Double-digit growth over the next decade and further consolidation of a fragmented market – thoseare the key findings of the newly-published “CEP Market Fact Sheet India” from CEP-Research. The
in-depth report also contains detailed market and competitor figures, along with analysis ofexpress and parcel companies’ products and prices.India is currently one of the hottest markets in the international express and parcelssector. Driven by sustained GDP growth and economic liberalisation, the country’s Courier, Expressand Parcels (CEP) industry is growing at double-digit rates in the 15-25% range. And this stronggrowth is set to continue in both the international and domestic segments over the coming decade,according to the latest report from the Hamburg-based business intelligence and consulting company.
The Indian CEP market was worth about €670 million in 2005, which represents a 50% increaseover the last five years and exponential growth over the last decade. “Looking ahead, we forecastthat the Indian market will more than double in revenues by 2010,” says CEP-Research manager RobertThyssen. “Domestic growth will outpace international growth, although both segments will have highdouble-digit average annual growth rates.” This will leave the domestic market at about two-thirdsof the total Indian market.
The other key trend highlighted in the “CEP Market Fact Sheet India” is increasing marketconsolidation resulting from more mergers and acquisitions. “The acquisitions recently announced byDHL and TNT and the expansion plans of FedEx and UPS show that the leading international operatorssee India as an important growth market for their worldwide networks,” comments Thyssen. “We expectthis trend to continue. International operators will try to gain a stronger foothold in the growingdomestic market, while the independent Indian firms will respond with smaller takeovers andinternational alliances to strengthen their competitive position.”
About 10 larger express and parcel companies currently lead the market with significantmarket shares, the report reveals. DHL Express is the clear market leader in both the internationaland domestic segments, the latter through subsidiary Blue Dart, with a combined market share threetimes higher than that of the nearest competitor. TNT Express is the main international competitorwith a market share more than double those of FedEx and UPS. In the domestic sector, India Post andlocally-owned companies DTDC, Elbee Express, First Flight and Overnite Express all have strongmarket positions.
The products and services offered by the leading players, however, vary widely. In thedomestic sector, most operators offer products mixing time-definite and deferred delivery.International products are more standardised, with the four integrators offering their main expressand deferred products.
Among the report’s other main findings are:
* Strong GDP growth (7-8% p.a.) expected to be sustained
* Fairly balanced international trade flow, mostly with USA, China and Europe
* Potential re-regulation threatens some market segments
* Bureaucracy and diverse regional state laws remain operational obstacles
* Poor infrastructure (airports, roads) presents a short-term problem
The “CEP Market Fact Sheet India” is targeted at strategic decision-makers, sales executivesand operational managers in international and regional express and parcel companies, as well as thewider transport and logistics industry and other interested parties. The 25-page report can beordered online under www.cep-research.com. A discounted introductory price of €495.00 appliesfor orders received by September 30, 2006. The price thereafter is €550.00.
