Indian logistics player Budget Group ties up with top logistics companies across Asia, South Asia, the US and Europe
The international consortium plans to invest close to USD 12 million through credit facility & investment into this partnership. This will expand its reach to the international network of 11 more countries. Apart from this Budget plans to invest another USD 3-5 million in next 5 years.
Driven by growth in the manufacturing and improving infrastructure, the organized logistics in the country is projected to expand at 15-20% CAGR over the next five years.Indian logistics sector has grown at a rate of 15% in the last five years.
It is poised for accelerated growth, led by improvement in transport infrastructure, increased e-retailing penetration, impending GST implementation, and other initiatives like ‘Make in India.’ According to market estimates, the proposed growth offers opportunities across the spectrum for companies in transportation, storage, distribution, and allied services. And companies operating in the space are trying to get a share of the overall pie.
The GST will bring down the multiple taxes imposed by the central government and states and will lead to the creation of a unified market, which would facilitate seamless movement of goods across states and reduce the transaction cost of businesses.
The growing impetus on ‘Make in India’ campaign of the Indian government also focuses on strengthening of the Indian logistics industry. The success of the campaign and the growth of a number of industries such as IT/ ITeS, retail, pharma, and manufacturing depends largely on the growth of logistics sector.
“The announcement of Make in India campaign, proposed GST Bill is bound to impact the sector’s performance and will help the logistics industry. However, in comparison to its global peers, Indian logistics industry still lags on account of infrastructure constraints. Thus it is imperative that Indian companies work aggressively on their expansion plans and gear up for next big change in the environment scenario. Budget Group is committed to expand its reach and provide better service to its users,” said Manoj Kumar, Budget Group.
The multi-national presence establishes Budget Group as a stable and a reliable player in the market. “As we scale up our business and move up in the value chain for specialized tasks, our national and international competence will further improve and will help serve the nation in a better manner,” added Kataria, Managing Director of the Budget Group.
Expressing the thoughts on India alliance with Budget group, Ma Li Yu (Mary Ma) Chairperson, FARDAR Group said, “India has huge opportunity for Transportation sector especially in cargo and logistics space. Like China, the growing nature of manufacturing industry and e commerce penetration in India, there is a huge opportunity for international collaboration to stay connected in the cross national economy of cargo and logistics space. We feel really optimistic with our alliance with Budget Group in India and hope, it will undoubtedly a great way to grow both the companies and get access to global footprint on-the-go”.
The company has offices in more than 20 countries and plans to expand its reach to more by end of the year. The Company has offices across all Indian metros and cities.