Recently, the government-owned logistics major Container Corporation of India (CCI), entered into a tie-up with retail biggie, Bharti-Wal-Mart. This signifies not only the increasing activity in logistics arena led by the retail boom but also the growing prominence of the sector. Indeed, CCI is not the only logistics company to witness this kind of retail-led growth. Many domestic and international logistics majors are covetously eyeing the Indian retail space, keen to grab the opportunity unlocked by the retail boom. Players in the logistics segments are now ramping up their capex program and growing either through organic or inorganic expansion route to meet the growing logistics demand generating from the organized retail sector. The logistics players are now trying their best to meet the growing challenges by offering myriad services which include inventory management, customs clearing and forwarding, and even value-added services like labeling and packaging, fleet management, order picking and inbound warehousing and cold chains.
Indian retail sector, which is still replete with traditional unorganized `mom and pop' stores, is now witnessing an unprecedented boom. According to Chicago-based international management consulting firm, AT Kearney's Global Retail Development Index (GRDI) 2006 report, India tops the annual list of the most attractive countries for international retail expansion.
Presently, the retail industry in India is worth $16 bn, of which the share of organized retail sector is one-fourth, and moreover, according to industry chamber Assocham, the organized retail sector in India is projected to grow from $4 bn to $22 bn by 2010. These speak volumes about the untapped opportunities available in the organized retail sector in India. And this has, for obvious reasons, attracted domestic as well as foreign interest in India's nascent organized retail sector. |
