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Government initiative in Infra structure growth in Building Rail & Dedicated freight corridor & Bharatmala project will accelerate the growth of Express Logistics: Bonafide Research

India's Express Logistics Market is poised for accelerated growth. Government initiative in infrastructure growth and GST implementation has ramp up the demand of express Logistics. Government projects like "Bharatmala pariyojana" will increase road connectivity for better transportation. Express Logistics market has shown huge potential in last few years. It's having rapid growth & huge demand in upcoming years due to implementation of GST and Government initiative in infrastructure development in logistics & Shipping. Express Logistics, is a key segment of Logistics industry. Businesses need express logistics services tuned to such requirements for reaching out to the customers within tight timelines, delivering products, spare parts, samples, contract letters etc. By creating an integrated chain including multi-modal transport modes, both air and surface, express industry has fine-tuned the logistics process for time bound deliveries of shipments across domestic and international regions. According to recently published reports of Bonafide Research "India Express Logistics Market Overview 2016-2022", Express industry is a premium segment of the logistics industry. It providing logistics services for movement of time sensitive shipment. In express logistics industry services includes end to end logistics solution, one-stop solution, time bound service, tracking and delivery confirmation, global reach, premium pricing. The express industry is a small and niche segment but the level of integration and ability to delivery within short timelines is amongst the highest in the industry. The express logistics has a large number of players and the intensity of the competition is high for the industry in general though the industry leaders with ability to differentiate on service quality and network are in a relatively better position. Government has taken initiative to promote the manufacturing sector and infrastructure development to increase the demand of logistics functions. Major investment by public and private sectors in last five years on infrastructure, technology upgrades and expansion of sea and airport facilities, and dedicated logistics corridor in the rail network are expected to strengthen the Indian logistics infrastructure. The booming e-commerce market in India is bringing in new opportunities for LSPs. GST implementation has change the taxation structure nationwide and will transform the distribution structure of majority of industries as it eliminates the need for dedicated warehouses for each individual administrative region. The ministry of road transport and highways has undertaken development of about 7000 Km of national highways under "Bharatmala pariyojana" at an estimated cost of 80,000 crore. Ministry of Railway has introduces implementation of Eastern Dedicated freight corridors (EDFC) and Western Dedicated Freight corridor (WDFC) with freight train speeds of maximum 100 KMPH. The Proposed GST regime and e-commerce will alter the landscape in warehousing, supply chain management and third party logistics business. GST implementation will be a game changing event for business and particularly for organised logistics players. The growth of the industry will be driven by the current major customer segments, auto components, banking & finance, garments, pharmaceutical, IT hardware and mobile phones. In addition, new segment new segments like organized retail, e-commerce and others are expected to emerge as major customer segments in the medium term. Major companies operates in Express Logistics Market of India are, Gati Limited, FedEx transportation and supply chain private limited, Safexpress limited, Blue Dart private limited, Transportation corporation of India, First flight private limited, SpotOn Logistics private limited, TVS logistics Limited, Mahindra logistics Limited etc.


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