How to start a logistics business in India 1

Logistic business opportunities in india. Investment is depend on the type of the Logistics business like if you want to start a Courier or Logistics business in India then you have 2 option - a) Start your Own Company. b) Apply for the franchise of reputed company. So hug investment is required in the case of the creating your own company but you can start with the 2nd option and after the understanding about the logistics industry you can start your own company by raise the capital through investor. Below is the Great Infographic on How you can start your Courier or Logistics Business in India. You can read here in details. promoted by CodeGym. Funding and Investment. The first step that any logistics company would need to take is to seek investment. Amount of investment in logistics business will depend upon the services that you wish to start. A simple brokering and freight management service will require less capital compared to a 3PL service. For example, to setup a freight forwarding service in India, you will require a capital investment of about $1-$2 million USD. A pure 3PL service will require investments ranging from $10-18 million USD. Starting an Inland Container Depot (ICD) or Container Freight Station (CFS) requires investments running into several hundred million dollars (USD). It is important to identify the niche services that you wish to target and prepare an investment plan based on it. Finding investment in logistics is relatively simpler in India because of liberal FDI norms and active interest shown by large private equity players. Compliance and Registration. Second step is to obtain necessary registration and compliance certifications. Like with any business, Logistics services require certain registrations and Government compliance. In India, registration with International Air Transport Association (IATA), Air Cargo Agent Association of India (ACAAI) are very useful for freight forwarders. It may also be necessary to be part of industry forums such as CII Institute of Logistics to raise logistics industry related issues. Other important registrations in India include DGFT registration, Income Tax Dept, Registrar of Companies and related Government Departments. Third aspect that one needs to look at is the business risk. In a developing economy like India, risk management plays a crucial role, more so for logistics business. Since the logistics business is very dynamic with multiple partners/vendors involved in the entire operation, risk of a claim is very high. It is important to cover liability by taking adequate amount of business insurance. Many large insurance companies in India offer such insurance plans. Serious liability issues arise from cargo damage, theft, injury, environment damage etc. While business insurances help to address some of the liability concerns, they are not always very effective. For example, most Cargo and Property insurance in India will not cover inventory shortages as this is considered normal risk while running a 3PL business. Hence it is very important to understand the risks involved before executing any contract.