In what way to establish a Best logistic company in India ?

Now the Indian economy has grown excessively in the last few years. Over 60 + million people in India are working in the logistics industry. If the Operational activity is enhanced by cost cutting and reduce the delivery time by having efficient and good logistics network . This would automatically generate profits and market share of the business.

The below different types of logistics business which entrepreneur can start and generate good amount of profit and become the best logistic company.
1. Courier and freight forwarding services
2. Air cargo Shipping
3. Warehousing & Distribution
4. Third party logistics (3PL)

Below are the process to start the logistic Company.

Registration and Compliance
The first step to get registration of the company and take the compliance certificate. As like any business , logistics services are also necessary to get registered and also to obtain the government compliance. In India, the below registrations are mandatory.

Freight forwarders need to get registered with International air Transport Association (IATA) and Air Cargo Agent Association of India (ACCAI).
It is also mandatory to be a part of industry forums Like Institute of Logistics so that issues raised to logistics industry may be raised. Income Tax Declaration, Directorate General of Foreign Trade registration, Registrar of Companies etc…
India Filings advise the following registrations for a logistics business:
• Private limited or limited company registration
• Import and export code
• VAT Registration
• ESI or PF Registration
• Trademark registration,


The 1st step for a logistics company is to invest. The amount of investment depend upon the logistic services that the company planning to provide or offer. For example, Offering freight forwarding service in India and it require investment of about Rs.11 Crore to 12 Crore. If the company providing the brokering and freight management services the investment require less then capital compared to a 3PL company. A 3PL service provider would need investments of Rs.60 Crores to Rs. 110 Crores.

If a company starting a Container Freight Station (CFS) or an Inland Container Depot (ICD) requires lot of investments like several hundred Crores. Therefore it is essential to analyze what kind of services the company will provide and then they will prepare the investment plan accordingly. Due to liberal FDI norms, it is almost simpler to find investment plan in logistics in India.

The business risk factor is the 2nd aspect that needs to take under consideration. Risk management plays a vast role in a cultivating economy like India, particularly for the logistics business. After all the business is very vigorous with many vendors and partners involved in the whole operations, the risk factor of a claim is remarkably high. It is necessary to cover accountability by taking acceptable amount of insurance for the business in case things would not purse or carry on according to the planning. The Insurance plans which are advisable to such logistic businesses are offered by lot of insurance companies in India like Cargo damage, theft, environment damage, injury etc. can cause serious accountability issues and although such business insurances empower the business to address some accountability issues, they are not always very effective. It is very important to analyse the risks involved before executing any contract. For example, if my cargo and property insurance companies would not cover inventory deficit as this is deliberate to be normal risk while operating a 3rd party logistics business.

Engagement of clients is the key of any successful business. if the entrepreneur wants to start a 3rd party logistics company. In India e many industries are booming currently such as infrastructure, automotive, services and manufacturing as India is mainly an export economy and all these industries would require logistics services & solutions. If the 3rd party logistic company offering operationally efficient solutions and analyze weak areas is the key to grab the new customer in 3rd party logistics services.

As per the norms of FDI (Foreign Direct Investment) it is easier for multi-nationals logistics companies to enter in the India logistics market, it is compulsory to make proper understanding of the competition that the business faces as such these big giant players invest very good amount in the marketing and infrastructure. It is very important to do a complete analyse on the competition and to focus on the company’s positioning and branding in the market.

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