Indian Third Party Logistics (3PL) Market:

Trends & Opportunities [2013-18]

Third party Logistics Market - India

Scope of the Report
The report titled Indian Third Party logistics (3PL) Market: Trends & Opportunities (2013-18) analyzes the
sizing and growth of the 3PL market and also presents the market size and projects its future growth rate. The
major trends observed in the Indian 3PL market have been assessed in this report. The growth of the Indian
logistics sector, the spread of cold chain storages across India and PE investments in the logistics sector have
also been analyzed in the report. The report further discusses various factors driving the Indian 3PL market in
addition to profiling the major companies operating in this market along with their business strategies and
expansion plans.

Company Coverage
Gati Logistics
Transport Corporation of India Limited (TCI)
Container Corporation of India Limited (CONCOR)
Allcargo Logistics Limited
Aegis Logistics Limited


Executive Summary

With the consistent growth of the automotive, consumer retail, healthcare and other major industries, which
depend on the services of third-party logistics (3PLs) to source and distribute their products and raw materials,
the Indian 3PL market holds immense potential in the overall logistics industry. There have been some positive
improvements in the logistics infrastructure in the recent past enabling the 3PL providers to offer integrated
transportation and warehousing services and have better control and deliver better services.

The key trigger for the growth of 3PL market in India could be the introduction of Goods and Service Tax
(GST). Currently the tax structure in India is very complex which requires manufacturers to pay a number of
taxes; however, the introduction of GST is likely to reduce this tax burden. A number of factors that contribute
to the market growth include rapid globalization, 100% FDI in cold chain segment and private equity
investment. With the advent of foreign direct investment (FDI) in the retail sector in India, the logistics market
is projected to register its positive effects in the long run. However, this market is faced with a number of
challenges in the form of lack of transparency between 3PL providers and customers, and the different
business processes followed by different industries.
Third party Logistics Market - India
Indian Third Party Logistics Market size: overview







Indian Third party logistics market has been consistent over the past few years, but it is
expected to show a tremendous change in the next few years. Growth of the sector is backed
by investment in infrastructure, globalization of manufacturing systems.







M


















Indian 3PL Market, 2008-12E (US$ Billion)
Indian 3PL Market Forecast,
2013-18 (US$ Billion)
Market size of Indian third party logistics industry in 2018 is expected to reach to
US$..billion from US$ billion in 2012 by growing at a CAGR of%.
Growth in the industry is due to trade growth, investment.
2010 2011 2012E

2013E 2014E 2015E 2016E 2017E 2018E
Indian Third Party logistics Market Share

Current Share of organized logistics
player in the market is. and it is
expected to reach. With a CAGR
of.
2013E 2020E
FY14E FY15E FY16E FY17E FY18E
Market size of Indian logistics
industry in 2018 is expected to
reach to US$..billion from US$
billion in 2012 by growing at a
CAGR of%.
Share of organized logistics players in
2013 vs 2020
M
Indian Logistics Market Size Forecast,
2013-18 (US$ Billion)















Indian 3PL Market, 2008-12E (US$
Billion)
Market Trends
Technological advancement
.

.



..




Warehouses- adding value to the
system

.

.



..

PE investment in logistics segment
.

.



..



Table of Contents
1. Executive Summary

2. 3PL Market: An Overview
2.1 Segments of 3PL
2.1.1 Transportation
2.1.2 Warehousing
2.1.3 Cross docking
2.1.4 Inventory management
2.1.5 Packaging
2.1.6 Freight forward
2.2 Classification of 3PL
2.2.1 Standard 3PL Provider
2.2.2 Service Developer
2.2.3 The Customer Adapter
2.2.4 The Customer Developer
2.3 Advantages of using Third Party Logistics

3. Indian 3PL Market: Sizing and Growth
3.1 3PL Usage in India
3.2 Indian Logistics Market Size
3.2.1 Expenditure on Logistics
3.3Indian 3PL Market Size
3.3.1 Penetration of 3PL in key countries
3.4 Cold Chain Storage Market of India
3.5 Market Share Analysis: Indian 3PL market
3.5.1 By Competitors
3.6 Market Share of Logistics Market
3.6.1 Logistics spending structure
3.6.2 Structure of Outsourced Logistics
3.6.3 Share of organized logistics players
3.6.4 Elements of Logistics cost
3.6.5 Share of Logistics cost (as percentage) in GDP of
different economies
3.6.6 By share of logistics cost in total sale of different
Industries

4. Market Dynamics
4.1 Growth drivers
4.1.1 Increase in Demand for Cold chain storage
4.1.2 Investment in the Infrastructure Sector
4.1.3 Robust trade Growth
4.1.4 Globalization of Manufacturing Systems
4.1.5 Entry of Indian blue chip companies in Retail
4.1.6 Streamlining of Tax Structure
4.1.7 FDI in Retail
Table of Contents
4.2 Challenges of 3PL
4.2.1 Inadequate infrastructure
4.2.2 Lack of Openness between 3PL Providers and
Customers
4.2.3 Multiplicity of Manufacturing Location
4.2.4 Providing Services in Varied Business Verticals
4.3 Trends in 3PL
4.3.1 PE investment in logistics segment
4.3.2 Other Companies Entering in the Logistics Market
4.3.3 Technological Advancement
4.3.4 Warehouses- adding value to the system

5. Competitive Landscape
6. Company Profiles

6.1 GATI Limited
6.1.1 Business overview
6.1.2 Financial overview
6.1.3Business Strategy

6.2 Transport Corporation of India Limited (TCI)
6.2.1 Business overview
6.2.2 Financial overview
6.2.3Business strategy

6.3 Container Corporation of India Limited (CONCOR)
6.3.1 Business overview
6.3.2 Financial overview
6.3.3 Business strategies

6.4 Allcargo Logistics Limited
6.4.1 Business overview
6.4.2 Financial overview
6.4.3 Business strategies

6.5 Aegis Logistics Ltd
6.5.1Business overview
6.5.2 Financial overview
6.5.3 Business strategies
List of Charts
Figure 1: Relationship of 3PL provider with Manufacturer, Supplier and Buyer
Figure 2: Segments of 3PL Market
Figure 3: Users of 3PL in India
Figure 4: Market Size of Indian Logistics Market, FY10- FY13E (US$ Billions)
Figure 5: Indian Logistics Market Size Forecast, FY14-FY18 (US$ Billions)
Figure 6: Forecasted Expenditure on Logistics Cost in India, 2013-18 (US$ Billions)
Figure 7: Market Size of Indian 3PL Market, 2008-12E (US$ Billions)
Figure 8: Indian 3PL Market Size Forecast, 2013-18 (US$ Billions)
Figure 9: Penetration of 3PL Market in Key Countries, 2012-13
Figure 10: Market Size of Indian Cold Chain Storage Market, 2009-12 (US$ Billions)
Figure 11: Indian Cold Chain Storage Market Size Forecast, 2013-18 (US$ Billions)
Figure 12: Revenue of different 3PL Provider Companies in India, FY 2012-13 (US$ Billions)
Figure 13: Logistics Spending Structure of India; In-house and Outsourced Logistics, 2012-13
Figure 14: Structure (Percentage share) of Outsourced Logistics in India, 2012-13
Figure 15: Market Share of Organized Logistics Players in India, FY 13E and FY 20E
Figure 16: Percentage Share of Elements of Logistics Cost in India, 2012-13
Figure 17: Percentage Share of Logistics cost in Total Sales of Different Industries, 2012-13
Figure 18: Distribution of Cold Chain Capacity by Commodity, 2011
Figure 19: Share of PE Investment in Logistics Segment in India, FY 2011-FY 2013YTD (US$ Million)

Table 1: Share of Logistics Cost Globally and the Share of 3PL, (2012-13)
Table 2: Logistics Cost of Different Countries
Table 3: Indian PE Investments in Logistics Market
Table 4: Companies under Organized Logistics Segment
Table 5: Major Companies Operating across the Market Segment
List of figures
Figure 20: Technological Advancement in Indian 3PL Market
Figure 21: Revenue of Gati Limited, FY 2010 - FY 2013E (US$ Billions)
Figure 22: Revenue of TCI, FY 2010- FY 13 (US$ Billions)
Figure 23: Revenue of CONCOR, FY 2010- FY 13 (US$ Billions)
Figure 24: Revenue of Allcargo Logistics Limited, FY 2011- FY 13 (US$ Billions)
Figure 25: Revenue of Aegis Logistics Limited, FY 2011- FY 13 (US$ Billions)