Apollo LogiSolution Logistics industry likely to grow at a CAGR of 8.6% by 2020

Mr. P.S.S Prasad, President, Apollo LogiSolutions, in an interview with Maria R, says that the push given by the government to enhance the road, port, railway, and airport infrastructure in India will not only provide an added impetus to the logistics sector but to the country’s economy as well. Moreover, implementation of GST will have a positive impact on the 3PL and warehousing sector in India, as it would increase productivity and raise efficiency levels in the logistics sector.

What is the current scenario and future growth prospect of Indian logistics sector in the wake of government's thrust on infrastructure development, 'Make in India' drive, and mushrooming e-commerce business?

It was in early 2016 that the Union Government announced a budgetary allocation of Rs.2.21 lakh crore for the infrastructure sector in India. Rs.97,000 crore has been allocated to the roads sector as the government had projected that it will award 10,000 kilometres of new road projects in FY17. This includes Rs.19,000 crore, which is currently being invested in rural roads under the Pradhan Mantri Gram Sadak Yojna. This follows the ongoing faster infrastructure development process across the length and breadth of the country.

Also, according to the government, they had inherited about Rs. 1 lakh crore of stalled road projects. Of these, in the past 2.5 years, 85% are back on track. In the Budget, the government had announced an upgradation of 50,000 kms of state highways to national highways at a cost of Rs.15,000 crore, the work for which is going on. Further, the Finance Minister had announced a series of measures for modernizing existing ports and building new ports along India’s east and west coasts. The idea of the government is to upgrade the infrastructure sector in India through Public-Private Partnership (PPP).

All this gives an indication that the government is focused on strengthening the infrastructure backbone of India. This emphasis on rail, road, ports, and airport infrastructure will provide an added impetus for growth not just to the logistics sector but to the country’s economy, and will also generate employment. As a leading integrated logistics solutions provider, we are fairly satisfied with the push given by the federal government in enhancing the road, port, railway and airport infrastructure in India.

What impact will GST have on the logistics sector?

With the implementation of Goods and Services Tax (GST) from July 1, 2017, we are hopeful that it will have a positive impact on the 3PL as well as the warehousing sector in India. GST will help India emerge as a country with a unified common market. The simplification of the taxation system would make inter-state transportation of goods more efficient. GST is expected to act as the secondary factor which will build upon the primary foundation of a good infrastructure and faster adoption of technology in the sector. GST will ensure that the nascent 3PL further embeds itself in the logistics space. In essence, GST would increase productivity and raise efficiency levels in the logistics sector and the economy as a whole.

How strongly is Apollo LogiSolutions positioned in the logistics space?

ALS success story is nothing short of extraordinary. It offers comprehensive logistics services relating to container freight stations, inland container depots, freight forwarding, custom brokerage, 3PL, warehousing and allied services.

The company has been growing at a CAGR 35-40% in the last four years. It aspires to play a pivotal role in the growth of infrastructure in India through a combination of asset and service-based solutions. It aims to reduce delivery times and inventories for its customers enabling them to attain a competitive edge in international markets.

With a total employee strength of over 1000, 1.3 million sq.ft of warehousing space, and a geographic reach to over 100 countries across Europe, Middle East, Africa, and Asia Pacific, ALS is the one to watch in the integrated logistics space.

What is your view of the Govern- ment’s ambitious ‘Sagarmala’ project?

According to industry sources, the Sagarmala project is aimed at economic development of the country through port-led activities. It will boost economic activity near coastal locations, and will redevelop the existing port infrastructure through upgradation in port handling equipment and extensive use of IT for improving monitoring and operations of port activity. Also, the project is expected to enhance shipping and port handling capacity. It is estimated that the Sagarmala programme will boost the country’s GDP by 2%.