Trucking sector may attract Rs 2 tn investments by 2010
The logistics industry, a key driver of the country's economic growth is expected to witness huge investments in the near future, with the trucking sector alone projected to rake in funds to the tune of Rs 2,00,000 crore in the next two years, say...
By PTI |
NEW DELHI: The logistics industry, a key driver of the country's economic growth is expected to witness huge investments in the near future, with the trucking sector alone projected to rake in funds to the tune of Rs 2,00,000 crore in the next two years, says a latest study.
According to a white paper by consulting firm Orkash Services, the logistics sector is at a potential inflection point in its growth and service maturity model, driven by an unprecedented economic boom and fast evolving market dynamics.
The largest sector of the logistics industry is trucking, which holds great potential but it is very fragmented, unorganised and not well positioned to leverage the opportunities.
"We estimate the Indian trucking industry would require a growth capital of Rs 2,00,000 crore over the next two years. The scenario presents vast opportunities for the financial institutions and the private equity investors," Orkash Services CEO Ashish Sonal told reporters.
By our estimates, trucking industry can take in $6-7 billion of private equity investments by 2010, he said.
Meanwhile, the study said that the trucking industry is riddled with critical deficiencies such as its high level of fragmentation along with the low penetration of technological advancements and lack of skilled manpower. The deficiencies if not logically solved may impede the growth of the sector.
"The Indian trucking industry has the potential to touch $85-90 billion of market size in the next two years. However, with the current constraints, the sector can scale up to only $70 billion by 2010," Sonal said.
Currently, trucking market size is $55-60 billion with around 2.5-3 million trucks moving within the country per day. Transporters with a fleet less than or equal to five trucks constitute a share of around 80 per cent of the total revenue.
According to a white paper by consulting firm Orkash Services, the logistics sector is at a potential inflection point in its growth and service maturity model, driven by an unprecedented economic boom and fast evolving market dynamics.
The largest sector of the logistics industry is trucking, which holds great potential but it is very fragmented, unorganised and not well positioned to leverage the opportunities.
"We estimate the Indian trucking industry would require a growth capital of Rs 2,00,000 crore over the next two years. The scenario presents vast opportunities for the financial institutions and the private equity investors," Orkash Services CEO Ashish Sonal told reporters.
By our estimates, trucking industry can take in $6-7 billion of private equity investments by 2010, he said.
Meanwhile, the study said that the trucking industry is riddled with critical deficiencies such as its high level of fragmentation along with the low penetration of technological advancements and lack of skilled manpower. The deficiencies if not logically solved may impede the growth of the sector.
ADVERTISEMENT
"The Indian trucking industry has the potential to touch $85-90 billion of market size in the next two years. However, with the current constraints, the sector can scale up to only $70 billion by 2010," Sonal said.
Currently, trucking market size is $55-60 billion with around 2.5-3 million trucks moving within the country per day. Transporters with a fleet less than or equal to five trucks constitute a share of around 80 per cent of the total revenue.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
