In FY 2023, the Indian logistics market was valued at Rs 900 crores. By 2028, the logistics sector is projected to have grown by 8–9% to reach Rs 1340 crores.

Under the national logistics policy, the government plans on building dedicated freight corridors which will improve roads and expand inland waterways. The government’s push to privatise ports and many PSUs has also improved efficiency which will positively impact private companies.

Let's discuss the top 6 companies under container, ports, and CEP segments.

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Container Segment

Container volume is expected to grow by 8% to 342 million tonnes this fiscal year and here are the top 2 companies that will outperform in the market through their logistical network:

• Container Corporation of India Ltd (CONCOR)

CONCOR is part of India’s logistics sector and focuses primarily on container transportation by rail. They also manage ports, air cargo facilities, and set up cold storage chains.

CONCOR developed the First Mile Last Mile App to offer complete logistics support to customers at affordable rates through competitive bidding among approved vendors at terminals.

CONCOR gave BHEL and Braithwaite a work order in FY21 to create 2,000 additional containers, with intentions to tender for more. CONCOR has no debt and distributes a 54.9% dividend.

• Transport Corporation of India Ltd

TCI is a leading logistics company in India that offers comprehensive freight transport and supply chain solutions using road, rail, and sea. They manage a large network of warehouses, trucks, trains, and ships.

TCI has grown by forming strategic partnerships with Mitsui & Co. They continue to invest in expanding their infrastructure and services and maintain an asset-light model to stay flexible and cost-effective.

In the future, TCI plans to enhance its logistics services and expand its presence in the market, ensuring it remains a top player in the logistics industry.

Ports Segment

The government plans to invest US$ 9 billion in the construction of Vadhavan Port in Mumbai here are the top 2 companies that will benefit:

• Adani Ports & Special Economic Zone Ltd

APSEZ develops, operates, and maintains port facilities. They also manage SEZs and related infrastructure near their Mundra Port. They have expanded by acquiring ports and investing in infrastructure. Adani Ports & Special Economic Zone Ltd also runs logistics parks and has partnered with major companies like Flipkart.

Their strategic plans include becoming the world's largest private port company. APSEZ focuses on

reducing costs and expanding its network through acquisitions and technological advancements. They have been maintaining a dividend of 19.3% and their sales grew by 18.7% in the last 10 years.

• JSW Infrastructure Ltd

JSW Infrastructure Ltd manages nine ports on the west and east coasts. They provide services like cargo handling, storage, and logistics for their group and third-party customers.

JSW Infrastructure operates ports both in India and the UAE. With strong financial performance in FY24, the company continues to invest in expanding its operations and forming strategic partnerships to enhance its market position.

They raised Rs 2,800 crore through an IPO on October 3, 2023, and the funds were used for repaying loans and capital expenditures. They have delivered a profit CAGR of 34.6% in the last 5 years.

Courier Express Parcel (CEP) delivery segments

The CEP market in India is estimated to be at 4.4 billion pieces in 2023 and here are the top two companies that benefit massively:

• Delhivery Ltd

Delhivery is a leading logistics company that operates in the CEP model and delivers packages, handles heavy goods, manages freight, and provides supply chain solutions, international shipping, and logistics software.

They also provide services like handling returns for e-commerce, collecting payments, assembling products, and detecting fraud.

• Blue Dart Express Limited ​​​​​​​ ​​​​​​​

Blue Dart is a leading courier and logistics company in South Asia. They are into transporting and delivering time-sensitive packages directly to customers using ground and air networks.

They handle millions of shipments each year. They have a vast network of locations, aircraft, and vehicles. The company has a profit growth of 26.3% CAGR and maintained an ROE of 34.7% with a healthy dividend payout of 25.4%.

Conclusion

Investing in India's logistics companies can be promising because of the growth in online shopping, international trade, and helpful government policies. For those looking to invest for the long term, selecting the right logistics companies could bring great benefits as India's infrastructure and economy expand.

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