India’s Express logistics industry has experienced remarkable growth in recent years, emerging as one of the fastest-growing sectors with a CAGR of 15.8% between 2012 and 2020. In 2020, the industry’s revenue soared to US$ 5.5 billion, a substantial increase from US$ 1.6 billion in 2005. With a positive future outlook, the sector is expected to maintain a CAGR of over 15% in the next decade, with an estimated market size of around US$ 10 billion by 2025.
As the express industry rapidly expands, sustainability is becoming a pivotal consideration with profound implications. The industry recognises the urgent need to reduce its environmental impact and is actively working towards achieving net-zero emissions.
Shift to Greener Fleet
To usher in a sustainable future, the adoption of alternative energy sources such as Compressed Natural Gas (CNG) and Electric Vehicles (EVs) is poised to revolutionise the entire industry. With the Indian government actively promoting the use of EVs in the express logistics sector, companies are embracing this transition at an accelerated rate. Apart from significantly reducing carbon emissions, this shift also minimises operational costs associated with fuel consumption. Notably, TCI Express Ltd (TCIEXPRESS), a prominent player in the industry, has committed to prioritising the adoption of CNG and BS VI-compliant vehicles and phasing out older vehicles, effectively reducing its carbon footprint.
Self-Sufficient Sorting Centres
Logistics companies are exploring ways to decrease electricity consumption in distribution centres and warehouses while reducing costs and reliance on non-renewable energy sources. We have taken a step towards achieving this goal by installing solar power plants with capacities of 600 kWp and 280 kWp at its sorting centres in Gurugram and Pune, respectively, leading to substantial reductions in electricity bills. Green building certifications like GEM5 and LEED Gold for these facilities validate the company’s commitment to the environment and sustainability.
Cutting-Edge Technologies
The industry is embracing innovative technologies such as automation, Artificial Intelligence (AI), the Internet of Things (IoT), robotics, and blockchain to enhance efficiency and minimise the carbon footprint. Our business has set a remarkable example by establishing India’s first and largest fully automated ‘GIGA’ sorting centre in Tajnagar, Gurugram, which has reduced its turnaround time by an impressive 40%.
Digitalisation Unlocking Efficiency
Digital transformation significantly enhances efficiency, transparency, tracking, and coordination within the logistics ecosystem, paving the way for a more sustainable future. Initiatives like the Unified Logistics Platform (ULIP) foster transparency and efficiency through digitisation and optimising processes.
Logistics companies adopting these advancements experience faster processing, cost reductions, and improved shipment tracking. TCIEXPRESS explores integrating its API tracking system with ULIP, unlocking the potential for route optimisation and fuel efficiency improvements.
Managing Director
TCIEXPRESS LIMITED
Embracing Eco-Friendly Practices
The logistics industry in India is witnessing a growing emphasis on sustainability and environmental consciousness. Key players are embracing eco-friendly packaging materials, resulting in a decreased carbon footprint. The industry needs to implement energy-efficient practices such as LED lighting, Smart Sync technology, and optimising generator usage.
We also emphasise on efficient e-waste recycling, biodegradable waste separation, and responsible management of operational waste, including paper and e-waste as its efforts towards net zero.
Shaping the Future
With sustainability reshaping the express logistics industry in India, through the adoption of CNG and EVs, harnessing alternative energy sources, leveraging advanced technologies, and embracing digitisation, the sector is moving towards a greener, more efficient, and environmentally responsible future. As companies prioritise sustainability and governments continue to support eco-friendly initiatives, the express logistics industry holds great promise for achieving a net-zero future.
