14% annualized growth projection for global chemical logistics

Technavio market research analysts recent forecast, the global chemical logistics market, has projected a CAGR of 14% during for the business between 2016 to 2022. The increased demand for the customized green warehouse will drive the demand for the global chemical logistics market during the forecast period. Logistics companies such as Deutsche Post World Net have rolled out green initiatives in transportation, warehousing, and distribution operations in a bid to reduce their carbon footprint by 30% by 2020. According to a senior analyst at Technavio for logistics research, “The shift of the chemical logistics industry to…

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Telematics, e-commerce and 3D printing drive new growth opportunities

Telematics, e-commerce and 3D printing will form key foundations in the evolution of the original equipment manufacturer (OEM) aftersales channel, with OEMs attempting to integrate all aftersales services into a single, digital platform. According to a latest report by Frost & Sullivan, global automotive aftermarket demand is expected to increase by 4.4% during 2018, with a slowdown anticipated in some developed markets. Participants in the OEM aftermarket who embrace potential data monetisation opportunities that can be optimised by enhanced customer accessibility, widening B2B networks, and expanding product and service portfolios,…

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TCI-III report emphasizes better insurance coverage regime for LSPs

Despite high growth projections and some of the policy cushion to propel this growth vis-à-vis GST implementation and according infrastructure status last year, the insurance coverage regime in the freight business in the country is still not in favour of one critical section in the value chain- the logistics service provider (LSPs). This is the major finding of a recently unveiled comprehensive report – a joint exploratory study conducted by Transport Corporation of India (TCI) and Insurance Institute of India (III). The joint exploratory study found that Logistics Service Providers…

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ASSOCHAM-Deloitte paper calls for integrated eco-system for logistics

With the Indian logistics sector having taken centre-stage of government reforms, moving towards an integrated ecosystem is pertinent for holistic growth of the sector, as recommended in a thought paper jointly produced by ASSOCHAM and Deloitte. The paper, titled ‘India-On the cusp of a logistics revolution’, noted some of the continuing concerns impeding the growth of logistics sector including inadequate infrastructure, slow rate of digital adoption, lack of sufficiently skilled labour, poor quality and performance standards, and regulatory hurdles. In light of these, a key recommendation of the paper is…

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Scooters drive two-wheelers growth

According to a recent report by the credit rating agency ICRA, the two-wheeler market has grown at a robust double-digit trajectory in the last fiscal with scooter being the show stopper. “The two-wheeler volumes in domestic market grew at a healthy rate of 14.8% Y-o-Y during FY2018 – the highest growth since FY2011, with multiple factors influencing the growth trends as the year progressed. The highlight of the growth during the current year was a robust demand in the scooters segment that outpaced the industry growth and also a strong…

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Logistics sector medium term growth expected to be 9-10%: ICRA

According to a recent report by credit rating agency ICRA, “the pick-up in the economy and industrial output through the second half of the current fiscal post the implementation of the landmark tax reform – GST, has also been visible in the improved performance of logistics companies in India.” Commented Shamsher Dewan, Vice President and Sector Head- Corporate ratings, ICRA , “Our analysis of the Q3 FY2018 performance of key listed logistics companies indicates their revenue growth at 5.8% on Y-o-Y basis and 6.7% on a Q-o-Q basis. The significant improvement on…

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Customer expectations transforming retail landscape

According to the tenth annual shopper study of Zebra Technologies which was unveiled recently, “ heightened customer expectations for delivery are transforming the retail landscape. 69 percent of shoppers in APAC (vs 66% globally) expect next-day or same-day delivery and 37 percent prefer same-day or sooner.” The report clearly underlines the factors which could be major turn off points for the buyers. “Consumers cite out-of-stock merchandise, difficulty finding an item, and unclear pricing and discounting as the leading causes of in-store shopping dissatisfaction,” it said. The study showed that retailers…

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Bharatmala may impact 25 NH-Toll Road projects

According to an assessment by leading credit rating agency ICRA, the Bharatmala network planned by the government may impact the execution of as many as 25 NH-Toll projects. “The Bharatmala network designed on the shortest possible route connecting the origin and destination, though a well thought through and definitely a step in the right direction, is bound to impact the existing network by directly competing with a few stretches including some of the existing BOT (Toll) road projects. ICRA assessed the impact of the proposed 44 economic corridors (EC) under…

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Collaboration to bring cost efficiencies in the logistics sector

(Summary of a recently released ICRA report) Historically the different modes of transportation within the logistics industry have been competing against each other for market share because of which the Indian Logistics Industry has been unable to reap the benefits of coordinated logistics movement, leading to inefficiencies and high cost of logistics. There is a need to leverage the inherent advantages of the individual modes, promote collaboration among them and develop an integrated logistics network in the country, where efficiencies and effectiveness will decide the modal mix for transportation. The Indian…

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Auto components industry to grow in double-digit trajectory

The demand for auto components from domestic original equipment manufacturers (OEMs), especially high volume two-wheeler (2W) and passenger-vehicle (PV) industry which together constitute about two-third of overall ancillary industry size, has remained strong in Q3FY2018. Moreover, stellar growth in CV as well as tractor segment has further supported overall volume growth. According to an ICRA note on the industry, given the indicative trends, the growth momentum is expected to sustain in Q4FY2018 as well. This will be strongly supported by improved demand outlook in key end user segments as well as expected…

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