MUMBAI, INDIA: The IT spends in the Indian logistics industry would grow to approximately Rs. 1,000 crore by 2013, revealed a recent survey report, 'Technology Survey for the Indian Logistics Industry 2008', conducted by Kale Consultants Ltd in partnership with Feedback Business Consulting Services.

The report stated that the logistics industry revenue would shoot up to Rs., 1000 crore from the existing Rs. 400 crore in the next five years, said a press release.

The demand is expected from the Western part of India followed by the North and Southern regions.

46 per cent on IT investments are currently made towards capital expenditures and the remaining 54 per cent in operational sector.

The key objective of the study was to assess the market dynamics and highlight the technology adoption trends in the logistics industry, it added.

“There is a lot of activity happening in this highly fragmented market and the trends are quite revealing. 3PL players are growing at over 25 per cent.

Small and medium family owned enterprises are growing in stature in the integrated logistics space,” said Sumeet Nadkar, head - Logistics SBU, Kale Consultants Ltd.

He added that the global majors have committed to huge investments for their Indian operations. PE funds are increasingly eying the sector.

The sector has already attracted investments of over Rs.. 20,000 crore in the first half of 2008.

The investment in technology is expected to result in higher utilization of assets like freight forwarding, airports, warehousing, express and courier services and radio frequency identification etc, the release said.

Nadkar,commented, “Technology is expected to be a key enabler to support the logistics sector in its growth.
Influx of capital in the logistics value chain will also depend on the ability of the stakeholders to deploy technology in improving their processes and functions.”