The logistics / supply chain is the backbone of an economy. It's no different in the case of India.
Compared to developed nations India is deficient in this space. Companies in this sector has been growing fast to fill the gaps and ensure last mile connectivity to every corner of the country.
The sector is about US$ 250 bn in size and is among the biggest employers in the country. More than 22 m people in India earn their livelihood ensuring the efficient delivery of goods.
The e-commerce boom in India has propelled the sector to a new orbit of growth.
It's among the few sectors in the 'infrastructure' and 'essential' categories.
Recent trends point to tier-2 and tier-3 towns becoming the new growth drivers for this sector as large cities reach saturation levels.
A big challenge for the sector is its highly fragmented nature with a large numbers of unorganised players. About 90% of the sector is unorganised. This is due to the low entry barrier to start a company in this sector.
Another big challenge is inadequate road infrastructure in rural areas.
Storage is also a challenge due to inadequate numbers of warehouses and cold storage facilities in the country.
However the industry along with support from the government is overcoming these challenges. The day is not far when these issues will be a thing of the past.
Check out the list of logistics / supply chain stocks here. For more detailed updates, check the latest Logistics sector results.
Also check out Equitymaster's powerful stock screener to find the top logistics companies in India.
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