Today the size of the Logistics Industry in India is pegged at 48,000 Crores of which the Express
segment accounts for 15,000 Crores with about 50% operated by the unorganized sector and
remaining by the organized sector comprising of mid size companies and large organizations having
a strong National presence. The Express industry is a fragmented industry with a large number of
players. However, there has been considerable consolidation of the industry over the years with the
large organized players. The larger players have wide networks with presence in National and
International locations. The medium size players have a regional focus with limited presence across
other regions. Express is the fastest growing segment of the Logistics Industry with projected
growth rate of 17% YOY for the next three years.
While general economic growth and rising needs are taken as the main drivers of growth it is also
evident that an untapped area is that of creating a „value proposition‟. The founders of Firstlog have
rich experience in handing projects or rather handing a service with the paradigm of a project. This
has created a level of advisory expectation from customers which can be positioned as strength to
create a niche in the larger Express segment. Though “Lead Logistics providers” (LLPs) are
commonly associated with large 3PL organizations or high technology outfits, a dimension of the
same skill sets is being mirrored in the needs of the Express segment as well. Firstlog was quick to
react to the situation and mapped the market opportunity with affirmative feedback. These services
are linked to the special needs of various customer segments that do not have a need for hardcore
3PL and Infrastructure advisory but a latent need to lean upon an Express organization not with the
prescriptive – “do this for me”, but rather what should we do? How do we manage this? What do you advise.
