logo
logo
AI Products 

Indian logistics sector to grow 8-10% over medium term; outlook stable: ICRA forecast

avatar
Indian Transport & Logistics News
Indian logistics sector to grow 8-10% over medium term; outlook stable: ICRA forecast

October 11, 2019: Credit rating agency ICRA Research has forecast a stable outlook for the domestic logistics sector, which it said would grow at 8-10 percent over the medium term.

The ensuing demand momentum will lead to higher freight volumes in the second half of FY2020 despite weak macro-economic scenario, it said.

ICRA analysed a sample of 12 large logistics players in Q1 FY2020, and found a slow down to 7 percent as compared to 11 percent in Q4 FY2019 and 10 percent in Q1 FY2019.

Capital expenditure towards capacity building (fleet, warehousing, cold storage, terminals etc.)

and investments in technology to improve service offerings is estimated at Rs9-11 billion annually (which translates into 2-3 percent of operating income).

Subdued freight availability due to economic slowdown and flat freight rates led to moderate revenue growth momentum of the logistics sector.

collect
0
avatar
Indian Transport & Logistics News
guide
Zupyak is the world’s largest content marketing community, with over 400 000 members and 3 million articles. Explore and get your content discovered.
Read more