| Business User |
| Individual User |
Adverstisement
- Home
- Directory
- Products
- Trade Leads
-
- Quick Links
- Finance Zone
- IT Zone
- Trust Seal
- Biz-Accelerator
 |
Improved technology to help grow Indian Logistics sector
Friday, May 11, 2012
|
 |
CIL paves way for construction of freight corridors for coal transportation
Monday, May 07, 2012
|
 |
Logistics, key contributor to Indian economy
Wednesday, April 25, 2012
|
 |
Rise of India in global supply chain network
Tuesday, February 28, 2012
|
3PL biz to propel growth in the logistics sector |
|
Friday, October 02, 2009 |
|
As per estimates by the ASSOCHAM, the logistics industry will grow by about 17% over the next couple of years, which will be triggered by strong growth in the 3PL segment |
By Prasenjit Das
A recent estimate by the Associated Chambers of Commerce and Industry of India (ASSOCHAM) has given the domestic logistics industry a reason to rejoice. According to the knowledge chamber, the sector is poised to grow by about 17% over the next couple of years to touch US$125 billion from the current level of US$105 billion.
The ASSOCHAM has also added that the burgeoning third-party logistics (3PL) business in the country is going to play a major role in helping the logistics sector register the estimated growth over the next 2 years. The knowledge chamber expects the 3PL segment to become a US$90 million industry from the present size of US$58 million by 2012.
The estimates by ASSOCHAM have lifted the spirits among both small and big logistics companies. “The bright prospects of the sector certainly augur well for every player in the industry. Business in the sector suffered a jolt in wake of the global demand slump. Now, when logistics firms are on the path of recovery, such news is likely to motivate them further to expedite their revival,” said RD Bhargawa, CMD of Avignon Shipping Company, a mid-sized custom house agent in Pune.
Importance of 3PL services
The logistic industry is expected to get a huge boost from Value Added Tax (VAT), which is set to push India Inc increasingly towards availing 3PL services. The concept of 3PL, whereby a company outsources its logistics activities to a specialised logistics service operator instead of handling the same itself, was introduced in the US and Europe. More and more Indian companies are waking up to the significance of using 3PL services, which can enhance their efficiency by efficient logistic operations.
“With demand for 3PL services on a rise, logistics firms offering such services are on a high. The small and mid-sized entities in this segment, in particular, are benefitting immensely from this demand, as their volume of business is steadily growing,” said S Siddiqui, Partner with Vicky Trading Corporation, a small-scale logistics firm in Kolkata.
Given the robust growth of the 3PL sector, the projected growth of the logistics industry in the next 2 years seems to be on the cards. |
|
Rate this Article
|
Adverstisement
Search for articles
SEARCHED TAGS
Bizxchange on Facebook
Advertisement