MUMBAI: Organized logistics sector could be a $50 billion opportunity in India by 2025 helped by formalisation of the sector, consultancy firm Alvarez & Marsal said in an industry report.
At present unorganized companies dominate the industry, accounting for approximately 80 percent of the total logistics market in India, according to Alvarez & Marsal. It is rife with fragmentation and inefficiencies.
"As the Indian logistics industry shifts from unorganized to organized, the need for supply chain performance improvement and the need for logistics companies that serve as supply chain partners will help advance investment opportunities," the report stated.
Alvarez & Marsal said Advantages stemming from India’s maturing logistics market, coupled with growth in consumer industries and increasing dispersal in demand, will positively impact six key investment areas: Road transportation, railways, multimodal logistics parks, online retail logistics and value-added services after implementation of Goods and Services Tax (GST).
The growing need for organized logistics companies in India is propelling opportunities for investors, corporates, private equity sponsors and other strategic buyers, according to Alvarez & Marsal.