Indian third party logistics (3PL) market is likely to reach Rs 48,000 crore by 2019, says a PTI report citing a research by RNCOS.
The Indian market is expected to witness a robust growth during 2014-2019. And is anticipated to grow at a CAGR of 21 per cent to touch Rs 48,000 crore over the period 2014-2019.
"The 3PL market growth is fuelled by factors like the inclined outsourcing by Indian companies and many MNCs particularly in retail, pharmaceutical, automobile and FMCG sectors," according to a report by research and consultancy firm RNCOS.
The government's investment towards development of freight corridors, ports and highways, increasing demand by pharmaceutical industry and significant growth of e-commerce industry will be other growth drivers for the sector, it added.
The third-party logistics has been proved to be successful in enhancing logistics efficiency of many organisations and rapidly gained popularity while spreading across the country, the report pointed out.
Commenting on the matter, RNCOS Founder Sushmul Maheshwari said:"The 3PL players are emphasizing more on the technological upgradation to engage with the customers and also points out a trend of Fourth-party logistics (4PL) that is emerging to support the 3PL business in the country. The concept of 4PL is expected to catch momentum over the coming years and it is expected to address the strategic failures of 3PL services and proposes the opportunity to achieve incremental benefits."
Maximum revenue in this sector is generated by major players, and the share of organized segment is expected to rise in future due to ventures and mergers and acquisitions which are anticipated to be more within domestic and international third-party logistics companies, as per the report.