Analysis Srinath Manda manages the Transportation and Logistics research and consulting practice of Frost & Sullivan for Middle East, North Africa and South Asia region. He is responsible for planning, executing and delivering client-defined consulting engagements and strategic market reports. He has worked on various market consulting projects in the transportation and logistics sector involving, market analysis, competitive benchmarking, market mapping, and end-user analysis. Some of the key assignments include market entry strategy, market penetration and expansion strategy, new product acceptance, assessments, location analysis and recommendation, industry benchmarking along with customer needs and satisfaction studies. He has also authored several strategic market reports covering the Transportation and Logistics markets in Middle East, North Africa and South Asia region. He has closely worked with leading domestic and international clients like APL, FedEx, IFC, Allcargo, Infosys, Hitachi, 20 Cube, and MJ Logistics among others covering the transportation and logistics markets. In addition to the MENASA transportation and logistics market, Srinath has also worked on research and consulting assignments for regions like ASEAN, China, Japan and Australia. Prior to joining Frost & Sullivan, Srinath was a Project Manager with a managementconsulting firm. With over 11 years of industry experience, Srinath brings a strong understanding of market, economic and business dynamics. Shipping, Varun Shipping, and Shreyas Shipping among others. Private logistics service providers, including dedicated cargo service providers such as Blue Dart, GATI, and AFL, as well as private airline operators such as Jet Airways, Kingfisher, and Indigo Air dominate the air cargo transportation market. Key Growth Opportunities in the Indian Logistics Market Rising Need for Integrated International Logistics Solutions LSPs operating in India have significant global growth opportunities, considering the rapidlyrising international trade volumes of the country. Moreover, the steadily-expanding domestic market for various industries ranging from consumer products and food products, to automotive, telecom, and electronics, is expected to maintain the Indian landscape as an attractive destination for several multinational LSPs seeking longterm growth. With key manufacturing industries such as automotive, engineering, pharmaceuticals, and food processing increasingly expanding their orientation towards global markets, LSPs serving companies in these industries are expected to witness substantial increase in revenues. Improving bilateral trade relations of India with all leading global economies (US, China, France, Russia, among others) is also expected to provide more growth opportunities for the logistics sector in India. Increasing Adoption of Logistics Technologies As of 2011, only about two-thirds of end users reported using some form of technology solution to support their logistics functions. These solutions included basic inventory management packages and barcode systems. However, usage of exclusive logistics technologies such as WMS, TMS, and Radio Frequency Identification (RFID) is significantly low across industries. Frost & Sullivan estimates that the Indian logistics technology market is expected to grow at about 19 per cent between 2011 and 2015, to cross USD $ 600 million by 2015. This growth is expected to be driven by demand from the thriving logistics, retail, and manufacturing sectors, as well as Government backing. Conclusions and Outlook India was among the five fastestgrowing economies in the world in 2011. Though the economic growth slowed down in 2012, it is expected to gain pace from 2013 and the positive trend is likely to sustain in coming years. As a result, India’s logistics sector offers immense growth potential in fulfilling the rapidly-rising needs of industries for both domestic distributions as well as to reach out to targeted international markets. The logistics market is expected to cross the USD $ 200 billion figure by 2020, fueled by the consistent growth of the nation’s economy and key industries such as automotive, engineering, pharmaceuticals, and food processing. The freight forwarding market holds strong potential due to anticipated growth of exports by most industries. Increasing availability of alternate modes of transport like dedicated railway freight corridors, and development of coastal shipping infrastructural facilities are expected to enhance the transportation sector in India in the next few years. The Government’s supportive measures such as development of special warehousing zones and logistics parks and large nationwide facilities for agricproduce and food products storage are expected to gain pace. These would aid efficient warehousing practices and drive down warehousing costs. Greater association between LSPs and end users in form of collaboration to address certain common issues is definitely desired in future to enhance the mutual trust factor. This would augment effective functioning of the logistics industry and improve efficiencies for end users in coming years. 18 February 2013
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