• Kovllp Consulting

Opportunity for SMEs in Indian Logistics Industry

The SMEs play an important role in terms of creating employment, increasing manufacturing and contributing to GDP. The main purpose of the SMEs is to engage with the future generation and to promote the manufacturing community. Logistics act as the implementation of a complex operation, which consists of a detailed analysis. In order to meet the requirement of the customers, logistics control the flow of things between the points of origin to consumption. Logistics usually involves the integration of information flow, packaging, production and transportation. In India, SME sector is opening newer channels for business across logistics sector.


SMEs plays an important role in the Indian economy as transportation is the major problem, therefore SMEs tackle it and deal with it. It has the power and ability in crafting a comprehensive solution.


During the early stages of the pandemic, the business-to-business logistics market came almost to a standstill. Impacts were profound as supply chains were seriously disrupted and new regulations rapidly introduced. Strict containment measures in the country have ensured that the sector will witness only marginal growth in 2020.There are also new opportunities for digitalization across the logistics value chain. Digitalization and technology adoption is expected to gain traction during the post-pandemic recovery phase, which is expected to drive the Indian logistics industry to grow at a CAGR of 7.2% between 2019 and 2025.


Experts view logistics as the other half of marketing, which usually maximizes customer satisfaction by minimizing the cost. SMEs can be an asset in terms of marketing, by putting more effort in the logistics industry. They are more agile and can, therefore, enter niches. SMEs formulate a good platform that serves better, with efficient technology in transportation. Transportation needs effective and appropriate technology. SMEs help and give a personal touch to the customers and handle the account effectively.


Almost every SME, across all industry verticals, depends on logistics and shipping for business establishment and growth. Many other big enterprises also face difficulty in the logistics part of their operation often. It is much needed that SMEs enter this problematic to leverage technological advancement towards automatic shipping.

Transferring of goods especially the perishable ones are a mammoth task in the logistics sector. Warehouses with the capacity to contain refrigerators and cold storage units in cities like Trivandrum, Chennai, Gujarat, Ernakulum etc are great area for entrepreneurs to set up their business in. Construction of warehouses requires initial capital which can be taken up by the initiatives by the government who are ever ready in lending a financial aid.

Huge scope for construction of storage units and management is where SMEs trying to enter logistics department should look into. Manufacturing along with service of crates (wooden or steel) is another area which goes hand in hand with the increase in demand of the logistics sector. SMEs with limited capacity are needed to set up a manufacturing unit for crates. There will always be a growing demand in terms of crates as stacking process cannot be done without crates.

  • In the passenger logistics area, ambulance are always a great opportunity to invest in suburban cities. Identification of proper market in addition with contact with hospitals, nursing homes and polyclinics is needed for a great start in the business.

  • Although Ola and Uber have established their name in the app based cab rental, city specific SMEs can enter the app based rental business with ease and establish their presence before these companies set foot in. A small fleet of cabs is all needed to set up the network along with an app. Taxi business is always as area of opportunity for those aspiring to enter into the business. Trend of electric car fleet has already gripped certain cities of the nation and that is being encouraged by government by giving huge financial aid.

  • Livestock, animals raised in agricultural setting to produce commodities like meat, eggs, fur, wool etc. provides a huge opportunity for livestock carrier trucks and fleets as they need special infrastructure at the time of transportation.

  • Packers and movers is another area in managing logistics as it is highly cash incentive. They also provide a huge margin and can be started with a small investment and can be expanded easily.

For an advancing economy, SME has been viewed as the mainstay of development. SMEs are assisting Logistics industry with growing, as the interest for stacking and transporting is expanding. SMEs need to actualize activities and procedures with a specific end goal to accomplish the achievable target. SMEs assume an imperative part of the Indian economy as transportation is the significant issue; consequently, SMEs handle it and manage it. It has the power and capacity in drawing out the power and making an exhaustive deal.


The Logistics business is exceedingly divided and is controlled by the small and medium venture. SMEs can build up a situation in Logistics and can be utilized as a key apparatus for food. The logistics industry is a lively industry where small and medium ventures assume pivotal part. There are bunch business openings that SMEs can concentrate on this industry. The organizations simply should be outstanding with the advanced methodologies that the enormous firms are applying and deal with their network in order to develop and flourish.

0 views

© 2029 created by KOVLLP