Mumbai (Maharashtra) [India], August 31 (ANI/Mediawire): With increasing number of people shopping online for groceries and getting food delivered at their doorsteps, the logistics industry is seeing growth like never before.
Market analysts expect the logistics space to grow by a CAGR of 7.87% through 2024. As consumers shift to online purchases and D2C e-commerce brands grow in number, the need for professional 3PL services is seeing a massive upward trend.
Enter Futurz Logistics, a new entrant in the 3PL service arena, that has taken up the challenge to dominate this new space in the near future. From the esteemed Futurz Group that has a diversified portfolio of companies under its umbrella, Futurz Logistics was set up with a laser-focused intent to catch the growth wave while keeping the Group's people-driven values in mind.
Farhan Azmi, Managing Director of Futurz Logistics, puts it simply, "The Futurz Group is people-driven; that's the underlying thread that ties all our businesses, be it staffing and recruitment, real estate, education or fisheries. The logistics industry employs 80-90 lakh people and we wanted to be a part of such a sector that generates so many jobs. It ties in with our larger vision of creating employment in the country by harnessing our country's biggest asset, which is its human resources. In addition, the logistics space has been and continues to thrive over the years. In a nutshell, Futurz belongs in this space and we knew we would enter sooner or later."
Futurz Logistics was formed in March 2020 while COVID-19 was wreaking havoc and the lockdown had just come into effect. While they knew they were taking some risk, they believed in their analysis of the 3PL market and, as put by Azmi, "Today, we are reaping the benefits of taking that call. With the lockdown in effect, we knew that the direct-to-consumer supply of essentials and, eventually, non-essential goods too would see a massive uptick. That would lead to an increased requirement of logistical support that we could tap into. So, the lockdown actually prompted us to get into the system quicker because we knew we could provide value to the nation when it was needed the most."
Futurz Logistics currently specialises in middle mile and last mile delivery. Middle mile delivery is the delivery of goods from a warehouse or distribution centre to a fulfilment center or delivery centre. Last mile delivery is the delivery of the goods from the fulfilment centre or delivery centre to the final destination i.e. the end consumer.
Thus, Futurz Logistics helps with storage and transportation requirements across these miles. When they started operations in March 2020, they had just one delivery centre in Maharashtra.
Today, they have 70 delivery centres, and counting, with a pan-India presence. With 700 odd employees across this setup, they have been able to provide logistical services to their customers in middle mile and last mile delivery. While their current clientele mainly consists of major ecommerce players and retailers, they soon plan to step into the grocery segment as well, which is one of India's fastest growing online markets, with a market value of over 100 billion rupees already.
The Indian 3PL market specifically is expected to register a growth rate of over 8% between now and 2025. This means that India is likely to observe a growth of approximately USD 10 billion in terms of absolute numbers. India has become an attractive market for warehousing in the recent past and has been attracting significant investments in the past 2 years from global and private equity players.
With more and more D2C shipping forecasted as people across the country get comfortable with online purchasing, the industry outlook is extremely positive. That's why companies such as Futurz Logistics are investing in several 3PL assets to provide their customers with a well-oiled and optimised supply chain. If consumers were not already spoiled by insanely quick delivery experiences, companies like Futurz are making sure they create new benchmarks for delivery times. The future is going to be a consumer's delight!
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