‘In­dian lo­gis­tics to grow 8-10% over medium-term’

Cargo Talk - - Domestic News -

With in­dus­trial out­put and con­sump­tion-driven sec­tors re­cov­er­ing in H2 FY2018 from the ini­tial lull post GST im­ple­men­ta­tion, the freight de­mand in the coun­try has also re­ported healthy pickup dur­ing the sec­ond half of the pre­vi­ous fis­cal, states ICRA. ICRA main­tains a sta­ble out­look for the In­dian lo­gis­tics in­dus­try, ex­pect­ing it to grow at 8-10 per cent over the medium-term.

Shamsher De­wan, Vice Pres­i­dent & Sec­tor Head – Cor­po­rate Rat­ings, ICRA, says, “From an ag­gre­gate rev­enue growth of only 4.6 per cent in Q2 FY2018, the sam­ple’s growth gained pace to 10.8 per cent in Q4 FY2018, as freight vol­umes picked up. ICRA es­ti­mates that there have been sav­ings as high as 18-20 per cent in the truck turn­around time post the im­ple­men­ta­tion of GST, sup­ported by elim­i­na­tion of in­ter-state check posts.” The de­mand growth would con­tinue to be buoyed by pickup in in­dus­trial ac­tiv­ity and con­sump­tion-led sec­tors, while in­creas­ing pref­er­ence for out­sourc­ing lo­gis­tics ac­tiv­i­ties would pro­vide fur­ther im­pe­tus to or­gan­ised play­ers. Ad­di­tion­ally, sup­ply-side fac­tors like im­prove­ment in lo­gis­tics in­fra­struc­ture and emer­gence of lo­gis­tics start-ups would of­fer fur­ther im­pe­tus to growth. “The im­ple­men­ta­tion of e-Way Bill from April 2018 has also been re­ceived pos­i­tively by the trans­porter com­mu­nity, with op­er­a­tional ef­fi­cien­cies and time sav­ings re­alised on ac­count of the same. Com­pa­nies are also in­ter­act­ing with sup­ply chain man­age­ment busi­ness op­er­a­tors in or­der to ex­plore op­por­tu­ni­ties to re­design their ware­hous­ing net­work,” adds De­wan.

Shamsher De­wan Vice Pres­i­dent & Sec­tor Head – Cor­po­rate Rat­ings, ICRA

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