Is the Logistics business promising for launching a new winning business?
Is the Logistics business promising for launching a new business? According to Insight Partners, Southeast Asia’s logistics market is going to have a $19 billion jumps from $36.4 billion in 2017.
By Admin
Overview
The answer to ” Is the Logistics business promising for launching a new business? ” this question is not an easy one. This article tries to explore the possibility of venturing into the logistics sectors. A well planned logistic ecosystem can build a robust economic growth of the region with competitive potential for domestic and foreign trade. The logistic sector is the most important accelerator for income growth, lowering disparities with trade growth. This can also support new business opportunities for small business entrepreneurs in the region.
According to Insight Partners, Southeast Asia’s logistics market is going to have a $19 billion jumps from $36.4 billion in 2017. That means Southeast Asia’s logistic market will reach $55.7 billion by 2025 with a CAGR of 5.5%. So, this will give a boost to Southeast Asia’s Logistics market a $2 billion each year over these eight-year period.
“Government India has granted logistic sector “infrastructure” status has boasted logistic market size of India to $215 billion in 2020.”
Government India has granted logistic sector “infrastructure” status has boasted logistic market size of India to $215 billion in 2020. A major jump of $55 billion from its market size value of $160 billion in 2017. The logistic sector is expected to have a CAGR of 10.5% from 2020 to 2025.
The logistic market size of North East India can be estimated considering having equal opportunity for all States and Union territories in India. Based on this analysis North East Logistic market has an estimated market size of $52.75 billion and will reach $86.90 billion by 2025. This analysis does not reflect the impact of the “Look East Policy” on-ground implementation which is sure to raise logistic market revenue many folds.
The above two market scenarios are without the consideration of border trade that is going to open up as Act East Policy is getting implemented on the ground in near future. Leveraging this opening up border trade logistic business will able to gain market size in many folds. With this emerging opportunity while pooling together the region of North East India and Southeast Asia’s logistic market will gain market size of $47.27 billion from $95.49 billion in 2020 to reach a market size of $142.76 billion in 2025. Any business consultancy expert can rightly point out what further new business opportunity this may open up for the region. This is will bring many new opportunities for the entrepreneur of the region. Entrepreneurs should consult business ideas with industry experts for new business idea generation.
Special attention is being given in National logistic policy to create a seamless operation logistic business. Logistics Wing has identified and spruce up the logistics gap in the North Eastern States for seamless integration and providing a spin to ‘Act East Policy’ or vice-versa.
Logistic Business in Act East Policy Perspective
“Act East Policy” if acted appropriately to integrate emerging technology would actually make it feasible to have breakfast in India, lunch in China, and Diner in Tokyo on the same day. It may look far fetch but it is doable.
There are many facets in Act East Policy, if it looks purely from partnerships and security cooperation with the countries of Southeast Asia and the Far East – such as Vietnam and Japan and leveraging the same for a logistic business no doubt it would do wonder for the region prosperity and economic development.
North East is a connecting point between mainland India and Other South Asian Nations. To make Act East Policy a Success many infrastructures are currently developing like widening the roads, expanding air connectivity, extending railway networks, opening new and reactivating dormant trade routes, as well as facilitating border trade and transit points. Many of the targeting development might have already been completed and pilot testing of logistic cargo transportation is being done.
India, Myanmar, and Thailand collaboration key infrastructure projects of 1,360 km national highway are nearing completion that will give critical connectivity to India with not only Myanmar, Thailand but also other southeast countries boosting trade and commerce initiative. Another initiative is the up-gradation and widening of a 65-km road between Imphal in Manipur and Moreh in Myanmar. These projects are part of the Great Asian Highway envisioned for boosting trade between India and countries in Eastern India. Similarly, Maritime access to a port in Myanmar, Bangladesh is already being pilot tested for smooth trading operation. Considering this development logistic business in the region is surely looking for a big jump in near future.
This is going to open up opportunities for the entire region for logistic business growth and customer acquisition.
Local Market Perspective
North Eastern Market logistic businesses are matured players in the market. Many of them might have already gather business intelligence from an operational perspective to gain first-mover advantage. However, there are probably have many intricacies to take care of while intending to operate in international borders in terms of traffic laws, trade laws, customs laws, safety-security goods, and operators, etc. A business can gain more advantage by early familiarizing and adopting new technology for operation support, tracking, transaction, etc. Considering the present market scenario and emerging development established players in the North East logistic business market are going to gain some advantage.
Competitive Scenario in Local Market
Some of the top Local, National and International logistic business market player operating in and out of Guwahati are:
ABC India Limited – Founded in 1963, First public transport company, one of the pioneer logistic players in Assam and North East with spread across India operation. It operates across the end-to-end services in transportation with pan India presence with a branch network of 100+ locations in India, warehousing Space 200,000+ sq. mt.
Aerobics Logistics Solution – Aeropict Logistics Solution Pvt. Ltd founded in a couple of years back is one of the most progressive transportation management companies in the business. Our focus is to provide customers with superior supply chain management services and best in class technology at the lowest possible cost.
True Care – True Care Logistics solution provider operate in Guwahati local market, Assam, and across the North Eastern States in logistic sectors in trans portation and trucking
Online Logistics – Founded in 2007, online logistics operate in the local market as a transporter, cargo agents
Siddi Vinaya Logistics – Siddi Vinayak logistics operate in Assam and across 1 states in India. It is one of the top emerging logistics company in Assam.
Speedex Logistics Packers & Movers – Founded some two years back, Speedex Logistics Packers & Movers has expertise in relocation package of packing, loading, unloading, and unpacking services which provide a very popular with “clients. No headaches, no tension solutions. This well-diversified group has interests in relocation, transportation, logistics, 3PL warehousing, and related activities.
Chartered Logistics Services – Founded in a couple of years back, chartered Logistics Services is India’s pioneer in logistics, reverse logistics, distribution, cargo freight forwarder, and Supply chain services in Northeast India.
Darcl – Founded in 1986, Darcl is an integrated logistics company operating nationally and internationally. It covers end to end services across the logistics industry with nearly 200 offices including 20 trans-shipment owned hubs spanning port cities, and industrial towns serving across over 1200 cities, over 7000 destinations served
Om Logistics – Om group founded in 1983, operates in the logistics industry internationally and across the Indian geography, spread over 1500 locations, 85 countries, and with more than 5000 efficient employees and a huge space of 20 million square feet.
Inland World Logistics – Inland World Logistics an award-winning company providing stress-free comprehensive logistics solutions in India and Internationally.
Professional Logistics – Founded in 1998 in Delhi, with offices across 28 locations in India Professional Logistics Pvt Ltd in International and Indian domestic players in logistic sectors across various sub-services in the logistic domain.
Super Safe Logistics- Super Safe Logistics(India) Pvt. Ltd is registered in Assam and West Bengal to operate in Assam and Nationally in the logistics sector as a leading transportation & logistics service provider with a presence in the sphere of cargo transportation.
RIVIGO – Found a few years back, RIVIGO operate nationally, is a technology company that is building the material movement pipeline of India through a globally unique innovation of relay trucking, enabled by a strong interplay of technology, data, culture, and operational excellence with the goal of making logistics human, faster, safer and cost-effective.
Esskay Logistics – Local office refurbishment service in the logics sector operating in the last couple of years
Patel Logistics and Packaging – Local transportation and logistic service provider operating in Guwahati
Global Logistics – Local Guwahati market logistic service provider
Blazelog – Founded in 2019, Blazelog is a last-mile logistic solution for the local and hyper-local market in Guwahati
Z Logistics Solution – Local market logistic player
Closing Remarks
Improving infrastructure and opening up of connection across states and the trans-national borders is bringing up opportunities for existing players and startups entrepreneurs equally. Business with a clear vision and tactics for moving market and mindset can become a clear market leader at the local level also national, and regional level in East Asia & South East Asia.
