The exponential growth of logistics sector in India
The valuation of Indian logistics sector is expected to grow to ~ $330 billion in the next 3 years. The massive growth potential of this sector has opened up numerous opportunities and as a result, the expectations from the logistics sector are at an all time high.
In this blog, we have interviewed Biman Debnath, Director — Operations at LoadShare Networks on what the opportunities/ challenges he foresees in this sector and how is LoadShare contributing to the growth of this sector. Following are the excerpts -
What do we expect from the logistics sector in 2022?
2022 will see a major push towards green logistics to reduce environmental impact. Fast evolving consumer demands, where the speed of delivery is of utmost importance will lead to emergence of new age tech-driven operators in this space which will transform the face of the industry.
What are the new opportunities in this sector?
The Indian logistics sector is currently valued at ~$260 billion and will grow at 8% CAGR to ~ $330 billion by 2025. This means growth across all of its sub sectors.
Focus will be on multi-modal transportation, increased service integration, warehousing capacity, development of support infrastructure that improves connectivity and faster turnaround will provide opportunities not only to the logistics industry but also allied industries.
What are the challenges we foresee in the logistics sector?
Rising fuel costs will invariably put a lot of stress on the margins this year. The industry needs to think about alternatives to solve this problem and minimize the ever growing cost pressure the industry undergoes.
How will LoadShare help in the growth of this sector?
Backed by the latest technology, a strong and capable operations team, deep penetration across regional markets and experience across various operations processes ranging from traditional e-commerce logistics to super dynamic hyper-local and on-demand logistics, LoadShare has built the agility to tailor clients’ requirements and solve their most pressing problems.
To address environmental concerns as well as ever increasing costs, the company also has plans to ramp up electrification of its fleet in a big way. We definitely seem to be well poised to take the lead in the overall growth of the industry.