTIVENESS

KEY LOCATIONS FOR THE LOGISTICSSECTORKolkata

One of the oldest port cities.

Gateway to the northeast Indian markets and a key location for trade with China.

Textile and auto-component industry.

Special Economic Zones (SEZs)

Major logistics infrastructureestablished/under construction in Kolkata:

• A 108-acre logistics park is being developed near Kolkata at

Unsani Mouza.

• A logistics park of around 250 acre is proposed to be

developed.

• An integrated logistics park spread over 72 acres is being

developed at Haldia.

• There is a proposal to develop a supply chain and cargo hub

at Durgapur.

Major logistics infrastructure established /under construction in Mumbai:

By 2012, eight logistics parks spread across 600 acres of land are expected to come up around Mumbai at an estimated cost of around US$ 200 million.

An in-principal approval has been received for two Free Trade Warehouse Zones at Panvel that will be spread across 270 acres.

Approximately 20 medium to large container freight stations (CFS) are being developed along the Uran-JNPT road.

Hyderabad

• Jedimetla, Suraram and Sanat Nagar are existing warehouse hubs.

• A 1,500-acre mega industrial park at Pashamylaram and newly

commissioned Hyderabad International Airport.

• Five logistics parks, spread across 220 acres are being developed

by large, organised private logistics players.

• By 2012, around 10 million square feet of warehouse space is

expected.

Industries:• Textiles•Engineering •Pharmaceutical

Sriperumbudur as a major logistics location. Kancheepuram, Oragadam and Tirvallur are the other upcoming logistics locations

in close vicinity of Chennai.

The prominent logistics hubs in Chennai are Madavaram, Poonamalle and Thiruvottiyur.

Six logistics parks spread across 240 acres are being developed in and around Chennai.

Chen

nai

Industries:TextileEngineering goodsAutomobile components

Nagpu

r• Development of MIHAN.

• The Nagpur airport is being developed as India's first

international air cargo hub.

• Six logistics parks spread across 240 acres are

expected to be complete by 2012.

• A rail-based logistics park is scheduled to be

operational by 2009.

Industries;steel plantsoil refinery fertiliser plants

3,500-acre

30 km

US$ 15million

central logistics hub

Vizag (Visakhapatnam)

2,500 acres 180-acre patliRail link

Industries:Several autocomponentsManufacturingElectronics General manufacturing clusters

Bangalore•

On the Golden Quadrilateral.

• garments and textile, booming retail sector and an emerging biotechnology industry

• Four logistics parks by 2012.

7-acre cargo village at airport

4 logistic park in 140 acre by 2012

Indore

• prominent hub for automobile products, pharmaceuticals, textiles, food processing and heavy engineering.

• Freight station at Pithampur.

• proposal to develop 1.6 million metric tones of warehouse through PPP.

1.6 million metric tones of warehouse

Freight station

2,500 acres multi -product SEZ

Alwar (Rajasthan)

• industrial park at Tapukra and an upcoming SEZ at Khushkera

Kochi

• Districts of Kannur,Kozhikode and Malappuram have been shortlisted for SEZ development

• 950-acre port-based SEZs in Vallarpadom and Puthuvypeen…investment of US$ 730 m

750 acre SEZ

950 acre SEZ

STEPS TO STREAMLINE THE LOGISTICS INDUSTRY

1. Setting up logistics parks in SEZs can improve India's competitiveness

2. A national logistics strategy can improve efficiency and lower costs

3. Regulating the sector to bring about uniform service standards

4. Granting industry status to logistics can address inefficiencies

CONCLUSION