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Jeet B Bhayani (SEBI RA)

26th Sep · SEBI-Registered Analyst

India is rapidly becoming the favored location for third-party logistics (3PL) growth in the Asia-Pacific (APAC) area, with almost 70% of companies intending to expand their presence in the country within the next two years, as stated in a CBRE report. Fueled by robust economic growth and increasing demand from e-commerce, quick commerce, and non-tier-I markets, 3PL firms are emerging as the primary catalysts of the nation’s logistics real estate market. From 2021 to the first half of 2025, these companies represented 40-50% of overall leasing activity, with Delhi-NCR, Mumbai, and Bengaluru emerging as prominent centers. The use of multi-tenanted structures by more than 60% of 3PL firms in India enables quick scaling, reduced initial expenses, and risk distribution, positioning them favorably to address increasing demand. The industry is experiencing a distinct transition towards technology-oriented, future-ready warehouses. Approximately 76% of third-party logistics firms are currently adopting warehouse management software. Simultaneously, automated technologies like Internet of Things (IoT) sensors, conveyor systems, Goods-to-Person picking, Automated Storage and Retrieval Systems (AS/RS), and robotic arms are being utilized more frequently to improve efficiency, precision, and throughput. The implementation of smart logistics infrastructure highlights India's transformation into a global trade and manufacturing center, where 3PL companies are crucial in creating scalable, efficient, and competitive supply chains that will propel the nation’s economic development.

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