Logistics firms affected by slowdown

Top companies such as DHL Express, Allcargo Logistics, Future Group and Stellar Value chain are witnessing the impact of lukewarm business on the pace of growth. This has propelled some of them to defer planned expansions, and setting relatively modest revenue targets. “The Indian logistics sector’s struggle to grow profitably in a market marked by tight margins and rationalised volumes continues. Transportation, particularly road transport being the biggest segment of the Indian logistics sector, is feeling some heat. The temporary dip in transport volumes has resulted in some companies taking measures including rationalising routes, manpower and new capacity orders,” said Prahlad Tanwar, partner and logistics expert, KPMG.