Analysis of the logistics services market in India
The relevance of research
Logistics is a science that studies the planning, management and control of warehousing, delivery, movement of material flows in the process of delivery, processing and bringing finished products to the buyer. The main task of logistics is planning the optimal territorial (or geographical) placement of the required materials and raw materials to meet the needs for them and for the smooth operation of organizations.
Purpose of the study
Analysis of the state of the logistics services market in India, assessment of the market size, analysis of competitors, as well as identification of factors affecting the logistics services market
Content
Part 1. Overview of the Indian market of transport and logistics services
1.1. Definition and Characteristics of the Indian Transportation and Logistics Market
1.2. Dynamics of the volume of the Indian market of transport and logistics services, 2017-2021
1.3. Market structure by type of service provided in India
1.4. Structure of the market of transport and logistics services in the Union Territories
1.5. Assessment of current trends and development prospects of the studied market
1.6. Assessment of factors affecting the market
1.7. Analysis of sectoral indicators of financial and economic activity
Part 2. Competitive analysis in the market of transport and logistics services in India
2.1. Major players in the market
2.2. Market shares of the largest competitors
2.3. Profiles of major players
Part 3. Analysis of the consumption of transport and logistics services
3.1. Estimation of the volume of consumption of transport and logistics services per capita
3.2. Market Saturation and Estimated Market Potential in India
3.3. Description of consumer preferences
3.4. Price analysis
Part 4. Assessment of factors of investment attractiveness of the market
Part 5. Forecast for the development of the transport and logistics services market until 2026
Part 6. Conclusions on the prospects of creating enterprises in the study area and recommendations for current market operators
Research excerpt
Part 1. Overview of the Indian market of transport and logistics services
1.1. Definition and Characteristics of the Indian Transportation and Logistics Market
Logistics is a science that studies the planning, management and control of warehousing, delivery, movement ...
Logistics includes...
The main task of logistics is planning the optimal territorial (or geographical) placement of the required materials and raw materials to ensure ...
The high importance of the transport and logistics market is associated with …
For the first time the phrase ""transport logistics"" officially sounded in 1974 in Berlin at the European Congress. Then they formulated...
Today in India, the development of transport logistics is underway ...
The most important criteria for transport logistics are…
The Indian market of transport and logistics services is characterized by the following features:
...
At the same time, most of the services in the field of transportation, storage of goods, as well as inventory and supply chain management are performed by …
1.2. Dynamics of the volume of the Indian market of transport and logistics services, 2017–2021
During 2014–2019 The volume of the market of transport and logistics services in monetary terms is unchanged …, but since 2017 it has been noted ... Positive dynamics in 2014–2019. primarily due to an increase in...
Market experts note that before the outbreak of coronavirus, the possible growth of the commercial cargo transportation market could amount to … trillion Rs. in 2020, that is, approximately by …% per year. However, due to coronavirus restrictions, the market was in a state of … billion Rs. At the end of 2021, the market …
The main factor that preserved the TLU market was the development of …
Diagram 1. Volume of the transport and logistics services market, 2017–2021, billion Rs.
During 2017–2021 cargo turnover in India was practically in the state of … The maximum value was noted in 20… – … billion t-km. In 2019–2020 freight traffic in India...
Freight volume in India 2017-2021 was also in the state of ... Fluctuations in the values of the indicator did not exceed …%. At the end of 2020, the volume of cargo transportation amounted to … million tons, which is …% more than a year earlier.
1.3. Market structure by type of service provided in India
… differing both in the range of services and in the technological level.
Most Indian companies today are at … logistics service levels. Only a few...
The predominant part in the structure... Services are still in demand (second place in the overall structure of the logistics services market) - ...%. The share of … services accounts for about …%. Segment…
The main solution to the problem of bringing modern logistics companies closer to the level of world standards is to reach a new level …
1.4. Structure of the market of transport and logistics services in the Union Territories
In the market structure, the majority of transport and logistics services are accounted for by … Union Territories (…%), the second place in terms of the volume of services rendered is occupied by … Union Territories – …%. In third place - ... Union Territories (...%). The share of ... in total accounts for ...
Diagram 5. Structure of the transport and logistics services market in India by Union Territories, %
1.5. Assessment of current trends and development prospects of the studied market
Currently, experts identify the following trends and trends in the development of the transport and logistics services market:
...
The current situation in the world and in India at the beginning of 2020 contributed to the development of the following trends for 2020–2021:
...
1.6. Assessment of factors affecting the market
Let's consider the main factors influencing the market and, accordingly, demand.
- Social (demographic)
During 2012–2018 India's population is on the rise. The increase in the population in 2015 was not only due to migration and natural increase, but also …
In 2016–2021 there are negative values of natural growth, but despite this, the population of India increased until 2019 due to …, and in 2019 the population ... Since the beginning of 2020, the population has decreased by … thousand people (for the same period 2019 - ...), and in 2021 - by ... million people.
...
- Economic
- ...
- technological
- ...
- Political
- ...
In general, the impact of macro factors on the market of transport and logistics services can be assessed as ... Negative impact ...
Table 9. STEP-analysis of factors affecting the market of transport and logistics services
1.7. Analysis of sectoral indicators of financial and economic activity
Consider the financial and economic indicators for the industry ...
Gross margin
Gross margin is gross profit divided by sales revenue (excluding excise taxes and VAT).
Table 10. Gross margin of the transport and logistics services industry in comparison with all sectors of the Indian economy, 2017-2021, %
In 2021, a decrease in the values of the indicator was noted in such areas as: ... In other areas of TLU, the gross margin, on the contrary, increased. It should be noted that the gross profitability of the industry “…” was by … p.p. higher than in all sectors of the Indian economy.
- Return on profit
The indicator of profitability before tax at the end of 2021 showed a positive trend in ... In all other areas, …
- Current liquidity
- ...
- Absolute liquidity
- ...
- Business Activity Indices
- ...
- Financial stability
- ...
Part 2. Competitive analysis in the market of transport and logistics services in India
2.1. Major players in the market
The current level of competition in the TLU market is estimated as ... There are about ... thousand players on the market. The competition among the main market players continues ... And not only for customers, but also for highly qualified personnel. Coming to the fore…
...
The largest players in the market of transport and logistics services in 2021 are ... Together, these companies account for about ...% of the market.
2.2. Market shares of the largest competitors
As of 2021, OJSC “…” remains the largest operator of the transport and logistics services market in India, occupying …% of the market. The share of GC “…” accounts for …% of the TLU market. …
The calculation data of the Herfindahl-Hirschman Index in the transport and logistics services industry (Index = ...) show that this market belongs to ... markets (market concentration ...).
Diagram 13. Shares of the largest competitors in the market of transport and logistics services in 2021
2.3. Profiles of major players
JSC ""…""
...
Table 17. Basic information about the TLU market participant …
...
During 2017–2021 the revenue of the largest operators of the TLU market from the sale of this type of service grew within …%–…%. During the analyzed period, the revenue of TOP-5 companies of the TLU market increased by …%.
Part 3. Analysis of the consumption of transport and logistics services
3.1. Estimation of the volume of consumption of transport and logistics services per capita
During 2017–2021 the volume of consumption of transport and logistics services per capita is unchanged ... In 2015–2017. noted … growth rate of the indicator, and in 2018–2020. - ... According to the results of 2021, the volume of consumption amounted to … thousand Rs./person, which is …% more than in 2020 and by …% more than in 2017. The average annual growth rate was …%.
3.2. Market Saturation and Estimated Market Potential in India
...
The main task of marketing at this stage is ...
The promotion strategy should form ...
One of the main indicators of the development of the TLU market is the share of contract logistics companies …
The share of contract services in TLU in the Indian market …
...
3.3. Description of consumer preferences
The structure of commercial cargo transportation is dominated by transportation by … transport (…%) and … – …%. The share of other types of cargo transportation does not exceed …%.
At the same time, in the structure of commercial freight turnover, … transport accounts for …%, while … accounts for …%. This suggests that for long distances, the greatest demand is for …
In recent years, there has been a trend in changing the needs of customers in the domestic market. They pay more and more attention not only to ..., but also to ...
According to the survey …, …% of companies choose a carrier based on such a factor as “…”. In turn, …% of companies pay attention to …
Diagram 19. Carrier selection criteria, %
It should be noted that large market players are preferred by …% of respondents, while small and medium enterprises of the industry – by …%, and …
Indian companies still have different attitudes towards the use of 3PL. While some have already completely switched to complex outsourcing, others combine ...
3.4. Price analysis
Payments for services rendered by transport organizations are carried out using transport tariffs. Tariffs include:
...
There are several types of tariffs:
...
In general, in India, in 2016-2021. prices for freight transportation by all modes of transport (excluding pipelines) are unchanged ... The maximum increase in the cost of services was noted in 20… (by …%), the minimum - in 20… and 20… (by …%) . The maximum increase in freight transportation prices in 2020 was noted in … (“plus” …%), the minimum – in … Union Territories (“plus” …%).
...
According to GidMarket analysts, the average revenue rate for commercial freight transportation in India in 2021 amounted to … Rs. per ton. The main reasons for the growth of the indicator under consideration are …, ... The growth of the income rate in the period under review will be caused by further ...
Part 4. Assessment of factors of investment attractiveness of the market
...
Part 5. Forecast for the development of the transport and logistics services market until 2026
...
Part 6. Conclusions on the prospects of creating enterprises in the study area and recommendations for current market operators
...
Diagrams
Diagram 1. Volume of the transport and logistics services market, 2017–2021, billion Rs.
Diagram 2. Freight turnover dynamics, 2017–2021, bn t*km
Diagram 3. Dynamics of cargo transportation, 2017–2021, million tons
Diagram 4. Structure of the transport and logistics market, %
Diagram 5. Structure of the transport and logistics services market in India by Union Territories, %
Diagram 6. Dynamics of the population of India, as of January 1, 2015–2022, million people, thousand people
Chart 7. Dynamics of real incomes of the population of India, 2015-2021
Diagram 8. Dynamics of India's GDP, 2015–2021, % to the previous year, trillion Rs.
Chart 9. Monthly dynamics of the US dollar against the rupee, 2017-2022 Jan. yrs., Rs. for 1 US dollar
Chart 10. Dynamics of the inflation rate in India, 2016–2021, %
Chart 11. Retail trade volume in India, trillion Rs., 2015–2021
Diagram 12. Dynamics of the average interest rate on loans, 2016-2021, %
Diagram 13. Shares of the largest competitors in the market of transport and logistics services in 2021
Chart 14. Dynamics of the total revenue of the largest market operators from the provision of transport and logistics services (TOP-5) in India, 2017-2021, billion Rs.
Diagram 15. The volume of consumption of transport and logistics services per capita, 2017-2021, Rs./person
Figure 16. Stage of the life cycle of the TLU market
Chart 17. Structure of commercial cargo transportation by modes of transport in India, 2021, %
Chart 18. Structure of commercial freight turnover by mode of transport in India, 2021, %
Diagram 19. Carrier selection criteria, %
Diagram 20. Most trusted transport service providers, %
Diagram 21. Probability of transferring a part of logistics processes to outsourcing, %
Figure 22. Basic scheme of interaction between TLU participants
Chart 23. Average prices for freight transportation, 2016-2021, Rs./t.
Diagram 24. Forecast of the market volume of transport and logistics services in 2022 - 2026, billion Rs.
Tables
Table 1. Types of transportation
Table 2. Comparative characteristics of modes of transport used to provide transport and logistics services
Table 3. Characteristics of the levels of logistics service
Table 4. Comparative characteristics of the most developed levels of logistics activities
Table 5. Industrial production index by state of India (in % of the previous year), 2015-2021
Table 6. Dynamics of rolling stock, 2014-2020, thousand units
Table 7. List of sectors of the Indian economy most affected by the deterioration of the situation as a result of the spread of a new coronavirus infection (as of October 16, 2020)
Table 8. Average weighted interest rates of credit institutions on credit operations in rupees, excluding PJSC Sberbank (% per annum), 2015-2020 (Oct.)
Table 9. STEP-analysis of factors affecting the market of transport and logistics services
Table 10. Gross margin of the transport and logistics services industry in comparison with all sectors of the Indian economy, 2017-2021, %
Table 11. Profitability of profit before tax (profit of the reporting period) in transport and logistics services in comparison with all sectors of the Indian economy, 2017-2021, %
Table 12. Current liquidity (total coverage) in the field of transport and logistics services for 2017-2021, times
Table 13. Absolute liquidity in the field of transport and logistics services in comparison with all sectors of the Indian economy, 2017-2021, times
Table 14. Business activity (average period of receivables turnover) in the field of transport and logistics services, for 2017-2021, days days
Table 15. Financial stability (security of own working capital) in the field of transport and logistics services in comparison with all sectors of the Indian economy, 2017-2021, %
Table 16. Main companies participating in the market of transport and logistics services in 2021
Table 17. Basic information about the TLU market participant …
Table 18. Basic information about the TLU market participant …
Table 19. Basic information about a participant in the market of transport and logistics services ...
Table 20. Basic information about the TLU market participant …
Table 21. Basic information about the TLU market participant …
Table 22. Consumer price indices for freight transportation by all modes of transport (excluding pipelines) by states of India, 2016 - 2021, %
Table 23. Consumer price indices for freight transportation by rail by state of India, 2016 - 2021, %
Table 24. Consumer price indices for freight transportation by road by state of India, 2016 - 2021, %
Table 25. Consumer price indices for freight transportation by sea by Indian states, 2016 - 2021, %
Table 26. Consumer price indices for freight transportation by inland waterways by states of India, 2016 - 2021, %
Table 27. Consumer price indices for air cargo transportation by states of India, 2016 - 2021, %
Table 28. Factors of investment attractiveness of the TLU market
Table 29. Assessment of the impact of recent crises on the industry
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