TVS Logistics Services today said the government's decision to give infrastructure status to the 'logistics' industry, would help the sector bring in lot of players and be more competitive.
The logistics sector is considered as a "sunrise sector" in the country and expected to grow multifold, a company statement said.
With infrastructure status, it would help the sector be more competitive and bring in a lot more players with integrated service approach that would help Indian manufacturers, it said.
"All these years, logistics sector has been seen as a mere transporter or a manpower provider. Integrated logistics as a service was not recognised as a value addition," TVS Logistics Services, managing director, R Dinesh said.
Stating that logistics costs were 13-14 per cent of the GDP as compared to 7-8 per cent in developed countries, he said it "nullified the cost advantage for the Indian manufacturers at the global arena in the past".
"The government has taken a proactive step by creating a logistics division under the Ministry of Commerce. This will help in integration of services and enable 3PL (third party logistics) players to provide real value to their customers," he said.
TVS Logistics has a unique opportunity to grow even more faster than the 20 per cent CAGR which was achieved in the last so many years, he said.
TVS Logistics Services manages over 10 million square foot of warehouse space in India and has presence in several countries like the US, the UK, Spain and Germany among others.
Recently, the government gave infrastructure status to logistics sector, covering cold chain and warehousing facilities, a move that is likely to attract more funding at competitive rates for these segments.
Amending the existing framework, a notification issued by the Department of Economic Affairs widened the category of infrastructure sub-sectors to transport and logistics from the earlier "transport".
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)