An Overview Of Indian Logistics Industry Business Essay

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The introduction of this dissertation explains the business concept of establishing a new logistics services to move goods from one place in India to another. A detailed literature review will be conducted to find the in-depth evaluation of previous research related to this business. After that a research will be conducted to prove and understand the reviews that are made. This section will clearly explain the purpose of the research, its objectives, research question, overview of the business and a chapter summery which are essential topics for a dissertation.

1.2 Purpose of Research:

The main purpose of conducting a research is to find the feasibility of starting a new logistics service business in India. Can the business be successful or will it be a failure. This research will also be helpful to analysis the needs and demands of the customers and potential clients and if there is any factor which can help the successful run of the business.

1.3 Research Question:

The main research question will be "What are the feasibilities and viabilities of starting a new goods transport services business in India?"

Research Objectives:

The following are the research objectives for Guron Carrier.

To identify the outlooks of the logistics market in India.

To explore new market trends and to find ways to keep up with the competition.

To understand the Government polices and schemes useful for this business.

To find out other realities of logistics business while conducting business deals.

To evaluate various factors that can affect the service given by the business.

1.5 Business Overview:

Transport industry is the backbone of every country's progress. There was a time when business was limited to the boundaries of a particular land but with the invention of wheels, things started changing. Evolution of transportation industry changed the business style and the whole world is now able to trade with one another irrespective of the distance and landmasses. No one can deny its importance in the modern age. It has done glorious revolution in every country.

The researcher has planned to start a logistics business after completing his business studies. The knowledge he gathered from the studies will help him to do a strong business research and business plan. Establishing a new logistics business is a challenging task. It is very important to study the market and its growth, to identify potential customers and clients and understand the global economical changes related to this business.

Most of the existing business depends on transportation as its main criteria. The researcher has proposed to bridge the gap and the needs of the business which depend on transportation by providing different types of transportation devices. This can be from a small scale basic carriage to a heavy load transportation of goods. The research will target small scale, medium scale and large scale business sectors like an individual farm product from a farmer to heavy loads from government and other private sectors. The researcher will start his business in New Delhi, the Capital of India. As most of the Indian market depends on transportation of goods within the Indian subcontinent, the researcher feels, there is a greater chance of growth in this business.

It would be a disaster to think of a day without transport facility. Most of the major Cities in India are connected with transport facility. As these Cities expand to the nearby villages and settlements there is always a constant need to expand the transport facility to these areas. And another factor is that India being a large country with second largest population in the World, there is always a greater need for transportation in remote regions of India.

1.6 Chapter Summary:

The dissertation on Guron Carrier will be designed and structured into 6 different sections. These sections will have multiple subheadings and bullet points where ever necessary. Graphs, charts and images will be added in appropriate places to backup and explain in detail about the discussed topics. A brief outline of these sections is given below.

Section 1: This is the current section with the Introduction to the Dissertation and the Business.

Section 2: The Literature Review section - the research objectives will be examined using reliable sources like internet websites, books and popular journals.

Section 3: The Methodology - The methods of research and the way in which they were conducted and gathering of results will be discussed in this section.

Section 4: The Result - All the data collected from the research will be analyzed and examined.

Section 5: Business Plan - From the analysis of the research a business plan will be created with Marketing strategies, Human resource requirements, Financial plan, the risk factors involved, Implementation of the business and finally the conclusion of the business plan.

Section 6: Conclusion on the Dissertation.


2.1 Introduction to Literature review:

A Literature review is nothing but an in - depth analysis of previous research pertaining to a particular topic of research. It is also the summary of a research and synopsis of an area of a particular research, which allows a reader to establish the why the program is pursued. A good literature review will explain the why the researcher has chosen a particular research question for his or her research. (Shuttleworth, 2009)

As the research is based on a logistic business in India, it is very important to find the market trend with the history of logistic in India, who the people will be benefited from this new logistics and understand the strength and weakness of this business. The topics covered in the literature review will be history of transport business in India, economic growth factors which can have direct and indirect impact on the business, Indian Logistic Market, Latest trends in the market and finally the analysis of the literature review followed by the conclusion.

2.2 Logistics Definition:

"Logistics is the means to provide the right type of transport services at the right price, at the right place, at the right time and in the right condition". "It is the art and science of managing and controlling the flow of goods, products, services, energy, information and people from the point of origin to the destination". (Logistics History - Logistics, 2012)

2.3 History of Logistics:

The birth of logistics dates back to an ancient time of Greeks and Romans. During war time the military officials where titled as 'Logistikas'. Their main duty is to provide transport services related to the supply and distribution of resources. This will help the solders to relocate to a new forward base position effectively, which can determine the outcome of the war. And during the Second World War the concept of logistics saw a tremendous transformation. (Logistics History - Logistics, 2012)

2.4 Logistics in India:

The Logistics in India did not differ from the logistics elsewhere in the world. There are several factors that are involved for succeeding in logistic field in India. Some of the factors are mentioned below.

India is considered as the 4th largest economy in the World right now.

Over one quarter of the youth population of the world is said to be living in India.

India has potential human resource with knowledge in various sectors and the ability to work.

India has the second largest English speaking population in the World.

India has the second largest resource of workforce who is technically qualified.

These are one of the main reasons for the researcher to select logistics as a proposed business. (Logistics India - Logistics, 2012)

2.5 Economical Environment:

In this part of the literature review the researcher tries to explain the economical factors which can prove that a logistics business can be successful. Many articles were found in the internet related to the Indian logistics Industry and many important points were gathered. Some of which are explained below.

2.5.1 An Overview of Indian Logistics Industry:

The Indian logistics industry is estimated to be worth over US$125 billion in the year 2010.

45 million people in India were employed in logistics Industry.

The logistics industry in India is expected to grow annually at a rate of 15 to 20% and it is estimated to reach revenue of US$385 billion by the year 2015.

The market shares of organized logistics in India are expected to be doubled by the 2015.

As according to the World Bank Logistics Performance Index of the year 2010, India is place in the 47th position out of the 155 countries involved.

The Indian Government has implemented several projects such as Golden Quadrilateral project, East-West & North-South Corridor, and Free Trade & Warehousing Zones (FTWZ) to improve the infrastructure facilities of Logistics.

Due to the change in the tax system in India over the decade, there is a rapid growth in the automobile, pharmaceuticals, FMCG and other retail industries.

Other major sectors that are investing in logistics are aviation, metal & mining and consumer durables.

The logistics cost in India is estimated to be 13% of the GDP and is considered high when compared to other major economies.

(Indian Logistics Industry - Overview, 2012)

2.5.2 Foreign Direct Investment (FDI) Regulations:

Under the automatic route 100% FDI is permitted in general for all the logistic services in India.

For courier services subject to FIPB approval 100% FDI is permitted.

For Air transport services, which includes air cargo services under the automatic route up to 49% FDI is permitted.

Under automatic route in Ports and Harbors, 100% FDI is permitted.

Under the automatic route for storage and warehousing including the warehousing of all agricultural products with cold storage, 100% FDI is permitted.

Under automatic route for transport support services, 100% FDI is permitted.

(Indian Logistics Industry - Overview, 2012)