BVL in Berlin The Indian Logistics Sector- Today & Future Outlook
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1 BVL in Berlin The Indian Logistics Sector- Today & Future Outlook 2014 APOLLO FIEGE Integrated Logistics Private Limited
2 Personal Introduction Christian Herzog 15 years experience in the Logistics and Supply Chain Industries 6 years hands on experience in the Middle East & India BVL Representative Dubai BVL Representative India since April 2014 Current Position: Vice President (Global) Apollo Fiege
3 Contents India Facts & Figures Market Structure Supply Chain Industry Important Trading Partners for India s Economy Impressions Current Logistical Challenges Expected Development Supply Chain Industry Upcoming Projects India s Mandatory Focus for Future Growth
4 India Facts (1 Euro = Inr.79) Fact Figures Facts Figures Population 1.2 billion Warehousing Space 9500 million sq. ft. States and Districts 30 states with 672 districts Mechanized Warehouses 8 % GDP trillion Truck Operators 1.5 million GDP Growth (FY13-14) 4.9% Average Truck Fleet 4 trucks Current Account Deficit Euro 33 billion Airports 132 Fiscal Deficit 4.65% of GDP Airlines 5 passenger & 1 cargo Logistics Spend 4% of GDP Ports 13 Employment 45 million Road Network 4.67 million km Ministry no single sponsor Rail Network km APOLLO FIEGE Integrated Logistics Pvt. Ltd.
5 Market Structure Supply Chain Industry Market Consolidation More than players Highly fragmented and unorganized sector percent of the market is controlled by up to 95 percent of the domestic forwarders. Multinational players are more and more entering the Pan India Logistic Landscape Source: Ministry of Commerce, EIU, World Bank
6 Important Trading Partners for India s Economy China GCC USA
7 Impressions Transport APOLLO FIEGE Integrated Logistics Pvt.. Ltd..
8 Impressions Warehousing India Hubli Vizag Particulars Hubli Vizag Warehouse Area 3350 sqft 1500 sqft Clear Height 23ft. 20ft Office Area Yes Yes Basic Amenities Yes Yes Floor Type Cemented Cemented Captured Area 3350 sqft 1450 sqft Warehouse Type Dedicated Dedicated APOLLO FIEGE Integrated Logistics Pvt.. Ltd..
9 Impressions Multi User Centre Particulars Panvel Warehouse Area sqft Clear Height Office Area Basic Amenities Floor Type Captured Area 39 ft Yes Yes Trimix sqft Warehouse Type Dedicated APOLLO FIEGE Integrated Logistics Pvt.. Ltd..
10 Impressions Latest Trend Logistics surface: 45,000 ft² No. of Locations: 12 Operating since: 2014 Storage: SKU In/out: 12,600 units/ day Scope of Services Receipt from domestic and international plants & suppliers Customs Clearance Warehousing for finished goods and Spare Parts, replacement parts and accessories Pallets, small shelf & Bin locations Quality control, Picking, Kitting & Packing Distribution & Milk Run Deliveries to Retailers & Distributors Tracking & Tracing Returns Management
11 Current Logistical Challenges Inadequate road network coverage Inadequate air and sea port capacities Cold Chain : 40% of all perishable products are not reaching the store before expiry Important rail networks are oversaturated Rail freight tariffs are high Transit times are long and uncertain Rail terminal quality is poor State of cold storages is poor Multimodal Logistics parks yet to take off Technology and Skills related challenges Education
12 Expected Development Supply Chain Industry Source: Ministry of Commerce, India
13 Upcoming Projects Solutions The Golden Quadrilateral (GQ: km) connecting the four major cities of India: Delhi Mumbai Chennai Kalkota
14 Upcoming Projects Solutions
15 India s Mandatory Focus for Future Growth Shift cargo movement from road back to rail by accelerating the pace of Dedicated Freight Corridor Strengthening of costal shipping for the movement of freight traffic More Focus on Inland water transport Completion of construction of National Highways Developing a solid Cold Chain System Build Multi Modal Logistic Parks Rationalize taxation policies, procedures GST Standardized Logistical Education ( Grade 12 up to MBA level ) Multimodal Logistics parks yet to take off Technology and Skills related challenges
16 Christian Herzog Vice President ( Global ) Tel christian.h@apollofiege.com
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