Ground express couriers growing much faster than flying competitors

New Delhi: When it comes to the business of delivering couriers, service providers seem to prefer hugging the ground rather than taking to the skies. A number of operators in the space say they see a higher growth potential in the ground express market as compared to the air express sector, courtesy improving ground infrastructure and a heavy jump in cargo movement between non-metros.
“Currently, the ground express courier market in the organised sector is Rs 1,160 crore and is expected to grow at a CAGR of 23 per cent over the next five years. So by 2012, the market is likely to more than double to Rs 2,700,” says Ketan Kulkarni, general manager (marketing) at Blue Dart, a leading player in the courier services space. “Compared to this, the Rs 1,260 crore organised air express courier segment is growing slower at 19 per cent every year.” With 70 per cent of the ground express market currently in the unorganised sector, the actual size of the business would be significantly larger, say experts.While according to Blue Dart, a major reason for the potential in this sector lies in improving ground infrastructure like roads and warehouses, others attribute it to rapid growth in courier cargo between non-metros.
17/11/07 Zeenat Nazir/Indian Express

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Categories: Cargo Nov 2007