18045672 logistics and transportation industry in india

8/11/2019 18045672 Logistics and Transportation Industry in India

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Table of content

OBJECTIVE OF STUDY.............................................................................

LIMITATION OF THE STUDY..................................................................

RESEARCH METHODOLOGY..............................................................

INTRODUCTION:......................................................................................

OVERVIEW......................................................................................................................

The Logistics & Transportation Industry...................................................................

INDIALOGISTIS& TRANS!ORTATION IND"STR#$ %'( )ILLIONGOLD*INE..............

IND"STR#SENARIO$.....................................................................................................

+ANGINGLOGISTISLANDSA!EININDIA..................................................................

T+IRD!ART#LOGISTIS...............................................................................................

TRANSPORTATION AND LOGISTICS.................................................

AS!ETSO,TRANS!ORT................................................................................................

*ODESANDATEGORIES...............................................................................................

LOGISTICS INFRASTRUCTURE IN INDIA:.......................................

ABOUT BLR...............................................................................................

+ISTOR#$........................................................................................................................

COMPANY PROFILE:..............................................................................

ORGANIZATION STRUCTURE.............................................................

SERVICES OFFERED BY BLR...............................................................

TRANS!ORTATIONSOL"TIONS$.......................................................................................

WARE+O"SING& DISTRI)"TIONSOL"TIONS...............................................................


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INTERNATIONAL,REIG+T*ANAGE*ENT......................................................................

MARKETING MIX OF BLR....................................................................

!ROD"T........................................................................................................................

!RIE..............................................................................................................................

!LAE.............................................................................................................................

!RO*OTION....................................................................................................................

!EO!LE...........................................................................................................................

!ROESS.........................................................................................................................

INFRASTRUCTURE OF BLR..................................................................

)LR O,,IENETWOR-.................................................................................................

OR!ORATEO,,IE........................................................................................................

)LR ,LEET.....................................................................................................................

)ONDEDWARE+O"SES..................................................................................................

GENERALWARE+O"SES................................................................................................

)ONDEDTR"-ING........................................................................................................

)LR IT A!AIT#..........................................................................................................

"ALIT#AT )LR...........................................................................................................

MARKETING DEPARTMENT STRUCTURE.......................................

CLIENTS OF BLR......................................................................................

AWARDS AND ACHIEVEMENTS:.........................................................

SWOT ANALYSIS......................................................................................

SWOT ANALYSIS OF BLR.......................................................................

STRENGT+S....................................................................................................................


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WEA-NESSES.................................................................................................................

O!!ORT"NITIES..............................................................................................................

T+REATS.........................................................................................................................

PROBLEMS /CHALLENGES OF INDUSTRY;.....................................

CONCLUSIONS AND RECOMMENDATIONS....................................

ONL"SION..................................................................................................................

REO**ENDATIONS/S"GGESTIONS...............................................................................

BIBLIOGRAPHY & WEBILIOGRAPHY...............................................


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L%0%$$%'- '( $1" )$*+,

This study is 1i4ited to BLR I-+% P%$" L$+.

This study is specia11y re1ated 7ith 4ar8eting 4anage4ent in

particu1ar

This study is presented on the 5asis o0 in0or4ation and 8no71edge

7hich cou1d 5e gained during the course o0 SI! at BLR I-+% P%$"

L$+.

H,2'$1")%)

:shou1d 5e positi2e e.g. 7hether ;y9 has adopted princip1e o0 scienti0ic

4anage4ent


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R")"#1 M"$1'+'3'4,

To 4a8e this pro=ect t7o approaches are used pri4ary and secondary data.

P%0, D$: This in0or4ation is co11ected 5y inter2ie7ing those 7ho are 7or8ing

in 0or the 1ogistics and transportation industry.

S"#'-+, D$: This data is co11ected 0ro4 2arious sources such as internet3

di00erent 5oo8s3 ne7spapers and 4aga9ines on 1ogistics and transportation industry.

Sa4p1e

State4ent and signi0icance :o0 product and co4pany


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I-$'+*#$%'-:

Overview

The ter4 1ogistics is o0ten 4isinterpreted to 4ean transportation. In 0act3 the

scope o0 1ogistics goes 7e11 5eyond transportation. Logistics 0or4s the syste4 that

ensures the de1i2ery o0 the product in the entire supp1y pipe1ine. This inc1udes

transportation3 pac8aging3 storage and hand1ing 4ethods3 and in0or4ation 01o7.

The industria1 po1icies in India ha2e pro4pted 4anu0acturers to 5ui1d p1ants in

re4ote3 5ac87ard areas due to ine;pensi2e 1and and ta; 5ene0its. This poses so4e

serious 1ogistica1 pro51e4s. Apart 0ro4 a poor road and transportation net7or83 the

e;isting co44unications syste4 in India 1ea2es a 1ot to 5e desired 5y any

internationa1 standard. It is in this conte;t that 1ogistics has to 5e considered in India.

Logistics ca11 0or an understanding o0 the tota1 supp1y chain3 the e1e4ents o0

7hich inc1ude in2entories3 pac8ing3 0or7arding3 0reight3 storage and hand1ing.

Logistics is responsi51e 0or a11 the 4o2e4ent that ta8es p1ace 7ithin the organi9ation

7hether it is in5ound 1ogistics o0 inco4ing3 ra7 4ateria1s or 4o2e4ent 7ithin the

co4pany or the physica1 distri5ution o0 0inished goods3 1ogistics enco4passes a11 o0

these.

Typica1 1ogistics 0ra4e7or8 4ain1y consists o0 !hysica1 Supp1y3 Interna1

Operations and !hysica1 Distri5ution o0 Goods and Ser2ices. To put it 4ore si4p1y3the 4ateria1 supp1y 1ogistics starts 0ro4 the 5ase 1e2e1 o0 >generation o0 the de4and?3

through the >process o0 purchase? and >supp1y o0 4ateria1 0ro4 the 2endor? right

through to >0ina1 acceptance? and >pay4ents to the supp1ier? and >issue to the

indenter? and has to 5e considered as a >one 7ho1e acti2ity? 7ith each stage ha2ing

an i4pact on price/cost o0 4ateria1 supp1y.


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Logistics is3 in itse103 a syste4@ it is a net7or8 o0 re1ated acti2ities 7ith the

purpose o0 4anaging the order1y 01o7 o0 4ateria1 and personne1 7ithin the 1ogistics

channe1.

Tra2e1 and Transportation 0or4s the 5ac85one o0 in0rastructure 6 the 4a=or

sector o0 any econo4y. *i11ions o0 peop1e and 5usinesses re1y on an e;tensi2e3 inter

re1ated net7or8. The transportation industry is in an era o0 unprecedented change.

*ar8ed 5y unending de4ands 0or increased ser2ices and se2ere1y 1i4ited 5udgets 0or

in0rastructure3 the industry 0aces continuous cha11enges. The tra2e1 industry is

e;p1oring ne7 hori9ons in the 7ay it does 5usiness3 than8s to techno1ogy. Today3 7ith

the he1p o0 techno1ogy the tra2e1 industry is creating ne7 propositions 0or its

custo4ers on1ine 5oo8ing3 re4ote tra2e1 4anage4ent3 and ne7 age R* progra4s.

On the other hand3 B!L and Logistics pro2ider industry that is hea2i1y

dependant on in0rastructure set 5y transportation has 5een e45ryonic to o00er greater

scope and 4ore co4p1e; so1utions. E;pansion o0 net7or8s through rapid

g1o5a1i9ation 7ith 4ergers and acCuisitions a4ongst 1ogistics pro2iders and need to

0u10i11 co4p1e; g1o5a1 contracts ca11s 0or higher per0or4ance through greater and

deeper endtoend integration and state o0 the art 2isi5i1ity too1s. The under1ying

o5=ecti2e is3 sea41ess 01o7 o0 in0or4ation across the co4p1e; and gro7ing 2a1ue

chains3 1eading to e00ecti2e and 0aster decision 4a8ing 7hich in turn 1eads to 5etter

transparency and 2isi5i1ity.


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The Logistics & Transportation Industry

G1o5a11y3 the 1ogistics industry is 2a1ued at "S% B.( tri11ion.

The ".S.3 7hich contri5utes to o2er '( o0 the g1o5a1 industry 2a1ue3 spends

c1ose to o0 its GD! on 1ogistic ser2ices.

The Indian Logistics Industry is present1y esti4ated at "S% F 5i11ion.

The industry has generated e4p1oy4ent 0or ( 4i11ion peop1ein the country in

co4parison 7ith the IT and ITeS sector 7hich e4p1oys appro;i4ate1y .B

4i11ion peop1e.

It is 0orecast to gro7 at a o4pound Annua1 Gro7th Rate :AGR< o0

appro;i4ate1y Ho2er the ne;t three to 0i2e years.

Third !arty Logistics :B!L< So1utions3 is s1ated to gro7 at a co4pound annua1

gro7th rate :AGR< o0 o2er 0ro4 'FFJF. onseCuent1y3B!L ser2ice

pro2iders are e;pected to corner an increased share o0 the Indian Logistics pie3

0ro4 in the year 'FF to B in the year 'F3 at a AGR o0 '(

The pri4ary gro7th dri2ers o0 this industry are as under$

In2est4ents in the in0rastructure sector a4ounting to "S% B(F 5i11ion

Increased e00iciency and producti2ity o0 the transport syste4 7ou1d resu1t in 1o7er

transit ti4es.

Strea41ining o0 the indirect ta; structure$

The introduction o0 Va1ue Added Ta; :VAT< and the proposed introduction o0 a

singu1ar Goods and Ser2ices Ta; :GST< are e;pected to signi0icant1y reduce the

nu45er o0 7arehouses 4anu0acturers are reCuired to 4aintain in di00erent states3

there5y resu1ting in a su5stantia1 increase in de4and 0or integrated 1ogistics

so1utions.


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Ro5ust trade gro7th

Strong econo4ic gro7th and 1i5era1i9ation ha2e 1ed to considera51e increase in

do4estic and internationa1 trade 2o1u4es o2er the past 0i2e years. onseCuent1y3

the reCuire4ent 0or transportation3 hand1ing and 7arehousing is gro7ing at a

ro5ust pace and is dri2ing the de4and 0or integrated 1ogistics so1utions.

G1o5a1i9ation o0 4anu0acturing syste4s

G1o5a1i9ation o0 4anu0acturing syste4s coup1ed 7ith ad2ance4ents in

techno1ogy are increasing1y co4pe11ing co4panies across 2ertica1s to concentrateon their core co4petencies and a2ai1 the cost sa2ing potentia1 o0 outsourcing. This

is e;pected to contri5ute to an increase in the need 0or integrated 1ogistic

so1utions3 7hich is the niche o0 e2ery


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India Logistics& Transportation Industry: $125 BillionGoldmine

IndiaKs 1ogistics 4ar8et is a11 set to e;perience a period o0 e;p1osi2e organic

gro7th3 =udging 5y independent 4ar8et ana1yst Data4onitorKs 1atest research. The

Data4onitor report3 India Logistics Out1oo8 'FFJ'FFH predicts high dou51edigit

gro7th rates 0or 5oth outsourced and contract 1ogistics in India.

With IndiaKs gross do4estic pro0it :GD!< gro7ing at o2er per year and the

4anu0acturing sector en=oying dou51e digit gro7th rates3 the Indian 1ogistics industry

is at an in01ection point3 and is e;pected to reach a 4ar8et si9e o0 o2er %'( 5i11ion in

year 'FF.

Strong gro7th ena51ers e;ist in India today in the 0or4 o0 o2er %BFF 5i11ion

7orth o0 in0rastructure in2est4ents3 phased introduction o0 2a1ueaddedta; :VAT


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With increased geographica1 distri5ution o0 inco4es in India3 the consu4er

4ar8ets are e;tending 5eyond the 0i2e 4etros o0 *u45ai3 De1hi3 )anga1ore3 hennai

and +ydera5ad. +o7e2er3 rather than 5eing pree4pti2e3 the co4panies are on1y

0o11o7ing 7ith ne7 distri5ution out1ets. As such3 the increased co4petition across

industry 2ertica1s is 0orcing 0ir4s to 0ocus on product distri5ution3 and 1ogistics

outsourcing is gaining 0urther 4o4entu4 7ith this.

At =ust a5o2e oneCuarter o0 the entire %F 5i11ion Indian 1ogistics 4ar8et3 is

s1ated to gro7 at a co4pound annua1 gro7th rate :AGR< o0 o2er 0ro4 'FFJF.


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Industry cenario:

The recent econo4ic changes are proo0 enough to esta51ish India as ane2o12ing super po7er. The se2enth1argest nation in ter4s o0 geographica1 area and a

pro4inent 0orce a4ong e4erging countries in ter4s o0 techno1ogy and in0rastructure3

India is no7 7e11 ahead on the gro7ing cur2e o0 the 7or1d econo4y

In 7a8e o0 this3 India is 7itnessing a renaissance o0 sorts across a11 sectors3

especia11y 4anu0acturing3 te1eco44unications3 retai1 and ser2ices3 as g1o5a1 as 7e11 as

1oca1 p1ayers con2erge to cater to the 7or1dMs 5iggest 4ar8etp1ace and consu4er

co44unity. As India surges ahead on trans0or4ing itse10 0ro4 a de2e1opingM nation to

a de2e1opedM state3 one o0 the core sectors that is a crucia1 part o0 an up7ard s7ing is

1ogistics.

As 5ig 4oney gets pu4ped into 4anu0acturing and other gro7thcentric

sectors3 especia11y retai1 6the ro1e and potentia1 o0 1ogistics co4panies is on the

ups7ing as crucia1 5usiness operations 1i8e supp1y chain 4anage4ent and contract

1ogistics 5eco4e 8ey issues o0 4anaging the titanic surge in nationa1 5usiness3 5oth1oca11y3 nationa11y and g1o5a11y.

As 4ore and 4ore organi9ations thin8 and act >g1o5a1?3 it is ti4e 0or third

party 1ogistics ser2ice pro2iders to 0o11o7 suit 5y esta51ishing net7or8s and 1ogistics

in0rastructure across Asia.

On the 1ogistics 0ront3 India has pic8ed up good 4o4entu4 o2er the 1ast

decade. With an esti4ated 4ar8et 7orth Rs. 'F3FFF crores3 the industry contri5utes

B per cent to the nationa1 GD!.


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!"anging logistics landscape in IndiaIndia is a1ready a hea2y7eight g1o5a11y in the ser2ices sector. *anu0acturing

sti11 4a8es up on1y a re1ati2e1y s4a11 proportion o0 GD!a5out 'F per cent

co4pared to hinaKs ( per cent5ut it is gro7ing3 5oth in ter4s o0 do4estic 0ocus

and e;ports. IndiaKs container trade has 5een gro7ing at around ( per cent o2er the

past 0i2e years. That 4eans the 1ogistics ser2ices 5usiness 7i11 5e gro7ing at a

4u1tip1e o0 the 5o; trade3 pro5a51y around 'F per cent and 4ore per year. The gro7th

in de4and presents signi0icant opportunities 0or the 1ogistics industry3 as a1so

cha11enges.

Loo8ing ahead3 India is going to p1ay an increasing1y i4portant ro1e in dri2ing

7or1d econo4ic trade3 4ay5e e2en ri2a1ing the pheno4ena1 gro7th and

trans0or4ation o0 hina a 4anu0acturing superpo7er.

IndiaKs current trade pro0i1e pro2ides i4portant c1ues a5out the de2e1op4ent o0

1ogistics industry

In India the 1ogistics costs are sti11 higher than in the de2e1oped 4ar8ets. Thetransportation cost accounts 0or near1y F per cent o0 the cost o0 production3 7ith

4ore than ha10 the goods in India 5eing 4o2ed 5y road.

G2) $1$ I-+% P')$ #- (%33

Li4ited presence o0 operators in rura1 and se4iur5an areas that are gro7ing

4ar8ets

Lac8 o0 door to door ser2ice

Lac8 o0 a nationa1 1e2e1 integrated ser2ice pro2ider3 and

E;istence o0 4u1tip1e contact points 1i8e 0reight 0or7arders3 aggregators3

transport agents3 4u1tip1e transporters.


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T"ird #arty LogisticsTo put si4p1y3 B!L :Third !arty Logistics< re0ers to the outsourcing o0 a

1ogistics 0unction. It cou1d 5e the use o0 a transportation carrier3 a 7arehouse3 or a

third party 0reight 4anager to per0or4 a11 or part o0 a co4panyMs production

distri5ution 0unctions.

The industry has 5een at the recei2ing end o0 increasing interest 0ro4 the

pri2ate eCuity sector. The year 'FFJ 7itnessed =ust under "S% 5i11ion in pri2ate

eCuity in2est4ents in this industry3 representing appro;i4ate1y J o0 tota1 pri2ate

eCuity in2est4ents during the year3 against B in the pre2ious year

T1" 2%-#%23" ")'-) '( (' $1%) (*-#$%'- " ) *-+":

P G1o5a1i9ation o0 sourcing3 4anu0acturing and distri5ution 1eading to an

increase in the co4p1e;ity o0 4ateria1 4o2e4ent.

P o4petition that has 0orced co4panies to7ards 4ore responsi2eness and a

reduction in in2entories. An increased need 0or s4a11 5ut 0reCuent ship4ents

7ith FF percent re1ia5i1ity3 reCuiring core co4petence in 1ogistics4anage4ent.

P Resource constraints that reCuire co4panies to concentrate on1y on their core

4anu0acturing or ne7 product de2e1op4ent acti2ities

The Indian 1ogistics industry is characteri9ed 5y do4inance o0 a disorgani9ed

4ar8et. Transporters 7ith 01eets s4a11er than 0i2e truc8s account 0or o2er t7othirdso0 the tota1 truc8s o7ned and operated in India and 4a8e up HF o0 re2enues. The

0reight 0or7arding seg4ent is a1so represented 5y thousands o0 s4a11 custo4s 5ro8ers

and c1earing & 0or7arding agents3 7ho cater to 1oca1 cargo reCuire4ents.

In order to reduce 1ogistics costs and 0ocus on core co4petencies3 Indian

co4panies across 2ertica1s are no7 increasing1y see8ing and using the ser2ices o0

thirdparty 1ogistics ser2ice pro2iders :B!Ls


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T-)2'$$%'- A-+ L'4%)$%#)

TRANSPORTATION : T-)2'$$%'- is the 4o2e4ent o0 peop1e and

goods 0ro4 one p1ace to another. The ter4 is deri2ed 0ro4 the Latin trans :across

18045672 logistics and transportation industry in india

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