Express Delivery Industry in India

8/8/2019 Express Delivery Industry in India

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E XPRESS D ELIVERY I NDUSTRY IN I NDIA An Analysis on Future Prospects and Challenges

By: Saras Pokhriyal


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A B ACKGROUND


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The past d ecad e witn ess ed a s ea ch ang es in t he way our economy b eh av es andconsum es. The fu el of lib era lization h as prop elle d may n ew s ec tors into ex ist en ce and

h as provid ed t he imp etus t h at many ot he rs r eq uir ed.The past d ecad e h as s ee n India transforming into a consum er bas ed economy.

Consum erism as a lways pav ed t he way for comp etition and wit h it t he bel ief t h atConsum er is t he KING.


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S o, w he t he r it was Q S CV, Custom er First or t he Custom er is t he King t he id ea was to k ee p t he end us er h appy by customizing so lutions for h im.S ec tors su ch as R e tai l, H ea lt h and W ell n ess, Hospita lity & T rav el ,

Automobi le , FMCG, BF S I to nam e a f ew und erstood t h at to h av e a s h ar e of voi ce in t he consum ers mind t he y n ee ded to b e as clos e as possib le to

t he consum er.


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H en ce t he r e was a n ee d for som e on e wh o cou ldbridg e t h is gap and bring t he two clos er.


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A n ee d for som eon e wh o cou ld r edu ce t he tim e of communi cation and hel p manufa ctur ers/mark e t ee rs

be pr esent at t he rig h t p la ce at t he rig h t tim e .


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H en ce , Logisti cs and supp ly ch ain b ec am e an int egra l part of ea ch andevery busin ess and t h us giving ris e to t he n ee d for sp ec ia lized p lay ers w h o

cou ld tak e car e of t he logisti ca l r eq uir em ents of t he organizations


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COURIER INDU S TRY : THE S TORY S O FAR


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The Indian dom esti c couri er industry stands at around INR 22 bn.in r evenu es and is sti ll at a v ery nas cent stag e.It is a v ery disint egrat ed industry wit h around 2300 p lay ers of

wh ich 20 ar e major p lay ers wit h nationa l pr esen ce 2000 ar e in t he semi-organiz ed s ec tor and t he r est in t he unorganiz ed s ec tor.The organiz ed s ec tor gov erns n ear ly 90% of t he overa ll mark et.


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S ALIEN T F EA TURE S

The industry h as exh ibit ed a growt h of about 30% ov er t he

past four y ears and is ex pec t ed to grow at 25% for t he n ex t2 to 3 y ears.Int ernationa l ex pr ess cargo h olds 6% of t he ex pr ess cargoindustry, but is for ecast ed to r ea ch 40% by 2017.


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E XPRE SS DELIVERY INDU S TRY : THE NEX T B IGTHING


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E xpr ess es busin ess off er tim e- d efinit e del iv ery s ervi ce s Va lu ed at around INR 40 bn.Of t h is appro ximat el y INR 26 bn was g en erat ed by t he unorganiz ed s ec tor.E xpec t ed to grow at t he 20% CAGR ov er t he n ex t 5 y earsThe bu lk busin ess is dominat ed by 24 h rs d el iv ery guarant ee and n ex t day d el iv ery.The E xpr ess Industry Coun cil of India proj ec ts t he industry

to grow at 20% every y ear.


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3PL M ARKE T : THE C A S H REGI S TER S


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The 3PL mark e t in India is at a v ery nas ce nt stag e .The mark e t is estimat ed at about U S D 890.3 mnThe growt h is driv en main ly by t he growt h in t he

Re tai l, FMCG, BF S I s ec tors.E xpec t ed to grow at a CAGR of 21.9% to tou ch U S D3556.7 mn by 2012.


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COURIER INDU S TRY K EY DRIVER S OF GROW TH

E conomi c growt h driving d emand for logisti ca l so lutions.In cr eas ed Outsour cing k ey driv e r for logisti csso lutions

VA T imp le m entations to driv e furt he r growt h in t he industry


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COURIER INDU S TRY : C HANGING INDU S TRY D YNAMIC S

Services Today FutureConsignm entT ra cking

T ra ck & T ra ce GP S /GI S dynami c routing of industry

Logisti cs T ransportation Mov em ent S olution, manpow er,mon ey and mat eria l

Regu latory Comp lian ce Consu ltativ e + Comp lian ce

T ransportation T ru cking Bond ed: E xpr ess, T ru cking

War eh ousing S pa ce Provid er Dynami c engag em ent b e tw ee n sto ckand fu lfill m ent

Mat eria l Mov em ent Pi ck up & Drop off Pro cur em ent & Mov em ent


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THE CHALLENGE S

Dominan ce of larg e numb er of unorganiz ed compani esInfrastru ctur e ch ang es ess entia l to improv e efficien cies.Nationa l h igh ways constitut e on ly 1.9% of t he road

n e twork of t he country.The av e rag e sp ee d of on t he Indian roadways is about35 kmp h wh ich is mu ch bel ow g loba l av e rag e .Cost of op erations


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Put Industry S WO T t h at w e dis cuss ed he r e .


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K EY P LAYER S

RoadExpress

AirExpress

CourierIndustry

WarehousingIndustry

TruckingIndustry

3PLServices

Gati Gati B lu edart E xcel Logisti cs D elh i AssamRoadway

E xcel

S af eex pr ess S af eex pr ess Firstf ligh t AFL Pat el Roadways Ba x G loba l

TN T (S pee dag e)

B lu edart AFL Om Logisti cs S em Corp

TCI D TDC CWC Pana lpina

Ov ernit e S af ex Geo Logisti cs

Prof essiona l Couri er

DHL


20/21


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B lu e Dart E xpr ess Ltd is t he mark e t le ad er wit h 36% mark e t s h ar e in t he dom esti c mark e t.B lu e Dart is t he on ly ex pr ess

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Express Delivery Industry in India