India has several advantages that make its logistics industry poised for growth, such as a large, young population and strong GDP growth. Currently logistics costs account for 13% of GDP, compared to 8.7% in the US, representing significant potential for cost reduction. The government is taking initiatives to improve infrastructure like roads, railways, ports and airports in order to improve efficiency and reduce costs. While the logistics industry is large and growing, it remains fragmented and faces challenges around lack of organization, outdated practices, and underdeveloped infrastructure and technology.

1. INDIA LOGISITCS INFRASTRUCTURE & LOGISTICS SCENERIO by Rajeev K Chopra Presented at “Seminar on India” At Bangkok in February 2008 Organized by Department Of Export Promotion, Thailand

3. Geography Of India Gati HO CHENNAI

6. India’s Economy & Logistics Industry India’s GDP is USD 750 billion and would touch USD 1.4 trillion in the next two decades (as per Goldman Sach). Currently it is 10 th largest economy Logistics Spend is currently 13% compared to 8.7% of US . Enough Scope to reduce the Logistics Spend which would require growth of 3PLs and 4PLs and improvement in Infrastructure 23% 51% Service 17% 28% Manufacturing 60% 21% Agriculture Work Force Employment Contribution to GDP

7. Logistics Industry - Dynamics

8. Elements of Logistics cost

15. Setting up of NHAI Setting Up of IRMP ( Integrated Railways Modernization Plan) Privatization of ICD Proposal of setting up a NMDP (National Maritime Development Programme) for improving Port Infrastructure. Capacity Expansion of Delhi/ Mumbai Airport; Setting up of International Airports at Bangalore/ Hyderabad. Most Infrastructure projects are through Public- Private partnership. 100% FDI Allowed for Port, Greenfield Airports, Road . “ Initiative taken by Government will usher in a more efficient and cost competitive Logistics Service Market” Government Initiatives

16. Logistics In India Current Logistics services and challanges Piecemeal outsourcing No industry focus – Segmentation would be the next key thing! Improving capability and experience Improving level of supply chain expertise Unorganised players Govt. Policies-Consider logistics as Industry. Infrastructure, no urgency Transportation High fragmentation (87 % of trucks with owners having 10 trucks or less) Complex value chains with many intermediaries (Shipper - Transporter - Broker - Financier - Truck Driver / Owner) Lack of focus on time-sensitivities Poor utilization of assets

19. Current Logistics Industry Scenario contd… Planning, Procurement Inventory Management, Distribution and Packaging, Transportation, Warehousing Logistics Consultative + Compliance Compliance Regulatory Bonded, Distribution Solutions Express/ Trucking Transportation Inventory Management, Stock and fulfillment Space Provider Warehousing GPS/ GIS/ Dynamic Routing Track and Trace Docket Tracking Future Today Services

20. THANK YOU