Logistics and Supply Chain Sector: Jobs and Salary in the Logistics and Supply Chain Management Sector

The Indian logistics and supply chain management sector is an integral part of the country’s economy, facilitating the movement of goods and services across the vast geography of India. As the Indian government focuses on economic growth with a projected GDP target of $5.5 trillion by 2027, the logistics sector has become a critical catalyst for achieving these goals.

India’s logistics sector is one of the largest in the world, valued at around $435 billion in FY2022, and projected to grow at a CAGR of 14.5% to reach $591 billion by FY2027. This growth is driven by several factors:

• The implementation of the National Logistics Policy (NLP) 2022 aimed at reducing logistics costs to 8-10% of GDP from the current 13-14%.
• Development of multi-modal logistics parks and dedicated freight corridors to enhance efficiency and connectivity.

The sector supports nearly 22 million jobs, and the number is expected to increase by 10 million by 2027, indicating its significant contribution to employment generation.

Tailwinds in Last Five Years

India as the fifth-largest economy globally now with a GDP of $3.7 trillion in 2023, has displayed significant resilience and rapid recovery after the COVID-19 pandemic-induced contraction of 7.3% in 2020. Between 2015 and 2019, India’s economy grew at an average annual rate of 7%, and post-pandemic, it bounced back strongly with a 15.3% growth in 2021-2022, driven by revivals in the service, manufacturing, and agricultural sectors.

The manufacturing sector, contributing 15.3% to GDP in FY22, is primed for further expansion, supported by the Make in India initiative and India’s evolving role as a global manufacturing hub. Efficient and technology-driven supply chain solutions, including the use of automation, AI, and blockchain, are essential to supporting India’s growing manufacturing base.

India’s ranking improvement to 38th in the World Bank’s Logistics Performance Index (LPI) highlights its strides in logistics and ease of doing business. The Indian logistics market is expected to reach a valuation of $591 billion by FY2027, positioning the country as a critical player in global trade, with a focus on enhancing multi-modal logistics parks (MMLPs) and dedicated freight corridors.

Government Initiatives and Infrastructure Development

The Indian government is playing a pivotal role in boosting the logistics sector through several initiatives:

1. National Logistics Policy (NLP) 2022: Aims to create a single-window e-logistics market to improve coordination and efficiency.
2. PM GatiShakti: A multi-modal infrastructure project that seeks to integrate various modes of transport and enhance logistics connectivity.
3. Dedicated Freight Corridors (DFC): High-speed rail corridors designed to facilitate the seamless transportation of goods across major industrial zones.
4. Multi-Modal Logistics Parks (MMLPs): Ernest & Young’s report highlights that the government has committed ₹50,000 crore to develop 35 MMLPs across the country. These parks will integrate road, rail, and air transport, optimizing freight movement and reducing costs.

A Few Words about ULIP

The Unified Logistics Interface Platform (ULIP) is a flagship initiative by the Government of India under the National Logistics Policy (NLP), aimed at creating a single digital platform to streamline and integrate logistics across multiple stakeholders. ULIP connects 24 logistics systems across ministries such as Road Transport, Railways, Ports, and Customs, offering real-time data access and transparency throughout the supply chain.

This integration involves 1,600+ data systems, facilitating end-to-end tracking of cargo, faster movement, and reduced logistics costs. The initiative is aligned with India’s goal to lower logistics costs from 13-14% of GDP to 8-10%, bringing Indian supply chains closer to global standards.

ULIP provides stakeholders like logistics service providers, start-ups, and industry players with actionable insights to optimize processes. The platform fosters innovation by enabling tech-driven companies to access valuable data to develop new solutions for the logistics industry.

With over 200 companies already registered on the platform, ULIP promises to enhance the overall efficiency of manufacturing, e-commerce, and export-import sectors, ensuring faster clearances and optimized transportation routes.

By digitizing logistics operations and promoting transparency, ULIP contributes significantly to making India a global logistics hub, improving competitiveness in international trade.

Key Players in the Indian Logistics Sector

Several large private companies, along with emerging start-ups, are contributing to the growth and transformation of the logistics sector. With more than 60 companies listed on the Indian stock exchanges, some of the top players include:

Container Corporation of India Ltd

• Market Cap: ₹ 55,592 crore
• CONCOR is a leading logistics player with a vast network of inland container depots (ICDs) and container freight stations (CFSs). It plays a pivotal role in India’s rail logistics sector.

Delhivery Ltd

• Market Cap: ₹ 31,858 crore
• Delhivery is a technology-driven logistics company offering a wide range of services, including warehousing, transportation, and express parcel delivery.

Blue Dart Express Ltd

• Market Cap: ₹ 19,332 crore
• Blue Dart specializes in express parcel delivery services across India, backed by its fleet of aircraft and ground vehicles, serving various industries.

Shipping Corporation of India Ltd

• Market Cap: ₹ 12,432 crore
• A premier shipping company providing maritime transportation services for goods, including crude oil, petroleum products, and containers.

TVS Supply Chain Solutions Ltd

• Market Cap: ₹ 8,788 crore
• TVS leverages technology-driven solutions to serve sectors like automotive, industrial, retail, and consumer products. The company is known for its just-in-time inventory systems and customized supply chain solutions, designed to optimize operational efficiency for its clients.

Allcargo Logistics Ltd

• Market Cap: ₹ 6,444 crore
• Allcargo is a global leader in multimodal logistics, offering warehousing, transportation, and project logistics services across 160 countries.

VRL Logistics Ltd

• Market Cap: ₹ 5,147 crore
• VRL Logistics provides comprehensive transportation and parcel delivery services, connecting various regions across India.

Transport Corporation of India Ltd (TCI)

• Market Cap: ₹ 8,468 crore
• TCI offers integrated supply chain solutions, including transportation, warehousing, and third-party logistics across India.

TCI Express Ltd

• Market Cap: ₹ 4,118 crore
• TCI Express focuses on express logistics services, catering to industries like e-commerce, healthcare, and automotive.

Gateway Distriparks Ltd

• Market Cap: ₹ 4,586 crore
• Gateway Distriparks specializes in container handling and warehousing services, operating at container freight stations and inland depots.

Mahindra Logistics Ltd

• Market Cap: ₹ 3,594 crore
• Mahindra Logistics offers third-party logistics solutions, including supply chain management and transportation services.

Snowman Logistics Ltd

• Market Cap: ₹ 1,416 crore
• Snowman Logistics is India’s largest integrated cold chain service provider, specializing in temperature-controlled warehousing and transportation solutions.

Start-ups like Rivigo (acquired by Mahindra Logistics now) and BlackBuck are disrupting traditional logistics models with technology-driven solutions such as digital freight marketplaces and AI-based route optimization.

Jobs and Salary Trends in the Indian Logistics Sector

The sector offers huge growth potential and opportunities as highlighted in this Economic Times article. Salaries in the Indian logistics and supply chain management sector vary based on the role, experience, and location. Here is an overview of salary trends across different roles:

• Supply Chain Managers: ₹8-12 lakh per annum (mid-level), ₹20-30 lakh (senior level).
• Warehouse Managers: ₹6-10 lakh per annum.
• Transportation Managers: ₹7-12 lakh per annum.
• Fleet Managers: ₹6-9 lakh per annum.
• Logistics Coordinators: ₹4-8 lakh per annum

As the sector evolves, companies are offering competitive salaries to attract and retain talent, especially in cities like Mumbai, Delhi, and Bangalore, where salaries tend to be on the higher side due to the growing demand for supply chain expertise.

Looking Ahead

The future of the Indian logistics sector looks promising, with projections indicating a market value of $591 billion by 2027. The organized logistics sector is expected to grow at a CAGR of 32% between 2022 and 2027, increasing its market share from 6% to 15% during this period. Investments in infrastructure, technology, and human capital will be critical for sustaining this growth.dsbhehe