Says TNT India managing director Jinendra Sancheti: In the next five years, the logistics business will overtake our express business in India. Globally, logistics account for revenues of $4.5 billion while express around $5 billion (and the rest $2.5 billion by mail). But logistics revenues come from lesser countries (around 40) while express revenues come from around 200 countries.
TNT India estimates that the outsourced logistics (contract business) market in India is between Rs 300 crore and Rs 400 crore a year currently. The new VAT (value-added tax) regime and emerging trends in outsourcing will trigger off a boom in the outsourced logistics business, says Mr Sancheti.
Earlier, TNT India announced the launch of a priority bio-medical shipment service for the life sciences segment (estimated at around Rs 25 crore and growing fast) under the product umbrella of medpak. Medpak is designed to carry a wide range of clinical trial and other bio-medical samples at various temperature conditions.
Already a team of 30 has been trained in the handling of life science products across 26 locationsTNT India has around 250 personnel (out of overall 550) involved in operations. TNT started developing global life science (or clinical trial) network a couple of years ago and the network currently accounts for $15 million in revenues.We will be tapping the countrys around 1,000 contract research organisations, pharma and bio-technology entities for medpak service, says Mr Sancheti.