Fast-growing Indian express market set for further
Double-digit growth over the next decade and further consolidation of a fragmented
market – those are the key findings of the newly-published “CEP Market Fact Sheet
India” from CEP-Research. The in-depth report also contains detailed market and
competitor figures, along with analysis of express and parcel companies’ products and
Hamburg, September 21, 2006 – India is currently one of the hottest markets in the international express
and parcels sector. Driven by sustained GDP growth and economic liberalisation, the country’s Courier,
Express and Parcels (CEP) industry is growing at double-digit rates in the 15-25% range. And this
strong growth is set to continue in both the international and domestic segments over the coming
decade, according to the latest report from the Hamburg-based business intelligence and consulting
The Indian CEP market was worth about €670 million in 2005, which represents a 50% increase over
the last five years and exponential growth over the last decade. “Looking ahead, we forecast that the
Indian market will more than double in revenues by 2010,” says CEP-Research manager Robert
Thyssen. “Domestic growth will outpace international growth, although both segments will have high
double-digit average annual growth rates.” This will leave the domestic market at about two-thirds of the
total Indian market.
The other key trend highlighted in the “CEP Market Fact Sheet India” is increasing market consolidation
resulting from more mergers and acquisitions. “The acquisitions recently announced by DHL and TNT
and the expansion plans of FedEx and UPS show that the leading international operators see India as
an important growth market for their worldwide networks,” comments Thyssen. “We expect this trend to
continue. International operators will try to gain a stronger foothold in the growing domestic market, while
the independent Indian firms will respond with smaller takeovers and international alliances to
strengthen their competitive position.”
About 10 larger express and parcel companies currently lead the market with significant market shares,
the report reveals. DHL Express is the clear market leader in both the international and domestic
segments, the latter through subsidiary Blue Dart, with a combined market share three times higher than
that of the nearest competitor. TNT Express is the main international competitor with a market share
more than double those of FedEx and UPS. In the domestic sector, India Post and locally-owned
companies DTDC, Elbee Express, First Flight and Overnite Express all have strong market positions.
The products and services offered by the leading players, however, vary widely. In the domestic sector,
most operators offer products mixing time-definite and deferred delivery. International products are more
standardised, with the four integrators offering their main express and deferred products.
Among the report’s other main findings are:
• Strong GDP growth (7-8% p.a.) expected to be sustained
• Fairly balanced international trade flow, mostly with USA, China and Europe
• Potential re-regulation threatens some market segments
• Bureaucracy and diverse regional state laws remain operational obstacles
• Poor infrastructure (airports, roads) presents a short-term problem
The “CEP Market Fact Sheet India” is targeted at strategic decision-makers, sales executives and
operational managers in international and regional express and parcel companies, as well as the wider
transport and logistics industry and other interested parties. The 25-page report can be ordered online
under www.cep-research.com. A discounted introductory price of €495.00 applies for orders received by
September 30, 2006. The price thereafter is €550.00.
Note to editors
A graphic and caption showing the overall market shares of the leading CEP operators in India is
available on request. We can also supply a background article highlighting the report’s findings in more
detail and giving expert analysis of developments.
In May 2005 ITA Logistics, located in Hamburg, launched CEP-Research - the first online platform with
detailed information about the worldwide Courier, Express and Postal market. CEP-Research publishes
daily news, daily and weekly newsletters, as well as market reports and studies, and customer-based
information products and research. The CEP-Research team consists of international researchers,
analysts and consultants with extensive professional know-how. For more information please visit our
website at www.cep-research.com.
Daniela Nigro Tel.: +49(040)3 808 79 37
Marketing Analyst Fax: +49(040)3 808 79 79
ITA Logistics GmbH
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