Assessing the Market Attractiveness and Defining a Growth Strategy in the Logistics Space

supply chain

Client Challenge

The client had a presence across various segments in the shipping and logistics business either directly or through joint ventures and had 27 offices across India.  The client requested UC Strategy to prepare a business plan to enter the coastal shipping business based on the following parameters:

  • Determine the likely growth of the domestic coastal cargo movement
  • Evaluate the opportunity in moving containers, Over Dimensional Cargo (ODC), ¬†project cargo and dry break bulk commodities along both the east and west coast of India

Our Approach

To assess the market attractiveness and create a growth strategy, UC Strategy adopted the following approach:

  • Conducted desk research and primary research across existing service providers, ports, user industries, shipping lines
  • Developed a perspective on the following parameters
  • Economic benefit for an end-to-end multi-modal movement using the coastal leg
  • Constraints imposed by the Merchant Shipping Act and Customs Act, on the growth of the industry
  • Trends in movement of ODC project cargo and dry break bulk commodities
  • Competition strategy and recent performance on coastal movement
  • Evaluated the strategic options available to the client and concluded on the way forward

Our Impact

The client received a clear analysis and understanding of the logistics industry in India. It also understood that moving forward, the coastal shipping business was expected to pick-up substantially.

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