Indian logistics industry looks bright: CII

Chennai, July 11: Confederation of Indian Industry (CII) todaydisclosed that there will be a substantial growth over next five yearsin manufacturing segment, that will trickle down an opportunity forlogistics companies across the country.

An event 'Logistics 2007' would be held in the city on September18, which would highlight end to end logistics and supply chainsolutions from logistics service providers.

Talking to newspersons here, 'Logistics 2007' Chairman H RSrinivasan said the organised logistics outsourcing market wasprojected to witness 25 per CAGR from 2006 to 2011 and the figureswould grow to US dollar 15 billion.

While justifying the projection, he pointed out that India servesas a good base for manufacturing for exports like automobile componentsand pharmaceuticals.

"Most of these industries are moving to India. Apart from this,the size of the domestic market is itself getting larger," he said.

However, he said ''improving efficiency and effectiveness ofIndian logistics is going to be challenging task and would requireconcreted efforts on the part of all the stakeholders includinggovernment and industry bodies." "In order to attain a good growth ratein logistics industry, we need to focus on transaction cost and itsimpact on Indian economy and adopting best practices around the globethat Indian logistics can study", he said and added that main focus onlogistics should be in agriculture, retail, construction and automotive.

UNI