‘Infrastructure status’ to Logistics sector is a good follow-up reform after GST
– R. Dinesh, MD, TVS Logistics
Chennai, November, 22, 2017: TVS Logistics Services – India’s leading 3rd party logistics service provider – hailed the Government’s announcement of ‘Infrastructure’ status to the Logistics sector as an important announcement that comes as a good follow-up measure immediately after the GST reform to this sector. Logistics in India, is considered as the Sunrise sector that is expected to grow multifold. With the ‘Infrastructure’ status, it will help this sector to be more competitive and bring in a lot more players with integrated service approach which would help Indian manufacturers.
Says, Mr. R. Dinesh, Managing Director, TVS Logistics Services, “All these years, Logistics sector has been seen as a mere transporter or a manpower provider. The integrated logistics as a service was not recognized as a value-addition. Also, Logistics costs in India are as high as 13%-14% of GDP when compared to 7%-8% in developed countries. This nullified the cost advantage for the Indian manufacturers / exporters at the Global arena in the past.”
He further added, “The Government has taken a proactive step by creating a Logistics division under the Ministry of Commerce. This will help in integration of services and enable 3PL players to provide real value to their customers. Coupled with attraction of higher investments due to ‘Infrastructure’ status, TVS Logistics has a unique opportunity to grow even more faster than the 20% CAGR which we achieved in India in the last so many years.
Mr. R. Shankar, CEO, TVS Logistics Services, India, said, “There was an urgent need for 3PL players like TVS Logistics, who are integrators of knowledge and technology, to be seen as ‘value providers’. With this recognition of ‘infrastructure’ status, we get the much needed acknowledgement as a key contributor to the growth of the country. We, at TVS Logistics, are fully geared-up to make use of this advantage to achieve our ambitious target of $ 1 bn by Fy 21 from our Indian operations.”
POSTED ON November 22, 2017