Logistics companies operating in India will continue to see rapid growth as more companies look to outsource, according to the latest report by industry analyst RNCOS.
RNCOS said recent improvements in logistic infrastructure by 3PLs had led them to be perceived by many Indian producers as a viable way of controlling both internal and external logistic processes.
Estimated revenues for 3PLs of US$69 million in 2010 would continue to grow at around 36% CAGR over 2012-2014 “on the back of rising demand for warehousing and transportation in consumer electronics and durable industries,” said RNCOS’s 3rd Party Logistics Market in India report.
“Industries including cement, chemicals and pharmaceuticals, textiles, FMCG, and metals, as well as the retail segment have been recognized as the major contributors to the projected economic growth, particularly to logistics revenue.”
However, RNCOS also reported some obstacles to growth, including the difficulty of serving such a huge and geographically varied country. “To overcome this problem, 3PL companies will have to make huge investment to setup a logistics network,” the report concluded.
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